Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — Investor Day (September 2011)
38 slides from Bureau Veritas Sa's investor day presentation, Sep 20, 2011
Slide 1: Bureau Veritas 2015 Strategic Plan
BUREAU VERITAS 2015 STRATEGIC PLAN Tuesday, September 20, 2011 1
Slide 2: Selected Business Highlights
SELECTED BUSINESS HIGHLIGHTS 2
Slide 3: Focus on CPS: Expanding our value in the supply chain
FOCUS ON CPS EXPANDING OUR VALUE IN THE SUPPLY CHAIN Oliver Butler Executive Vice President, Consumer Product Services 3
Slide 4: A global leader with a "buy and build" DNA
A global leader with a “buy and build” DNA ► Global Leader in Toys/Hardlines Revenue breakdown* ► Number 2 in Softlines Textiles, Garments Electrical & ► Leadership position in US retail Europe & Softlines Electronics Asia 13% 39% 22% ► Strong gains in EU retail 78% ► Strategic leader in quality Ame
Slide 5: 2007-2011 Achievements
2007-2011 Achievements Hardlines ► #1 worldwide >10% organic growth p.a. Toys +470bps margin improvement ► Innovative solutions Softlines +50% headcount ► Network expansion €384m Electrical and ► Renewables capabilities Electronics ► Leadership in WiFi/WiMAX 26.8% Inspection, ► Significant growth €2
Slide 6: Supply Chain Optimization
Supply Chain Optimization Gaining credibility through benchmark performance CPS Service Clients‟ benefits Improvement (08-11) Faster ► Cycle time improved by 50% ► Reduced logistics costs ► Offset inflation impact ► Reduced product costs „Cheaper‟ through productivity gains ► Service quality 99.9% ►
Slide 7: Moving from a narrow scope within the supply chain
Moving from a narrow scope within the supply chain… Post Requirements Supplier Pre- Post- Production Shipment & Management Assessment Production Production After Sales Testing Testing Inspection © - Copyright Bureau Veritas 7
Slide 8: … to a more comprehensive offering
… to a more comprehensive offering including decision support Post Requirements Supplier Pre- Post- Production Shipment & Management Assessment Production Production After Sales Testing Testing Life Cycle Inspection Process Control Process Control Plan Development Plan Audit Factory Assessment Count
Slide 9: Supply chain quality management solutions to attract and retain customers
Supply China quality management solutions to attract and retain customers Market Advisory ► Sourcing trends & hotspot management Services ► Regulatory requirements and compliance plan Supplier ► Supplier vetting and traceability Validation Services ► Factory Audits, Quality Benchmarks Product Qualit
Slide 10: Facing a growing but changing business
Facing a growing but changing business What do we see! ► Shifts in decision authority Food / Textiles / Retailers / sourcing offices Cosmetics Softlines 48% 10% Brands Hardlines & Toys manufacturers Intermediaries Trading companies Branded 14% Full service manufacturers Factories 28% ► Supply chain
Slide 11: Where are we going: 2012-2015 priorities
Where are we going: 2012-2015 priorities 2011 portfolio Food / Cosmetics 1% ► Global player in Food E&E 22% ► Global player in E&E Ambition Hardlines ► Active in all key markets & Toys 38% ► Market leader in softlines / IAC ► Leader in supply chain quality management Textile & Softlines 39% ► EU New
Slide 12: Architecture for continued profitable growth
Architecture for continued profitable growth Continuous Improvement Win Government relations & Organizational Partnerships Asia + China Growth Effectiveness Acquisition & & Integration Food / E&E Regional Optimization Outsourcing Management Outsourcing Executive Supply Chain Leadership Supply Chain
Slide 13: Wrap Up
Wrap Up 1 The market growth opportunity is achievable 2 Organization is well positioned 3 Many growth initiatives already underway 4 Acquisition pipeline is healthy 5 Great team in place © - Copyright Bureau Veritas 13
Slide 14: Building a Sustainable Eldorado
BUILDING A SUSTAINABLE ELDORADO Eduardo Camargo Executive Vice President Latin America Zone 14
Slide 15: A rising influence on world economy
A rising influence on world economy ► 580m people (8% of world population) 17 countries and only 2 languages ► GDP: 80% of Mainland China ► Brazil: the “B” of BRICs 30% of total population and 40% of total GDP ► Strong economic recovery from crisis ► Favorable economic scenario 15% of world’s
