Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — Q3 2023 Earnings Presentation
44 slides from Bureau Veritas Sa's earnings presentation, Oct 26, 2023
Slide 1: Q3 2023 Revenue
Q3 2023 REVENUE OCTOBER 25, 2023 1
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 02 04 FINANCIAL OUTLOOK REVIEW 01 03 KEY BUSINESS & HIGHLIGHTS PORTFOLIO REVIEW
Slide 4: Key Highlights
01 KEY HIGHLIGHTS
Slide 5: Q3 2023 €1.4bn revenue highlights
Q3 2023 €1.4bn REVENUE +6.1% at constant currency (2.3)% reported growth ORGANIC GROWTH ׀Sustained strong performance for Marine & Q3 2023 +5.8% Offshore, Industry and Certification ׀Against very strong Q3 last year HIGHLIGHTS EXTERNAL GROWTH ׀Mainly bolt-on acquisitions realized in the pas
Slide 6: Strong 9M organic growth fueled by a diversified mix
STRONG 9M ORGANIC GROWTH FUELED BY A DIVERSIFIED MIX A BALANCED PORTFOLIO FUELING THE GROWTH1 A STRONG FRANCHISE ACROSS ALL CONTINENTS1 Cumulative Cumulative revenue revenue M&O Middle East and Africa DOUBLE-DIGIT DOUBLE-DIGIT 37% IND ORGANIC GROWTH 37% Americas ORGANIC GROWTH Ranging from 11.4% to
Slide 7: CSR Key Performance Indicators
CSR KEY PERFORMANCE INDICATORS 9M 2023 FY 2022 2025 target Total Accident Rate (TAR)1 0.24 0.26 0.26 Proportion of women in leadership positions2 27.5% 29.1% 35.0% Number of training hours per employee (year to date)3 22.9 32.5 35.0 CO2 emissions per employee (tons per year)4 2.39 2.32 2.00 Proporti
Slide 8: Financial Review
a , 0 FINANCIAL REVIEW
Slide 9: Q3 2023 total revenue growth of (2.3)%
Q3 2023 TOTAL REVENUE GROWTH OF (2.3)% REVENUE EVOLUTION VARIATION ANALYSIS In € million +6.1% at constant currency +5.8% +0.3% (8.4)% 1,457.1 1,423.8 1 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentation 9 Q3 2023 REVENUE
Slide 10: 9M 2023 total revenue growth of 4.3%
9M 2023 TOTAL REVENUE GROWTH OF 4.3% REVENUE EVOLUTION VARIATION ANALYSIS In € million +9.1% at constant currency +8.1% +1.0% (4.8)% 4,328.0 4,150.5 1 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentation 10 Q3 2023 REVENUE
Slide 11: Q3 2023 revenue growth by business
Q3 2023 REVENUE GROWTH BY BUSINESS % of @ constant revenue currency 29% Buildings & Infrastructure +0.1% +1.4% +1.5% 21% Agri-Food & Commodities +2.6% +2.6% 22% Industry (1.4)% +16.2% +14.8% 13% Consumer Products +0.9% +0.9% 8% Marine & Offshore +13.4% +13.4% 7% Certification +11.7% +11.7% 100% Tota
Slide 12: 9M 2023 revenue growth by business
9M 2023 REVENUE GROWTH BY BUSINESS % of @ constant revenue currency 30% Buildings & Infrastructure +7.0% +2.0% +9.0% 21% Agri-Food & Commodities +5.1% +5.1% 21% Industry (0.5)% +15.8% +15.3% 12% Consumer Products (2.0)% +4.2% +2.2% 8% Marine & Offshore +14.8% +14.8% 8% Certification +11.4% +11.4% 10
Slide 13: Business & Portfolio Review
03 BUSINESS & PORTFOLIO REVIEW
Slide 14: Marine & Offshore
Key Q3 figures Business highlights MARINE & 41%* Organic Revenue Growth OFFSHORE • New Construction: double-digit • Core In-service: double-digit Strategic investment in OrbitMI, a US- based maritime performance software 8% OF YTD GROUP REVENUE 45%* • Services: high single-digit company 14%* +13.4
Slide 15: A strategic collaboration with OrbitMI
A STRATEGIC COLLABORATION WITH ORBIT MI - a US-based software company ▪ At the heart of shipping decarbonization through operational and voyage optimization ▪ Digital enablement to simplify GHG reporting and performance monitoring ▪ Aim of the partnership: Joint go-to-market solutions to expand cust
Slide 16: Agri-Food & Commodities
Key Q3 figures Business highlights AGRI-FOOD Organic Revenue Growth & 31%* • Oil & Petrochemicals: low-single-digit Onsite lab contract at new nickel mine COMMODITIES 32%* • Metals & Minerals: low-single-digit contraction • Agri-Food: mid-single-digit in West Australia 21% OF YTD GROUP REVENUE 22%
Slide 17: Industry
