Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — Q3 2020 Earnings Presentation
46 slides from Bureau Veritas Sa's earnings presentation, Oct 22, 2020
Slide 1: Q3 2020 Revenue
Q3 2020 REVENUE OCTOBER 22, 2020
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: Agenda
Agenda HIGHLIGHTS RESTART YOUR BUSINESS WITH BV FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX
Slide 4: Highlights
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Slide 5: Health & Safety and clients' service at the core of our actions
Health & Safety and clients’ service at the core of our actions Ensure health and safety of all of Bureau Veritas employees Accompany our clients in managing their risks and restarting their operations HIGHLY MOBILIZED PROACTIVE TEAMS TO MAXIMIZE THE RETURN TO GROWTH Q3 2020 REVENUE 5
Slide 6: Q3 2020 highlights
Q3 2020 highlights ORGANIC REVENUE GROWTH OF -4.4% • Organically, 3 out of 6 businesses grew at 1.9% on average: Certification +7.0%, Marine & Offshore +1.9% and Buildings & Infrastructure +0.6% REVENUE €1.15bn • Agri-Food & Commodities and Industry declined by 7.5% and 8.2% respectively -9.6% o/w -
Slide 7: Nearly half of the Group's portfolio is growing organically in Q3 2020
Nearly half of the Group’s portfolio is growing organically in Q3 2020 Q3 2020 PORTFOLIO SPLIT IN PERCENTAGE OF DIVISIONAL REVENUE SEQUENTIAL IMPROVEMENT ORGANIC GROWTH Low single-digit organic growth for nearly (1.6)% half of the Group’s portfolio (4.4)% A BALANCED 45% • Strong rebound from Certifi
Slide 8: A resilient B&I portfolio driven by robust fundamentals
A resilient B&I portfolio driven by robust fundamentals 9M 2020 PORTFOLIO SPLIT IN PERCENTAGE OF DIVISIONAL REVENUE ROBUST FUNDAMENTALS Opex (“In-Service”) • Recurring business with low volatility 23% • Contact average duration: 5 years • Approx. 75% of the French business is geared towards Opex-rel
Slide 9: Certification bounces back in Q3, with supportive long term trends
Certification bounces back in Q3, with supportive long term trends around Supply Chain & Sustainability management 9M 2020 PORTFOLIO SPLIT IN PERCENTAGE OF DIVISIONAL REVENUE STRONG BUSINESS DRIVERS Supply Chain & Sustainability core Short term tailwinds services • Benefit from “Restart Your Busines
Slide 10: Consumer Products' diversification strategy underway
Consumer Products’ diversification strategy underway in a context of challenging trading conditions Different trends across geographies • Difficult trading conditions in US, Europe and China • Robust growth in South & South East Asia • Strong pockets of growth in the Middle East and Latin America Di
Slide 11: As a Business to Business to Society company, Bureau Veritas tackles pressing challenges
As a “Business to Business to Society” company, Bureau Veritas is committed to tackling the world’s most pressing challenges SUPPORTING OUR CLIENTS IN MEETING THEIR SUSTAINABILITY COMMITMENTS IS OUR DNA Our mission is to reduce our clients' risks, improve their performance and help them innovate to
Slide 12: Bureau Veritas supports its clients to comply with regulations, manage risks and improve performance
Bureau Veritas supports its clients to comply with regulations, manage risks and improve performance RESOURCES & PRODUCTION NEW MOBILITY RENEWABLES & E-MOBILITY, ALTERNATIVE ENERGIES BUILDINGS ALTERNATIVE SOCIAL, ETHICS ENERGY TRANSITION & INFRASTRUCTURE PROPULSION & GOVERNANCE CONSUMPTION CONSTRUCT
Slide 13: Bureau Veritas supports its clients to comply with regulations, manage risks and improve performance
Bureau Veritas supports its clients to comply with regulations, manage risks and improve performance… RESOURCES & PRODUCTION NEW MOBILITY RENEWABLES & E-MOBILITY, ALTERNATIVE ENERGIES BUILDINGS ALTERNATIVE SOCIAL, ETHICS ENERGY TRANSITION & INFRASTRUCTURE PROPULSION & GOVERNANCE Onshore and offshore
Slide 14: Strong macro drivers will reinforce current trends and create incremental opportunities
Strong macro drivers will reinforce current trends and create incremental opportunities SUPPLY CHAIN EUROPEAN ENERGY GREEN TRANSITION MANAGEMENT DEAL NEED FOR BETTER SUPPLY 11 TOPICS TO BE CARBON 16 TERAWATT OF RENEWABLES CHAIN RISK MANAGEMENT NEUTRAL IN 2050 TO BE ADDED TO GLOBAL TO BECOME MORE FLE
