Bureau Veritas Sa · EURONEXT:BVI

Bureau Veritas Sa — H1 2012 Earnings Presentation

46 slides from Bureau Veritas Sa's earnings presentation, Aug 28, 2012

  1. Slide 1: 2012 Half-Year Results

    2012 HALF-YEAR RESULTS August 28, 2012

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains forward-looking statements which are based on current plans and forecasts of Bureau Veritas’ management. Such forward-looking statements are by their nature subject to a number of important risk and uncertainty factors such as those described in the Document de

  3. Slide 3: Agenda

    Agenda HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES 3

  4. Slide 4: Highlights

    Didier Michaud-Daniel Chief Executive Officer HIGHLIGHTS 4

  5. Slide 5: Very strong start to the year

    Very strong start to the year ► Double digit growth in key financial indicators +14.7% +13.9% +15.2% +47.8% Revenue 1,861.6 Adj. operating profit Adj. net income Operating cash-flow 295.6 1,622.8 189.2 259.5 143.4 164.2 97.0 H1’11 H1’12 H1’11 H1’12 H1’11 H1’12 H1’11 H1’12 ► 8.1% organic revenue grow

  6. Slide 6: A balanced portfolio of businesses

    A balanced portfolio of businesses H1 2012 Revenue Adjusted operating profit GSIT Marine GSIT 7% 9% Marine 9% 16% Consumer Products 11% Consumer Industry Products 16% 21% Industry Commodities 18% 18% Commodities 15% Certification IVS 13% IVS 8% 9% Certification Construction Construction 12% 10% 8% I

  7. Slide 7: Increased exposure to fast growing zones

    Increased exposure to fast growing zones H1 2012 revenue breakdown EMEA 49% ~22,500 staff Americas 23% Asia Pacific 28% ~16,200 staff ~19,300 staff Mature countries 48% Fast growing zones (1) 52% (1) Latin America, Asia ex. Japan, Pacific , Eastern Europe, the Middle East and Africa © - Copyright Bu

  8. Slide 8: Increased momentum for acquisitions

    Increased momentum for acquisitions ► 12 acquisitions completed since beginning of year ► EUR 200m of combined annual revenues: representing 6% of FY 2011 Group revenue ► Aligned with BV2015 strategic plan Geographic footprint Adjacent services, new accreditations and expertise Key client penetratio

  9. Slide 9: Financial Review

    Sami Badarani Chief Financial Officer FINANCIAL REVIEW 9

  10. Slide 10: Summary income statement

    Summary income statement (EUR millions) H1 2012 H1 2011 Change Revenue 1,861.6 1,622.8 +14.7% Adjusted operating profit (1) 295.6 259.5 +13.9% Adjusted operating margin 15.9% 16.0% (10)bps Other operating expense (35.9) (17.5) Operating profit 259.7 242.0 +7.3% Net financial expense (28.2) (28.4) In

  11. Slide 11: Revenue

    Revenue (EUR millions) +3.4% 1,861.6 +3.2% +8.1% 1,622.8 +14.7% H1 2011 Organic External Currency H1 2012 Q2 2012 +7.6% +5.1% +4.5% © - Copyright Bureau Veritas August 28, 2012 11

  12. Slide 12: H1 2012 Revenue by business

    H1 2012 Revenue by business (EUR millions) Revenue Total growth o/w Organic Industry 400.0 +28.1% +17.5% Commodities ~50% 334.5 +26.8% +13.8% GSIT 126.5 +22.6% +21.3% Consumer Products 207.3 +12.7% +5.3% Certification ~30% 169.7 +8.4% +6.0% IVS 238.8 +6.1% +4.3% Construction 224.1 +2.6% (3.0)% ~20%

  13. Slide 13: Adjusted operating profit

    Adjusted operating profit (EUR millions) H1 2012 H1 2011 Change Operating profit 259.7 242.0 +7.3% Amortization of acquisition intangibles 27.2 17.9 +9.3 Goodwill impairment 8.0 - +8.0 Acquisitions & disposals 0.7 (0.4) +1.1 Total other operating expenses 35.9 17.5 +18.4 Adjusted operating profit 29

