Arcadis Nv · EURONEXT:ARCAD
Arcadis Nv — Q3 2020 Earnings Presentation
14 slides from Arcadis Nv's earnings presentation, Oct 29, 2020
Slide 1: Third quarter 2020 Trading Update
Third quarter 2020 Trading Update Strong operational performance and excellent free cash flow Audiocast, 29 October 2020 Peter Oosterveer (CEO) & Virginie Duperat (CFO)
Slide 2: Disclaimer
THIRD QUARTER 2020 TRADING UPDATE Disclaimer Statements included in this presentation The forward-looking statements are based that are not historical facts (including any upon our current expectations, plans, statements concerning investment estimates, assumptions and beliefs that objectives, other
Slide 3: Circular cradle-to-cradle design for a leisure building
VENLO, THE NETHERLANDS Circular “cradle-to- cradle” design for a leisure building Peter Oosterveer CEO
Slide 4: Demonstrated resilience
THIRD QUARTER 2020 TRADING UPDATE Demonstrated resilience ▪ Sustained focus on the health & safety of everyone we work with ▪ Strong results in most regions, overall backlog growth ▪ Arcadians continue to demonstrate exemplary adaptability and flexibility ▪ Actions initiated at Q1 end to reduce cost
Slide 5: Strong operational performance, excellent free cash flow
THIRD QUARTER 2020 TRADING UPDATE Strong operational performance, excellent free cash flow ▪ Increase of operating EBITA with 22% to €66 million (Q3 2019: €54 million), operating margin of 10.9% (Q3 2019: 8.4%) ▪ Excellent free cash flow of €119 million (Q3 2019: €4 million), resulting from global a
Slide 6: Optimizing Georgia's traffic flow using our digital solutions
STATE OF GEORGIA, UNITED STATES Optimizing Georgia’s traffic flow using our digital solutions Virginie Duperat CFO
Slide 7: Strong operational results, excellent free cash flow and backlog growth
THIRD QUARTER 2020 TRADING UPDATE Strong operational results, excellent free cash flow and backlog growth Third quarter financials in € millions Period ended September 30 2020 2019 Change Gross revenues Net revenues Organic growth 781 604 -3% 836 642 3% -7% -6% 10.9% Operating EBITA % EBITDA 92 81 1
Slide 8: Third quarter segment revenue
THIRD QUARTER 2020 TRADING UPDATE Third quarter segment revenue Net Revenue In € millions Q3'20 Q3'19 ∆%* Americas 218 215 8% North America Strong growth in Water and Infrastructure, now supported by Environment Latin America Solid growth driven by Infrastructure and Environment in Brazil EMU 265 27
Slide 9: Strong Q3 performance despite modest revenue decline
THIRD QUARTER 2020 TRADING UPDATE Strong Q3 performance despite modest revenue decline Net Revenues and organic growth Operating EBITA (margin) € millions, % € millions, % 5% 10.9% 2% 3% 3% 8.4% 9.2% -3% -3% 7.7% 7.8% 7.2% 61 66 647 660 658 50 54 48 49 642 628 604 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20
Slide 10: Sustainable urban development: hospital becomes residential area
STUTTGART, FIRST QUARTER 2020GERMANY TRADING UPDATE Sustainable urban development: hospital becomes residential area Peter Oosterveer CEO 29 October 2020 10
Slide 11: Well positioned for the future
THIRD QUARTER 2020 TRADING UPDATE Well positioned for the future ▪ Adaptable organizational structure and resilient business model ▪ Improved operating margin and continued excellent free cash flow ▪ Very solid financial position to weather the current uncertainty ▪ Good organic backlog growth; repr
Slide 12: Arcadis. Improving quality of life.
Arcadis. Improving quality of life.
Slide 13: Continued improvement in working capital
THIRD QUARTER 2020 TRADING UPDATE Continued improvement in working capital € millions Sep-19 Jun-20 Sep-20 Gross receivables 524 601 531 Provisions -58 -55 -52 ▪ Continued strong cash collection in Q3 Provisions % 11% 9% 10% Trade receivables1 465 546 479 ▪ Significant improvement in WIP Net Work in
Slide 14: Immediate and significant action to protect our people and secure business continuity
THIRD QUARTER 2020 TRADING UPDATE Immediate and significant action to protect our people and secure business continuity Eight COVID-19 workstreams established early March: People Client Care GEC/GSSC Communications Systems Recover and Travel Financial Impact Continuity & IT Re-imagine of our people