Key Q3 figures Business highlights Organic Revenue Growth 22%* • Oil & Gas Opex: double-digit Hydrogen lab testing for a Petronor 11%* subsidiary INDUSTRY 14%* • Oil & Gas Capex: double-digit • Power & Utilities: high-single-digit 21% OF YTD GROUP REVENUE 36%* • Non-Energy: double-digit 17%* • Oth
Slide 18: Buildings & Infrastructure
Key Q3 figures Business highlights BUILDINGS Organic Revenue Growth Project management for major & 49%* • Europe: low-single-digit interchange improvement in California INFRASTRUCTURE • Americas: low-single-digit contraction 30% OF YTD GROUP REVENUE 28%* • Asia Pacific: low-single-digit contractio
Slide 19: Certification
Key Q3 figures Business highlights Organic Revenue Growth 36%* Cyber security due diligence and • QHSE: double-digit CERTIFICATION 40%* • Supply Chain & Sustainability: double-digit training services for a leading manufacturer of braking systems in 8% OF YTD GROUP REVENUE • Customized Solutions &
Slide 20: Consumer Products Services
CONSUMER Key Q3 figures Organic Revenue Growth Business highlights PRODUCTS 32%* • Softlines: low-single-digit Safety testing services for an innovative SERVICES 38%* • Hardlines, Toys & Audits: low-single-digit provider of medical equipment for curing cancer 12% OF YTD GROUP REVENUE • Electrical,
Slide 21: Consumer Product Services ongoing diversification
CONSUMER PRODUCT SERVICES ONGOING DIVERSIFICATION 5 OVER THE LAST QUARTERS, GROWTH WAS LED BY M&A AN ONGOING THREE-FOLD DIVERSIFICATION WITH THE AND ORGANIC GROWTH IS NOW STABILIZING PURPOSE OF BUILDING A GLOBAL, SCALABLE NETWORK Growth at constant +4.9% +4.3% +6.0% +1.8% +3.6% +2.5% +0.9% currency
Slide 22: Leading the way in innovative sustainability customer solutions
LEADING THE WAY IN INNOVATIVE SUSTAINABILITY CUSTOMER SOLUTIONS BV GREEN LINE KEY SOLUTIONS LAUNCHED IN Q3 2023 BREAKDOWN OF GROUP SALES IN 9M 2023 Renewable Ammonia scheme 45% Capgemini partnership on scalable 55%* digital tools on clients ESG credentials Sustainable Fuel Management – hydrogen lab
Slide 23: Outlook
04 OUTLOOK
Slide 24: 2023 Outlook confirmed
2023 OUTLOOK CONFIRMED Based on the 9-month performance, a healthy sales pipeline, the significant growth opportunities related to Sustainability and energy transition, Bureau Veritas still expects for full- year 2023 to deliver: A stable Mid-to high- Strong cash adjusted single-digit flow, operatin
Slide 25: Closing remarks
CLOSING REMARKS Strong revenue performance YTD, backed by robust and consistent execution Strategic focus on high growth markets such as sustainability and energy transition Positive medium-term growth and value creation opportunities 25 Q3 2023 REVENUE
Slide 26: Save the date: Capital Markets Day
SAVE THE DATE CAPITAL MARKETS DAY STRATEGY UPDATE WEDNESDAY 20 MARCH 2024 PARIS 26 Q3 2023 REVENUE
Slide 27: Questions & Answers
QUESTIONS & ANSWERS 27 Q3 2023 REVENUE
Slide 28: 2023 Financial Calendar
2023 FINANCIAL CALENDAR Our information is certified with blockchain technology. AGENDA Check that this presentation is genuine at www.wiztrust.com • Full Year 2023 Results: February 22, 2024 • Capital Markets Day: March 20, 2024 • Q1 2024 Revenue: April 25, 2024 Bureau Veritas has been ranked in th
Slide 29: Contacts
CONTACTS I N V E S T O R R E L AT I O N S D E PA R T M E N T BUREAU VERITAS HEAD OFFICE – 40/52 BOULEVARD DU PARC 92200 NEUILLY-SUR-SEINE, FRANCE Laurent Brunelle Head of Investor Relations +33 (0)1 55 24 76 09 laurent.brunelle@bureauveritas.com Colin Verbrugghe Investor Relations Manager +33 (0)1 5
Slide 30: Appendix
—— | APPENDIX
Slide 31: Bureau Veritas' CSR vision is to lead the industry
BUREAU VERITAS’ CSR VISION IS TO LEAD THE INDUSTRY “ Owing to the nature of its services, BV has a two-fold impact on CSR issues ” WITHIN BV FOR CLIENTS thanks to its own thanks to its services supporting CSR strategy CSR commitment All SDGs are impacted with more or less 31 Q3 2023 REVENUE extent b
