Bureau Veritas Sa · EURONEXT:BVI

Bureau Veritas Sa — Q1 2016 Earnings Presentation

27 slides from Bureau Veritas Sa's earnings presentation, May 12, 2016

  1. Slide 1: Q1 Trading update

    Q1 Trading update May 12, 2016 © Copyright Bureau Veritas

  2. Slide 2: Agenda

    Agenda Q1 Highlights Business review Outlook Q&A Appendix May 12, 2016 / Q1 2016 trading update / © Copyright Bureau Veritas

  3. Slide 3: Q1 Highlights

    Q1 Highlights • Stable revenue at constant currencies • Acquisitions, partnerships and commercial wins to support growth plan May 12, 2016 / Q1 2016 trading update / © Copyright Bureau Veritas

  4. Slide 4: Q1 2016 revenue growth

    Q1 2016 revenue growth (EUR m) +0.2% 1,106.4 +0.8% 1,059.4 (0.6)% (4.4)% Q1 2015 Organic Acquisitions Currencies Q1 2016 4 May 12, 2016 / Q1 2016 trading update / © Copyright Bureau Veritas

  5. Slide 5: Q1 2016 revenue growth by business

    Q1 2016 revenue growth by business % @ constant revenue currencies 14% IVS XX% 5.1% +5.1% 13% Construction 0.8% 4.1% +4.9% 14% Consumer Products XX% X% 1.6% 2.4% +4.0% 7% Certification XX% 3.6% +3.6% 17% Commodities XX% 1.6% +1.6% 9% Marine & Offshore 1.2% 0.4% +1.6% 6% GSIT (5.2)% (5.2)% 21% Indust

  6. Slide 6: Acquisitions & Partnerships since January

    Acquisitions & Partnerships since Jan. 4 acquisitions, supporting growth initiatives Date Footprint 2015 Revenue BUILDING & INFRASTRUCTURE HCD February UK €10 m CHINA Chongqing Liansheng March China €30 m AGRI-FOOD DTS* April Australia €35 m MARINE & OFFSHORE TMC May UK €8.5 m ~€84 m of annualized r

  7. Slide 7: Business review

    Business review May 12, 2016 / Q1 2016 trading update / © Copyright Bureau Veritas

  8. Slide 8: Marine & Offshore

    Marine & Offshore Positive growth, mixed trends across activities Revenue evolution Q1 2016 Highlights (EUR m) ● In-Service (58% of revenue) +1.2% +0.4% (2.8)% - Fleet up 6% in GT 98.9 97.7 - Risk assessment slowdown (Offshore) +1.6% @cc ● New construction (42%) - Equipment certification slowdown ●

  9. Slide 9: Acquisition: TMC

    Acquisition: TMC Completing portfolio with a leading international marine consultancy FY 14 Highlights Assets ● Founded in 1979 ● Strong expertise on a wide range of marine issues, ● Headquartered in London, international network notably Marine salvage ● 50 employees ● Market recognition: longstandi

  10. Slide 10: Industry

    Industry O&G impact, mitigated by country/ sector diversification Revenue evolution Q1 2016 Highlights (EUR m) 262.5 ● Oil & Gas impact on growth (8.1)% 0.0% 221.9 - Americas, Australia: CAPEX decline (7.4)% - Middle-East resilient ● Power resilient - Europe ● Yamal project in Asia Q1'15 Organic Cur

  11. Slide 11: In-Service Inspection & Verification

    In-Service Inspection & Verification Robust growth across geographies Revenue evolution Q1 2016 Highlights (EUR m) +5.1% 144.4 ● Europe strong: Energy directive, contract wins 140.7 (2.5)% ● North America rebound: - US healthy market, new services - Canada stabilizing ● Asia, Middle-East expansion Q

  12. Slide 12: Construction

    Construction Geographical diversification, organically and through acquisitions Revenue evolution Q1 2016 Highlights (EUR m) +4.1% 133.2 ● France growth supported by OPEX activities 130.5 0.5 +0.8% (2.8)% ● China development - Acquisition of Chongqing Liansheng +4.9% @cc - Strong Power, offsetting l

  13. Slide 13: Acquisition: Chongqing Liansheng

    Acquisition: Chongqing Liansheng Consolidating our platform in the Chinese domestic market FY 14 Highlights Assets ● Founded in 1994 ● Regional leader in Southwest China ● Headquartered in Chongqing - Chongqing population: 33 m ● Over 900 employees ● Strong technical expertise in construction superv