Slide 15: Financial Review
7828. BUREAU VERITAS FINANCIAL REVIEW
Slide 16: Q3 2020 total revenue decline of 9.6%
Q3 2020 total revenue decline of 9.6% REVENUE EVOLUTION VARIATION ANALYSIS (4.7)% at constant currency 1,270.7 (4.4)% 1,148.3 (0.3)% (4.9)% Q3 2019 Organic 1 Scope Currency Q3 2020 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentation
Slide 17: Q3 2020 revenue growth by business
Q3 2020 revenue growth by business % of @ constant revenue currency 29% Buildings & Infrastructure (0.8)% +0.6% (0.2)% 22% Agri-Food & Commodities (7.5)% (7.5)% 20% Industry (0.5)% (8.2)% (8.7)% 13% Consumer Products (11.0)% +0.1% (10.9)% 8% Marine & Offshore +1.9% +1.9% 8% Certification +7.0% +0.3%
Slide 18: 9M 2020 total revenue decline of 10.6%
9M 2020 total revenue decline of 10.6% REVENUE EVOLUTION VARIATION ANALYSIS (7.8)% at constant currency 3,747.3 3,348.8 (7.4)% (0.4)% (2.8)% 9M 2019 Organic 1 Scope Currency 9M 2020 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentatio
Slide 19: Business Review
BUSINESS REVIEW
Slide 20: Portfolio diversification provides resilience in the crisis (1/3)
Bureau Veritas’ portfolio diversification provides resilience in the crisis (1/3) Marine & Offshore Agri-Food & Commodities • Mid-single-digit growth in New Construction; • Agri-Food: low single-digit organic improvement, led by food activities (+4.4%) while stable Agricultural services; • Low singl
Slide 21: Portfolio diversification provides resilience in the crisis (2/3)
Bureau Veritas’ portfolio diversification provides resilience in the crisis (2/3) Industry Buildings & Infrastructure • Strong growth for Power & Utilities – strong wins in Latam; • Robust growth in Europe led by the largest country, France, up 4.2% thanks to a catch-up of regulatory driven • Oil &
Slide 22: Portfolio diversification provides resilience in the crisis (3/3)
Bureau Veritas’ portfolio diversification provides resilience in the crisis (3/3) Consumer Products Certification • Activity still impacted by low activity levels remaining with • Recovery driven by a catch up of audits postponed in H1 American and European clients (new product launches on and the b
Slide 23: Outlook
OUTLOOK
Slide 24: 2020 Outlook: scenarios & assumptions
2020 Outlook: scenarios & assumptions Amongst the different scenarios considered by Bureau Veritas, for the full year 2020, the “Slow & gradual recovery” scenario is the scenario retained to date considering the latest available information and assuming the absence of lockdown measures in the Group’
Slide 25: The new reality for organizations: more flexible, responsive, innovative
The new reality for organizations: more flexible, responsive, innovative and committed to Society with transparency Impartiality and independence to become more central than ever to meet society’s growing demand for transparency Digital technologies as a pillar for the new reality to support clients
Slide 26: Q&A
Te28, BUREAU VERITAS Q&A
Slide 27: 2020-2021 Financial Calendar & Contacts
2020-2021 Financial Calendar & Contacts 2020-2021 AGENDA INVESTOR RELATIONS DEPARTMENT Full-Year 2020 Results: February 25, 2021 BUREAU VERITAS HEAD OFFICE – 40/52 BOULEVARD DU PARC Q1 2021 revenue: April 22, 2021 92200 NEUILLY-SUR-SEINE, FRANCE H1 2021 Results: July 28, 2021 Laurent Brunelle Head o
Slide 28: Appendix
Te28 BUREAU VERITAS APPENDIX
Slide 29: Supporting clients in their Corporate Social Responsibility commitments
Bureau Veritas continues to support its clients in their Corporate Social Responsibility commitments BUREAU VERITAS STRATEGY IS ALIGNED WITH UN’S BUREAU VERITAS IS AMONGST THE INDUSTRY LEADERS SUSTAINABLE DEVELOPMENT GOALS (SDG) ACCORDING TO NON-FINANCIAL RATING FIRMS 2 B nd most responsible rating
Slide 30: 9M 2020 revenue growth by business
9M 2020 revenue growth by business % of @ constant revenue currency 28% Buildings & Infrastructure (1.8)% (3.4)% (5.2)% 23% Agri-Food & Commodities (7.6)% +0.2% (7.4)% 21% Industry (0.2)% (7.3)% (7.5)% 13% Consumer Products (17.4)% +0.1% (17.3)% 8% Marine & Offshore +2.9% +2.9% 7% Certification (12.
