Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — Q1 2020 Earnings Presentation
32 slides from Bureau Veritas Sa's earnings presentation, Apr 23, 2020
Slide 1: Q1 2020 Revenue
Q1 2020 REVENUE APRIL 23, 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 FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK APPENDIX
Slide 4: Highlights
BUREAU VERITAS HIGHLIGHTS
Slide 5: Q1 2020 highlights
Q1 2020 highlights ORGANIC REVENUE GROWTH OF -1.6% • 3 out of 6 businesses grew organically, Marine & Offshore by 8.7%, Industry by 2.9% and Agri-Food & Commodities by 0.2% • Buildings & Infrastructure (B&I) was broadly stable at -0.2%, showing the benefit of the REVENUE €1.14bn geographical diversi
Slide 6: Bureau Veritas is acting proactively against Covid-19
Bureau Veritas is acting proactively against Covid-19 In many sectors, Bureau Veritas’ services, both in the field and via remote technological channels, contribute to maintaining operational activities that are critical to ensuring people’s health and safety Portfolio of dedicated services aimed at
Slide 7: Bureau Veritas took the lead to weather this unprecedented crisis
Bureau Veritas took the lead to weather this unprecedented crisis Cancellation of the dividend due to proposed for the 2019 FY Solid financial position • Exceptional decision to cancel the dividend (EUR 0.56 per share) Solid financial structure with sufficient liquidity and financial resources: due
Slide 8: Financial Review
FINANCIAL REVIEW
Slide 9: Q1 2020 total revenue growth of -3.0%
Q1 2020 total revenue growth of -3.0% REVENUE EVOLUTION VARIATION ANALYSIS (1.9)% at constant currency 1,175.1 1,139.5 (1.6)% (0.3)% (1.1)% Q1 2019 Organic 1 Scope Currency Q1 2020 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentation
Slide 10: Q1 2020 revenue growth by business
Q1 2020 revenue growth by business % of @ constant revenue currency 28% Buildings & Infrastructure (1.7)% (0.2)% (1.9)% 24% Agri-Food & Commodities 0.2% 0.4% +0.6% 22% Industry 2.9% +2.9% 11% Consumer Products (18.3)% 0.1% (18.2)% 8% Marine & Offshore 8.7% +8.7% 7% Certification (7.9)% 0.6% (7.3)% 1
Slide 11: Business Review
USINESS EVIEW BUREAU VERITAS
Slide 12: Marine & Offshore (8% of revenue)
Marine & Offshore (8% of revenue) KEY FINANCIALS Q1 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q1 2020 Q1 2019 Var. • New Construction: double-digit growth, across most geographies, and notably in North East Double-digit growth Revenue 94.4 87.3 +8.1% Asia (and South Korea in particular) in New Con
Slide 13: Marine market perspective
Marine market perspective WORLDWIDE NEW SHIP ORDERS BUREAU VERITAS NEW SHIP ORDER BOOK IN MGT IN NUMBER OF SHIPS, FOR SHIPS ABOVE 5,000 GT 120 Bulk 100 Tanker Gas 80 Offshore 1996-2019 annual average Passenger 60 Container Cargo 40 Other 20 • A very diversified order book 0 Source: Clarksons (March
Slide 14: Agri-Food & Commodities (24% of revenue)
Agri-Food & Commodities (24% of revenue) KEY FINANCIALS Q1 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q1 2020 Q1 2019 Var. • O&P: low single-digit organic growth Similar performances in both Trade and Revenue Organic 272.7 274.9 (0.8)% +0.2% Upstream activities Agri-Food sub-segment Acquisitions +0
Slide 15: Industry (22% of revenue)
Industry (22% of revenue) KEY FINANCIALS Q1 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q1 2020 Q1 2019 Var. • Oil & Gas Capex: stable growth with strong developments in the United States, Latin Revenue 253.3 255.8 (1.0)% America (apart from Brazil) and Africa, being OPEX P&U Organic +2.9% offset by
Slide 16: Buildings & Infrastructure (28% of revenue)