  14. Slide 14: Acquisition: HCD

    Acquisition: HCD Strengthening our building compliance offering in the UK FY 14 Highlights Assets ● Founded in 1993 ● Leading provider of building compliance services in the UK ● Headquartered in Cardiff ● Comprehensive range of services ● 88 employees ● Broad customer base: construction companies ●

  15. Slide 15: Certification

    Certification Solid growth and commercial successes Revenue evolution Q1 2016 Highlights (EUR m) +3.6% ● Mixed trends in Europe 79.0 78.7 - ISO transition in ramp-up phase (4.0)% - Solid growth in Italy, Germany, E. Europe ● RoW very dynamic - Commercial initiatives in North America, the Middle-East

  16. Slide 16: Government Services & International Trade

    Government Services & International Trade Volume drop in Iraq and countries dependent on commodities Revenue evolution Q1 2016 Highlights (EUR m) ● Government contracts lower volumes (5.2)% 64.5 (4.4)% - End of Ghana PSI 58.3 - Lower activity with mining companies - Single Windows ramp-up ● VOC grow

  17. Slide 17: Consumer Products

    Consumer Products Organic growth recovery, expansion in targeted geographies Revenue evolution Q1 2016 Highlights (EUR m) +2.4% 143.4 140.5 +1.6% ● Progressive recovery started end 2015 (1.9)% - Organic growth of ~4% excluding two key accounts +4.0% @cc ● China domestic growth: Toys, Automotive, Sof

  18. Slide 18: Commodities

    Commodities Growth in Trade and strong Agri, further decline in Upstream M&M FY 14 Revenue evolution Q1 2016 Highlights (EUR m) +1.6% ● O&P outperforming market growth 189.8 1.1 181.8 ● M&M usptream further decline (5.8)% - pricing pressure, mix ● M&M trade overall resilient ● Agri double-digit grow

  19. Slide 19: Acquisition: DTS

    Acquisition: DTS Securing the leading position in Agri-Food testing in Australia FY 14 Highlights Assets ● Founded in 1954 ● Leading position in Australia ● Headquartered in Melboume ● Large range of services, Dairy expertise ● 4 labs ● Strong client base: longstanding partnerships with the largest

  20. Slide 20: Outlook

    Outlook May 12, 2016 / Q1 2016 trading update / © Copyright Bureau Veritas

  21. Slide 21: Outlook 2016 unchanged

    Outlook 2016 unchanged The global macroeconomic environment is likely to remain highly volatile in 2016, with persistent weakness in Oil & Gas and Minerals. Thanks to the diversified and balanced portfolio, the Group expects: ● Organic revenue growth ranging from 1 to 3% - Progressive improvement in

  22. Slide 22: Q&A

    Q&A May 12, 2016 / Q1 2016 trading update / © Copyright Bureau Veritas

  23. Slide 23: Appendix

    Appendix May 12, 2016 / Q1 2016 trading update / © Copyright Bureau Veritas

  24. Slide 24: Q1 2016 Revenue by business

    Q1 2016 Revenue by business Growth 2016 2015 Total Organic Scope FX Marine & Offshore 97.7 98.9 (1.2)% 1.2% 0.4% (2.8)% Industry 221.9 262.5 (15.5)% (8.1)% - (7.4)% IVS 144.4 140.7 2.6% 5.1% - (2.5)% Construction 133.2 130.5 2.1% 0.8% 4.1% (2.8)% Certification 78.7 79.0 (0.4)% 3.6% - (4.0)% Commodit

  25. Slide 25: Ownership at March 31, 2016

    Ownership at March 31, 2016 1.1% Treasury shares 40.1% Wendel 56.9% Managers and employees 1.9% Free float 25 May 12, 2016 / Q1 2016 trading update / © Copyright Bureau Veritas

  26. Slide 26: Revenue by main currency

    Revenue by main currency Q1 2016 revenue by functional currency Q1 2016 vs Q1 2015 @average rates Other 16% USD 2.2% CNY (2.6)% Euro 30% ARS 1% GBP (3.5)% INR 2% (7.9)% KRW 2% CAD SGD 2% AUD (6.4)% JPY 2% BRL (25.1)% CLP 3% CLP (9.1)% JPY 5.6% BRL 3% SGD (1.3)% AUD 3% (6.4)% KRW CAD 4% INR (5.8)% AR

  27. Slide 27: 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

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