Slide 32: Bureau Veritas aims to be the leader in non-financial ratings
BUREAU VERITAS AIMS TO BE THE LEADER IN NON-FINANCIAL RATINGS MAIN RATINGS TO NURTURE REPUTATION WITH CLIENTS AND TRUST WITH INVESTORS S&P Global Low risk Advanced Platinum ranked 1st in Research 70/100 76/100 Sustainability Yearbook 2023 August 2022 October 2022 and Consulting subindustry (Professi
Slide 33: Bureau Veritas' Green Line
BUREAU VERITAS’ GREEN LINE OF INDEPENDENT EXPERTISE TO FOSTER A SUSTAINABLE WORLD RESOURCES & PRODUCTION NEW BUILDINGS & MOBILITY RENEWABLES & INFRASTRUCTURE SOCIAL, ETHICS ALTERNATIVE ENERGIES CONSUMPTION E-MOBILITY, & GOVERNANCE ENERGY TRANSITION & TRACEABILITY CONSTRUCTION ALTERNATIVE Onshore and
Slide 34: Selection of BV Green Line services won or delivered in 9M 2023
SELECTION OF BV GREEN LINE SERVICES WON OR DELIVERED IN 9M 2023 RESOURCES & PRODUCTION NEW MOBILITY RENEWABLES & ALTERNATIVE BUILDINGS & E-MOBILITY, SOCIAL, ETHICS CONSUMPTION INFRASTRUCTURE ALTERNATIVE ENERGIES & TRACEABILITY PROPULSION & GOVERNANCE • Key partner in the procurement CONSTRUCTION SOC
Slide 35: Q3 2023 revenue by business
Q3 2023 REVENUE BY BUSINESS REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE IN EUR MILLIONS €m Organic Scope Currency Marine & Offshore 110.0 +13.4% - (8.3)% Marine & Offshore 13% 8% Agri-Food & Commodities Agri-Food & Commodities 305.5 +2.6% - (8.3)% 7% 21% Industry Industry 309.0 +16.
Slide 36: Q3 2023 revenue evolution by geography
Q3 2023 REVENUE EVOLUTION BY GEOGRAPHY REVENUE BY GEOGRAPHIC AREA REVENUE EVOLUTION BY NATURE Organic Scope Asia Americas Pacific 29% 29% Q3 2023 Africa, Middle +19.8% East +0.9% 9% Europe 33% +6.6% +4.8% +1.8% Americas Europe Africa, Asia Pacific Middle East 36 Q3 2023 REVENUE
Slide 37: 9M 2023 revenue by business
9M 2023 REVENUE BY BUSINESS REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE IN EUR MILLIONS €m Organic Scope Currency Marine & Offshore 338.6 +14.8% - (5.3)% Marine & Offshore 12% 8% Agri-Food & Commodities Agri-Food & Commodities 917.1 +5.1% - (4.5)% 8% 21% Industry Industry 927.3 +15.
Slide 38: 9M 2023 revenue evolution by geography
9M 2023 REVENUE EVOLUTION BY GEOGRAPHY REVENUE BY GEOGRAPHIC AREA REVENUE EVOLUTION BY NATURE Organic Scope Asia Americas Pacific 28% 28% +3.7% 9M 2023 Africa, +0.1% +16.3% Middle East 9% +10.3% Europe +7.3% 35% +4.7% Americas Europe Africa, Asia Pacific Middle East 38 Q3 2023 REVENUE
Slide 39: Currency mix in Q3 2023
CURRENCY MIX IN Q3 2023 REVENUE CURRENCY EXPOSURE CURRENCY CHANGE (YEAR ON YEAR) INR JPY SAR SGD TWD AED 1.8% 1.5% 1.2% 1.2% 1.1% 1.9% MXN +11.8% OTHER HKD CLP 17.9% SGD +0.7% 2.3% 2.8% BRL +0.7% GBP PEN +0.5% 3.3% SAR (1.7)% AUD AED (1.8)% 4.4% HKD (1.8)% BRL USD (and pegged) (2.1)% 4.4% Q3 2023 GB
Slide 40: Definition of alternative performance indicators and reconciliation with IFRS (1/5)
DEFINITION OF ALTERNATIVE PERFORMANCE INDICATORS AND RECONCILIATION WITH IFRS (1/5) 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 41: Definition of alternative performance indicators and reconciliation with IFRS (2/5)
DEFINITION OF ALTERNATIVE PERFORMANCE INDICATORS AND RECONCILIATION WITH IFRS (2/5) 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 42: 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 43: Ownership and market data at September 30, 2023
OWNERSHIP AND MARKET DATA AT SEPTEMBER 30, 2023 A mettre à jour REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE • Listed on Euronext-Paris • Ticker: BVI • ISIN: FR0006174348 Wendel group • IPO on October 2007: €9.44/share 35.5% • Share Price1: €23.51 The Capital Group • Market Cap.1: €1
Slide 44: www.bureauveritas.com
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