  14. Slide 14: H1 2012 Margin by business

    H1 2012 Margin by business Adj. operating profit Adj. operating margin EURm % VLY (bps) Industry 53.2 13.3% +140 Commodities 44.2 13.2% +130 GSIT 27.1 21.4% +240 IVS 22.5 9.4% +60 Construction 24.1 10.8% (10) Marine 47.3 29.4% (140) Consumer Products 47.4 22.9% (250) Certification 29.8 17.6% (270) T

  15. Slide 15: Net financial expense

    Net financial expense (EUR millions) H1 2012 H1 2011 Change Finance costs, net (23.9) (18.9) (5.0) Foreign exchange gains / (losses) (0.7) (6.7) +6.0 Interest cost on pension plans (2.3) (2.1) (0.2) Other financial income / (expense) (1.3) (0.7) (0.6) Net financial expense (28.2) (28.4) +0.2 © - Cop

  16. Slide 16: Adjusted net profit

    Adjusted net profit (€ millions) H1 2012 H1 2011 Change Attributable net profit 160.8 151.4 +6.2% Goodwill impairment - Spain 8.0 - “Other” 27.9 17.5 Total other operating expenses 35.9 17.5 Tax effect on goodwill impairment - Spain - - Tax effect on “other” (1) (7.5) (4.7) Total tax effect on other

  17. Slide 17: Summary cash flow statement

    Summary cash flow statement (EUR millions) H1 2012 H1 2011 Change Profit before income tax 231.5 213.7 +8.3% Elimination of financing and investing activities 28.2 21.7 Provisions and other non-cash items (9.4) (11.4) Depreciation, amortization and impairment 78.8 54.2 Movements in working capital (

  18. Slide 18: Adjusted net financial debt

    Adjusted net financial debt (1) (EUR millions) 17.4 1,318.4 143.9 12.3 229.6 983.9 68.7 Net Debt at Levered free Acquisitions Dividends Stock Other Net Debt at Dec. 2011 cash flow options/ June 2012 Share buybacks (1) Net financial debt after currency hedging instruments as defined for the Group’s c

  19. Slide 19: Optimized leverage ratio

    Optimized leverage ratio (1) 2.51 1.78 1.94 1.93 1.89 1.60 1.38 1.31 June 08 Dec 08 Dec 09 June 10 Dec 10 June 11 Dec 11 June 12 (1) Adjusted net financial debt / EBITDA (earnings before interest, tax, depreciation, amortization and provisions) adjusted for all units acquired over the past 12 months

  20. Slide 20: Summary financial position

    Summary financial position (EUR millions) Jun. 2012 Jun. 2011 Goodwill 1,572.2 1,301.8 Net fixed assets 767.0 610.0 Working capital (1) 352.2 289.4 Total Capital employed 2,691.4 2,327.2 Total equity 1,146.2 838.8 Adjusted net financial debt 1,318.4 1,156.0 Provisions for other liabilities and charg

  21. Slide 21: Business Review

    Didier Michaud-Daniel Chief Executive Officer BUSINESS REVIEW 21

  22. Slide 22: Marine: low level of new orders balanced by fleet in-service expansion

    Marine: low level of new orders balanced by fleet in-service expansion (EUR millions) (GRT millions) Revenue +0.6% 160.7 Fleet in-service Order book 159.7 86 89 68 77 58 65 55 H1’11 H1’12 30 36 31 29 22 17 18 Margin 30.8% 29.4% Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Jun 12 H1 2012 Highlights 2012

  23. Slide 23: Industry: continuous growth driven by energy demand and fast growing geographies

    Industry: continuous growth driven by energy demand and fast growing geographies (EUR millions) H1 2012 revenue breakdown North America +28.1% 400.0 Others Latin America Oil & Gas 8% Revenue 312.2 20% 28% Transport 40% 2% Europe 27% Services H1’11 H1’12 4% Process 10% MIRA Equipment 15% Asia Margin

  24. Slide 24: IVS: resilient business, improving profitability

    IVS: resilient business, improving profitability (EUR millions) H1 2012 revenue breakdown +6.1% France 238.8 52% Revenue 225.0 H1’11 H1’12 USA 5% Fast growing zones Margin 8.8% 9.4% 13% H1 2012 Highlights 2012 Outlook 4.3% organic revenue growth Resilient organic growth in mature countries and Doubl