Slide 16: Strong TIC growth drivers
Strong TIC growth drivers ► Positive economic forecasts and political stability ► Booming demand for commodities and increased trading flows ► Accelerating growth of domestic consumption ► Strong investments in energy and infrastructure ► Progressive privatization of government verification services
Slide 17: Capitalizing in the future on the assets we've built
Capitalizing in the future on the assets we’ve built Prominent position in Oil & Gas, Power & Utilities, Leadership Minerals, Automotive and Certification Solid organization in key countries and promising Organization leaders Regional technical & commercial centers of Innovation excellence creating
Slide 18: Revenues x4 since 2006
Revenues x 4 since 2006 Expanded scope Average organic growth New growth areas > 18% p.a. Leadership and acquisitions >€350m Chile and Argentina development Brazil development ~€90m 2006 2007 2008 2009 2010 LTM 2011 PF © - Copyright Bureau Veritas 18
Slide 19: A solid and diversified growth platform built over time
A solid and diversified growth platform built over time 1970 1980 1990 2000 2010 Marine and Oil Oil & Gas Power and Mining Environmental, Automotive and Infrastructure & Gas Offshore Onshore Utilities Industrial and Agri Food and Supply Chain and Public Industrial Industrial Industrial Commodities O
Slide 20: Leading position in fast-growing Oil & Gas and Power industries
Leading position in fast-growing Oil & Gas and Power industries # 1 in Oil& Gas and Power Industries in Latin America Clients intimacy and knowledge of assets and processes Unrivaled local technical capabilities and references Service offering 2012-2015 growth drivers ► Engineering, Procurement and
Slide 21: Petrobras' preferred supplier
Petrobras’ preferred supplier Marine & offshore classification and certification E&P Units, Sub sea & drilling systems technical consulting Procurement services: Shop inspection, expediting and suppliers evaluation Onshore & offshore Asset Integrity Management Oil & fuel and HSE testing Sales & Tech
Slide 22: A center of excellence to support our clients in the deepwater challenge
A center of excellence to support our clients in the deepwater challenge Brazil: biggest (ultra) deepwater opportunities… Our credentials Subsea Certification To come US Golf of Mexico Ghana Nigeria Malaysia Congo Angola Brazil P53 FPSO Classification Reserves: 26.1 bn boe 19 projects To come … and
Slide 23: Certification: a dynamic market driven by large accounts and new schemes
Certification: a dynamic market driven by large accounts and new schemes # 1 Certification in Latin America Undisputed leadership in main countries (Brazil, Argentina, Chile and Mexico) Service offering 2012-2015 growth drivers ► Quality, Environment, Health & Safety and Social Responsibility Manage
Slide 24: Commodities: our new growth area in Latin America
Commodities: our new growth area in Latin America # 2 in Commodities in Latin America Leading position in Chile minerals market Service offering 2012-2015 growth drivers ► Oil & Chemicals Inspection and Testing: ► Booming demand for commodities Upstream Exploration & Production Downstream fuel c
Slide 25: Automotive: a new scope of services in a fast growing market
Automotive: a new scope of services in a fast growing market # 1 Automotive in Latin America (acquisition of Auto Reg in Jan. 2011) Preferred supplier of main Insurers and car manufacturers Service offering 2012-2015 growth drivers ► Supply chain: ► Fleet Increase and renewal with Transportation d
Slide 26: 2015 priorities for Latin America
2015 priorities for Latin America Double-digit organic growth M&A consolidation ► Explore full potential of investments ► Pursue strategic acquisitions to fill in energy and infrastructure the gaps ► Continue portfolio diversification ► Geographies with Commodities, Automotive and ► Portfolios Infra
Slide 27: Resilience & Innovation: Focus on Europe
FOCUS ON EUROPE RESILIENCE & INNOVATION Philippe Donche-Gay Chief Operating Officer 27
Slide 28: The "Euro Party" might be over?