Buildings & Infrastructure (28% of revenue) KEY FINANCIALS Q1 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q1 2020 Q1 2019 Var. Construction-related activities (36% of divisional revenue): double-digit decline Revenue 318.2 323.8 (1.7)% United States Organic (0.2)% • Major organic growth decline in (
Slide 17: Certification (7% of revenue)
Certification (7% of revenue) KEY FINANCIALS Q1 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q1 2020 Q1 2019 Var. • Most geographies experienced negative organic growth with the exception of a few countries Revenue Organic 76.6 83.2 (7.9)% (7.9)% which were less affected by containment Portfolio dive
Slide 18: Consumer Products (11% of revenue)
Consumer Products (11% of revenue) KEY FINANCIALS Q1 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q1 2020 Q1 2019 Var. • E&E: growth in line with divisional average. Very weak performances for Electrical Revenue 124.3 150.1 (17.2)% Automotive and slightly better for Mobile testing South East Asia Org
Slide 19: Outlook
OUTLOOK
Slide 20: 2020 Outlook
Option 2 2020 Outlook Bureau Veritas continues to take every necessary action to protect the health of its employees and, where possible, of its clients, suppliers, and subcontractors. The Group’s businesses around the world have activated their business continuity plans and have implemented remote
Slide 21: Appendix
Te28 BUREAU VERITAS APPENDIX
Slide 22: Q1 2020 revenue by business
Q1 2020 revenue by business REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE Q1 2020 IN EUR MILLIONS €m Organic Scope Currency Marine & Offshore 94.4 +8.7% - (0.6)% Marine & Offshore 11% 8% 7% Agri-Food & Commodities Agri-Food & Commodities 272.7 +0.2% +0.4% (1.4)% 24% Industry Industry
Slide 23: Revenue by geography
Revenue by geography REVENUE BY GEOGRAPHIC AREA REVENUE GROWTH BY NATURE Organic Scope Asia Americas Pacific 26% 26% 1.3% 4.6% 5.5% (14.7)% 5.0% 5.5% 0.8% 3.0% Africa, (0.4)% Middle (1.7)% East 10% (15.5)% Europe 38% Americas Europe Africa, Asia Pacific Middle-East Q1 2020 REVENUE 23
Slide 24: Forex impact in Q1 2020
Forex impact in Q1 2020 REVENUE CURRENCY EXPOSURE CURRENCY CHANGE Y/Y OTHER 12.9% USD (and pegged) +3.0% MXN 0.9% CNY (0.4)% PEN 1.0% GBP +1.2% RUB 1.1% EUR 30.9% COP 1.3% AUD (5.0)% TWD 1.4% CAD +1.9% KRW 1.5% BRL (13.0)% SGD 1.6% CLP (14.6)% INR 1.9% JPY +4.2% JPY 2.5% Q1 2020 INR +0.2% CLP 2.5% S
Slide 25: Bureau Veritas portfolio repositioning provides for an enhanced resiliency
Bureau Veritas portfolio repositioning provides for an enhanced resiliency 2019 PORTFOLIO BY NATURE OF SERVICES IN PERCENTAGE OF GROUP REVENUE Capex B&I US Opex & Systems B&I China Repeat business with long term B&I Europe = 22% visibility and high retention rates, mainly driven by regulation and Oi
Slide 26: Well diversified sources of financing with a balanced maturity profile
Well diversified sources of financing with a balanced maturity profile DEBT MATURITY PROFILE AS OF DEC. 31, 2019 DEBT BREAKDOWN AS OF DEC. 31, 2019 Already refinanced 2%1% 4% Bond 6% 178 USPP 89 Schuldschein Bond China Loan 24% USPP Fixed rate Other Schuldschein China Loan Floating rate 44 Other 67%
Slide 27: Bureau Veritas continues to support its clients in their CSR 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 28: 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 29: 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 30: 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 31: 2020 Financial Calendar & Contacts
2020 Financial Calendar & Contacts INVESTOR RELATIONS DEPARTMENT 2020 AGENDA BUREAU VERITAS HEAD OFFICE – 40/52 BOULEVARD DU PARC 92200 NEUILLY-SUR-SEINE, FRANCE Shareholders’ Meeting – June 26, 2020 Laurent Brunelle H1 2020 Results – July 28, 2020 (after market close) Head of Investor Relations +33
Slide 32: Bureau Veritas - Shaping a World of Trust
BUREAU |BUREAU | Shaping a World of Trust