  25. Slide 25: Construction: fast growing countries offsetting slowdown in Europe

    Construction: fast growing countries offsetting slowdown in Europe (EUR millions) Doubling fast growing share since 2008 +2.6% Fast growing Revenue 218.4 224.1 14% Japan 9% USA H1’11 H1’12 15% Other Europe Margin 10.9% 10.8% 3% H1 2012 Highlights 2012 Outlook Organic revenue down 3.0% Slowdown in Eu

  26. Slide 26: Certification: managing the transition from traditional QHSE to new schemes

    Certification: managing the transition from traditional QHSE to new schemes (EUR millions) H1 2012 revenue breakdown Japan Training & Other +8.4% 18% Asia Pacific 6% 169.7 QHSE Revenue 156.5 11% Europe 49% 55% MIRA Sustainability 12% H1’11 H1’12 13% Latin America Supply Chain 12% Margin 20.3% 17.6%

  27. Slide 27: Commodities: Sustained growth and margin expansion

    Commodities: Sustained growth and margin expansion (EUR millions) H1 2012 revenue breakdown 334.5 Agri 10% Oil &Petrochemicals +26.8% Coal (O&P) Revenue 13% 34% 263.9 H1’11 H1’12 Metals & Minerals (M&M) Margin 11.9% 13.2% 43% H1 2012 Highlights 2012 Outlook 13.8% organic revenue growth Sustained gro

  28. Slide 28: Consumer Products: Growth acceleration and product mix evolution

    Consumer Products: Growth acceleration and product mix evolution (EUR millions) H1 2012 revenue breakdown +12.7% 207.3 Electrical & Electronics 183.9 Textiles, garments (E&E) Revenue & Softlines 25% 42% H1’11 H1’12 Toys & Hardlines 33% Margin 25.4% 22.9% H1 2012 Highlights 2012 Outlook 5.3% organic

  29. Slide 29: GSIT: excellent performance driven by new contracts

    GSIT: excellent performance driven by new contracts (EUR millions) H1 2012 revenue breakdown Europe General Trade Government 4% & Auto contracts +22.6% 126.5 Americas 28% 55% Revenue 103.2 17% H1’11 H1’12 Africa Verification of Middle East 56% conformity & Asia Margin 19.0% 21.4% 23% 17% H1 2012 Hig

  30. Slide 30: Outlook

    OUTLOOK BUREAU VERITAS 30

  31. Slide 31: Outlook

    Outlook ► Outlook Considering H1 achievements and despite challenging economic environment, the Group should deliver strong growth in 2012 revenue and adjusted operating profit, in-line with BV2015 strategic plan. ► BV2015 Financial objectives for 2012-2015 Revenue (1) : +9-12% / year on average 6-8

  32. Slide 32: Q&A

    Q&A BUREAU VERITAS 32

  33. Slide 33: Appendices

    APPENDICES BUREAU VERITAS 33

  34. Slide 34: Revenue by business

    Revenue by business Q2 2012 H1 2012 EURm EURm Organic Organic Scope Scope FX FX EURm Organic Scope FX Marine 82.8 84.4 +5.2% (2.2)% -- +0.3% +4.4% 160.7 (2.8)% - +3.4% 194.3 217.1 +16.4% +14.9% +1.7% +12.3% (1.4)% +4.1% 400.0 +17.5% +7.2% +3.4% Industry IVS 124.5 120.9 +2.3% +3.3% - +0.3% (0.3)% +2.