The “Euro Party” might be over ? ► Loss of momentum in Euro-zone economy ► GDP slowdown, with risk of downturn ► Increasing fiscal imbalance ► Rising government bond yields ► Weaker external demand Source: International Monetary Fund, World Economic Outlook, June 2011 © - Copyright Bureau Veritas 28
Slide 29: Still, Europe remains a core TIC market
Still, Europe remains a core TIC market A “regulatory” Culture ► 27 countries, 510 million inhabitants ► HQ of many Normalization bodies ► #1 world economy ► ~25% of world GDP ► ~30% of Global Fortune 500 ► Proliferation of European Directives ► World largest trading power European legislation publi
Slide 30: A track record of steady profitable growth
A track record of steady profitable growth Organic and external development … Europe Network Casella - UK CEP I&F UK MTL - UK ECA - Spain Inspectorate - UK KW2 - NL 100 Offices 1996 1998 2001 2002 2005 2006 2007 2008 2009 2010 4 100 Staff Consumer I&F Nagtglass - NL Sciro – Italy products Germany Co
Slide 31: Pursuing profitable growth ambition by 2015 with different regional priorities
Pursuing profitable growth ambition by 2015 with different regional priorities Profitability Improvement Overall Operating margin Consolidation Transformation Rightsizing ► Finalize Integrations ► Leverage Mass Market ► Adapt to market demand ► Stabilize Management ► Innovative Offerings ► Leverage
Slide 32: Large TIC growth potential in Europe
Large TIC growth potential in Europe Strong structural growth drivers Growth in Aging Industrial Aging Population/ Eastern Europe Assets Safety Needs Eastern Western New Environmental Outsourcing of Regulations Concerns Public Services © - Copyright Bureau Veritas 32
Slide 33: Potential market share gains in selected European countries
Potential Market share gains in selected European countries ► Privatization of Public Inspection agencies ► Opening of TIC national markets ► Outsourcing of Inspection services ► New deep sea Offshore opportunities © - Copyright Bureau Veritas 33
Slide 34: "Opex" services for industrial assets
“Opex” services for industrial assets Nuclear ► 143 nuclear reactors in Europe Plants ► Plans for extended lifetime – or dismantling ► Regulation reinforcement post Fukushima NDT services for nuclear plant outages Oil ► > 100 refineries in Europe Refineries ► > 60-year average age ► IPPC directive
Slide 35: Leveraging "Green Building" momentum
Leveraging “Green Building” momentum The revised EPB Directive… European & National Regulations ► Reduction in energy consumption ► Key milestones in 2018 and 2020 ► Priority on Public buildings ► Focused financial incentives … will generate additional growth for BV New Constructions Existing Buildi
Slide 36: Adapting to a service-based economy
Adapting to a service-based economy Evolving customer needs… Shift to “services driven” market ► Need to “certify” quality of services ► Role for independent third parties ► New/customized standards … opening potential for new offers Services Certification Personnel Certification © - Copyright Burea
Slide 37: Europe still a backbone of Bureau Veritas global development
Europe still a backbone of Bureau Veritas global development Support to Bureau Veritas global network Technical Innovative Global Expertise production models Clients ► Nuclear ► Construction 10 Major EU accounts 2010 ► Marine France/China Initiative ► Offshore Scheduling & Reporting tools © - Copyri
Slide 38: Bureau Veritas 2015 Strategic Plan
BUREAU VERITAS 2015 STRATEGIC PLAN Tuesday, September 20, 2011 38