Slide 31: Marine & Offshore (8% of revenue)
Marine & Offshore (8% of revenue) KEY FINANCIALS Q3 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2020 Q3 2019 Change • New Construction: notably driven by South Korea, against challenging comparables Mid-single-digit growth Revenue 89.3 91.4 (2.3)% in New Construction Organic +1.9% • Core In-Servi
Slide 32: Agri-Food & Commodities (22% of revenue)
Agri-Food & Commodities (22% of revenue) KEY FINANCIALS Q3 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2020 Q3 2019 Change • O&P: a double-digit organic decline, with similar trends in both Trade and Upstream activities Revenue Organic 252.5 293.3 (13.9)% (7.5)% The competitive environment in the
Slide 33: Industry (20% of revenue)
Industry (20% of revenue) KEY FINANCIALS Q3 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2020 Q3 2019 Change • Oil & Gas Opex: Opex-related business opportunities remain good overall Revenue 235.1 281.4 (16.5)% OPEX P&U Organic (8.2)% • Oil & Gas Capex: double-digit organic business Acquisitions (
Slide 34: Buildings & Infrastructure (29% of revenue)
Buildings & Infrastructure (29% of revenue) KEY FINANCIALS Q3 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2020 Q3 2019 Change Construction-related activities (43% of divisional revenue): significant decline Revenue 327.6 337.5 (2.9)% China Organic +0.6% • Capex-related works remained under pressu
Slide 35: Certification (8% of revenue)
Certification (8% of revenue) KEY FINANCIALS Q3 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2020 Q3 2019 Change • Most geographies experienced a rebound in organic growth with the exception of a few Revenue Organic 88.5 85.5 +3.5% +7.0% countries that were still affected by lockdown Portfolio div
Slide 36: Consumer Products (13% of revenue)
Consumer Products (13% of revenue) KEY FINANCIALS Q3 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2020 Q3 2019 Change • E&E: performed better than the divisional average, with a contrasted situation by Revenue 155.3 181.6 (14.5)% sub-segment: resilient performance in Mobile South East Asia Organic
Slide 37: 9M 2020 revenue by business
9M 2020 revenue by business REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE 9M 2020 IN EUR MILLIONS €m Organic Scope Currency Marine & Offshore 274.3 +2.9% - (2.2)% Marine & Offshore 13% 8% Agri-Food & Commodities Agri-Food & Commodities 769.6 (7.6)% +0.2% (3.9)% 7% 23% Industry Industr
Slide 38: 9M 2020 revenue evolution by geography
9M 2020 revenue evolution by geography REVENUE BY GEOGRAPHIC AREA (9M 2020) REVENUE EVOLUTION BY NATURE (9M 2020) Organic growth Acquisition growth Asia Americas +0.4% Pacific 24% 31% (3.1)% (7.5)% (9.7)% (0.7)% (10.1)% Africa, Middle East (1.1)% 8% Europe 37% (10.8)% (3.8)% (7.5)% (9.7)% Americas E
Slide 39: Q3 2020 revenue by business
Q3 2020 revenue by business REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE Q3 2020 IN EUR MILLIONS €m Organic Scope Currency Marine & Offshore 89.3 +1.9% - (4.2)% Marine & Offshore 13% 8% Agri-Food & Commodities Agri-Food & Commodities 252.5 (7.5)% - (6.4)% 8% 22% Industry Industry 235
Slide 40: Q3 2020 revenue evolution by geography
Q3 2020 revenue evolution by geography REVENUE BY GEOGRAPHIC AREA (Q3 2020) REVENUE EVOLUTION BY NATURE (Q3 2020) Organic growth Acquisition growth Americas Asia 23% Pacific +0.1% 32% +1.3% (0.9)% (4.8)% (6.3)% (10.2)% Africa, Middle East 8% Europe (0.2)% 37% (10.4)% +0.4% (6.3)% (4.7)% Americas Eur
Slide 41: Currency mix in 9M 2020
Currency mix in 9M 2020 REVENUE CURRENCY EXPOSURE CURRENCY CHANGE (YEAR ON YEAR) OTHER 11.8% USD (and pegged) (0.1)% VND 0.9% XOF 1.0% CNY (1.9)% RUB 1.0% AUD (3.3)% COP 1.2% EUR 29.5% KRW 1.3% GBP (0.2)% INR 1.5% CAD (1.9)% SGD 1.5% HKD +0.9% TWD 1.6% BRL (23.6)% JPY 2.3% CLP (14.5)% CLP 2.4% 9M 20
Slide 42: 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 “organic” revenue growth, which series of alternative performance in
Slide 43: 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 44: 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 45: Ownership and market data at September 30, 2020
Ownership and market data at September 30, 2020 STABLE SHAREHOLDING STRUCTURE MARKET DATA 0.7% • Listed on Euronext-Paris • Ticker: BVI • ISIN: FR0006174348 • IPO on October 2007: EUR 9.44/share 35.6% Wendel • Share Price1: EUR 19.26 Managers & Employees • Market Cap.1: EUR 8.7bn 62.8% Free Float •
Slide 46: Shaping a World of Trust
BUREAU |BUREAU | Shaping a World of Trust