  35. Slide 35: Adjusted operating profit by business

    Adjusted operating profit by business Adj. operating profit Adj. operating margin (EUR millions) H1’12 H1’11 Change H1’12 H1’11 Change Marine 47.3 49.2 (3.9)% 29.4% 30.8% (140) bps Industry 53.2 37.1 +43.4% 13.3% 11.9% +140 bps IVS 22.5 19.8 +13.6% 9.4% 8.8% +60 bps Construction 24.1 23.9 +0.8% 10.8

  36. Slide 36: Consolidated income statement

    Consolidated income statement (EUR millions) H1 2012 H1 2011 Revenue 1,861.6 1,622.8 Purchase and external charges (542.4) (469.8) Personnel costs (954.2) (839.8) Taxes other than on income (34.5) (32.2) Net (additions to)/reversals of provisions 4.4 12.4 Depreciation and amortization (70.7) (54.2)

  37. Slide 37: Consolidated statement of comprehensive income

    Consolidated statement of comprehensive income (EUR millions) H1 2012 H1 2011 Net profit 166.1 155.5 Other comprehensive income Currency translation differences 37.2 (75.5) Actuarial gains / losses (0.9) - Cash-flow hedges 2.3 7.9 Income tax on other comprehensive income 2.3 (2.7) Total other compre

  38. Slide 38: Consolidated financial position

    Consolidated financial position (EUR millions) Jun. 2012 Dec. 2011 Goodwill 1,572.2 1,378.3 Intangible assets 407.9 333.0 Property, plant and equipment 359.1 319.6 Other non-current assets 225.3 184.9 Total non-current assets 2,564.5 2,215.8 Trade and other receivables 1,134.3 974.4 Other current as

  39. Slide 39: Statement of change in equity

    Statement of change in equity Attributable to (EUR millions) Currency shareholders minority Share Share translation Other Total of the interests capital premium reserves reserves equity Company December 31, 2011 13.3 147.0 103.9 820.0 1,084.2 1,065.4 18.8 Exercise of stock options 8.3 - - 8.3 8.3 -

  40. Slide 40: Cash flow statement

    Cash flow statement (EUR millions) H1 2012 H1 2011 Profit before income tax 231.5 213.7 Elimination of cash flows from financing and investing activities 28.2 21.7 Provisions and other non-cash items (9.4) (11.4) Depreciation, amortization and impairment 78.8 54.2 Movements in working capital attrib

  41. Slide 41: Details of adjusted net financial debt calculation

    Details of adjusted net financial debt calculation (EUR millions) Jun. 2012 Dec. 2011 Bank borrowings (non-current) 1,347.9 999.4 Bank borrowings (current) 245.9 253.0 Bank overdrafts 19.3 13.2 Gross financial debt 1,613.1 1,265.6 Total cash and cash equivalents 245.0 244.1 Net financial debt 1,368.

  42. Slide 42: Currency exposure

    Currency exposure As of May 31, 2012 Revenue currency split Key Sensitivities Other 26% Group Euro 1% Euro Group Operating Revenue 33% Change vs. Profit Impact Impact USD 0.15% 0.21% BRL AUD 0.07% 0.05% 5% JPY 2% CNY 0.05% 0.08% CNY 5% AUD BRL 0.05% 0.04% USD 7% GBP HKD 15% 3% 4% HKD 0.04% 0.06% © -

  43. Slide 43: Earnings per share

    Earnings per share (EUR per share) H1 2012 H1 2011 Change Basic EPS(1) 1.46 1.39 +5.0% Diluted EPS(2) 1.44 1.37 +5.1% Basic adjusted EPS(1) 1.72 1.51 +13.9% Diluted adjusted EPS(2) 1.69 1.48 +14.2% (1) Calculated on weighted average number of shares of 110,167,701 in June 2012 and 108,951,467 in Jun

  44. Slide 44: Acquisitions completed year-to-date

    Acquisitions completed year-to-date Name Date Description Country Pockrandt Jan. 12 Non Destructive Testing Germany Acme Feb. 12 Metals & Minerals Testing Canada HuaXia Feb. 12 Construction compliance conformity China ACR Feb. 12 Infrastructure compliance conformity France JCS Feb. 12 Food laborator

  45. Slide 45: Shareholder structure

    Shareholder structure Market capitalization of EUR 8 bn at August 27, 2012 Ownership structure (1) Treasury shares Free Float 0.3% Wendel 46.5% 50.8% Employees Managers 0.7% 1.7% (1) as of August 27, 2012 (after capital reduction) © - Copyright Bureau Veritas August 28, 2012 45

  46. Slide 46: Bureau Veritas - Move Forward with Confidence

    BUREAU Move Forward with Confidence

Bureau Veritas — H1 2012 Earnings Presentation on 6ix