Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — H1 2013 Earnings Presentation
45 slides from Bureau Veritas Sa's earnings presentation, Aug 28, 2013
Slide 1: Half-Year Results 2013
2013 HALF-YEAR RESULTS August 28, 2013
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
Slide 3: Agenda
Agenda HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES
Slide 4: Highlights
Didier Michaud-Daniel Chief Executive Officer HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES
Slide 5: H1 2013 operating performance
H1 2013 operating performance (EUR) Revenue 1.958Bn +7.5%(1) Organic growth +4.7% Adjusted operating margin 16.0% +10 bps Adjusted EPS 0.44 +2.3% Operating cash flow 221.5 +54.5% (1) At constant currencies © - Copyright Bureau Veritas August 28, 2013 5
Slide 6: Geographical exposure
Geographical exposure ► Fast growing zones(1) 55% Europe Middle East Africa ► 61,300 employees(2) Russia 14,800 employees 8,900 employees 34% 15% Americas 16,400 employees Asia Pacific 21,200 employees 24% 27% % of H1 2013 Group revenue (1) Latin America, Eastern Europe, the Middle East, Africa, Pac
Slide 7: Portfolio of businesses
Portfolio of businesses H1 2013 Revenue Adjusted operating profit GSIT Marine GSIT 8% 7% Marine 9% 12% Consumer Products 12% Consumer Industry Products 18% 24% Industry Commodities 21% 17% Commodities 12% Certification IVS 12% IVS 8% 9% Certification Construction Construction 11% 10% 8% IVS: In-Serv
Slide 8: Four acquisitions announced since January 2013
Four acquisitions announced since January 2013 Combined annual revenues of EUR ~70m 7Layers A global leader in SmartWorld / Wireless testing FY12 Rev: EUR ~24m A fast growing market driven by innovation in the Machine to Machine (M2M) and Employees: 220 telecommunications sectors LVQ-WP Strategic ND
Slide 9: Financial Review
Sami Badarani Chief Financial Officer HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES
Slide 10: Summary income statement
Summary income statement (EUR millions) H1 2013 H1 2012 Change Revenue 1,957.5 1,861.6 +5.1% Adjusted operating profit (1) 313.2 295.6 +6.0% Adjusted operating margin 16.0% 15.9% +10bps Other operating expenses (30.1) (35.9) Operating profit 283.1 259.7 +9.0% Net financial expense (33.7) (28.2) Inco
Slide 11: H1 2013 revenue
H1 2013 revenue (EUR millions) +3.8% +4.7% 1,957.5 1,861.6 (1.0)% (2.4)% +8.5% H1 2012 Organic Acquisitions Disposals Currencies H1 2013 Q2 2013 +4.7% +2.3% (0.9)% (2.7)% © - Copyright Bureau Veritas August 28, 2013 11
Slide 12: Adjusted operating profit
Adjusted operating profit (EUR millions) H1 2013 H1 2012 Change Operating profit 283.1 259.7 +9.0% Amortization of acquisition intangibles 26.4 27.2 Spain related items 3.5 8.0 Acquisitions & disposals 0.2 0.7 Total other operating expenses 30.1 35.9 (16.2)% Adjusted operating profit 313.2 295.6 +6.
Slide 13: Adjusted operating profit by business
Adjusted operating profit by business (EUR millions) H1 2013 Change H1 2013 VLY margin (bps) Industry 68.1 +15.0 14.6% +130 Consumer Products 55.9 +8.5 22.9% - GSIT 29.8 +2.7 20.4% (100) IVS 24.4 +1.9 10.5% +100 Construction 25.4 +1.3 11.9% +110 Certification 30.4 +0.6 17.9% +40 Commodities 39.7 (4.
Slide 14: Adjusted operating profit
Adjusted operating profit (EUR millions) 24.4 313.2 295.6 (6.8) Rest of Minerals business H1 2012 H1 2013 Margin 15.9% (30)bps +40bps 16.0% © - Copyright Bureau Veritas August 28, 2013 14
Slide 15: Net financial expense
Net financial expense (EUR millions) H1 2013 H1 2012 Change Net finance cost (30.1) (23.9) (6.2) Foreign exchange losses (1.2) (0.7) (0.5) Interest cost on pension plans (1.6) (2.3) +0.7 Other financial expenses (0.8) (1.3) +0.5 Net financial expense (33.7) (28.2) (5.5) © - Copyright Bureau Veritas
Slide 16: Adjusted net profit
Adjusted net profit (EUR millions) H1 2013 H1 2012 Change Profit before income tax 249.3 231.5 +7.7% Income tax expense (73.0) (65.4) Non controlling interests (6.1) (5.3) Attributable net profit 170.2 160.8 +5.8% Other operating expenses 30.1 35.9 Tax effect on other operating expenses (7.8) (7.5)
Slide 17: Summary cash flow statement
Summary cash flow statement (EUR millions) H1 2013 H1 2012 Change Profit before income tax 249.3 231.5 +7.7% Elimination of financing and investing activities 31.4 28.2 Provisions and other non-cash items 2.4 (9.4) Depreciation, amortization and impairment 73.8 78.8 Movements in working capital (71.
Slide 18: Adjusted net financial debt
Adjusted net financial debt (1) (EUR millions) 55.8 19.6 1,386.0 207.6 1,150.7 63.8 111.5 Dec. 2012 Levered free Acquisitions Dividends Stock options/ Other Jun-13 cash flow Share buybacks (1) Net financial debt after currency hedging instruments as defined for the Group’s covenants calculation © -
Slide 19: Optimized leverage ratio
Optimized leverage ratio (1) 2.51 1.89 1.94 1.93 1.83 1.78 1.6 1.59 1.38 Jun-08 Dec-08 Dec-09 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 ► Available facilities at June 30, 2013: EUR 390.5m ► Almost all debts have maturities > 2015 (1) Adjusted net financial debt / EBITDA (earnings before interest, ta
Slide 20: Summary financial position
Summary financial position (EUR millions) Jun. 2013 Jun. 2012 Goodwill 1,457.6 1,572.2 Net fixed assets 752.4 767.0 Working capital (WC) 361.3 352.2 Total Capital employed 2,571.3 2,691.4 Total equity 992.1 1,146.2 Adjusted net financial debt 1,386.0 1,318.4 Other 193.2 226.8 Total Capital resources
Slide 21: Business Review
Didier Michaud-Daniel Chief Executive Officer HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES
Slide 22: Marine
Marine BV marine new orders (GRT millions) (EUR millions) Order book Quaterly new orders intake Revenue 24.0 160.7 (9.6)% 22.3 20.8 145.3 18.0 17.5 16.3 15.2 14.4 H1’12 H1’13 2.8 1.9 1.6 1.5 1.0 0.8 1.2 1.0 Margin 29.5% 27.2% Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 H1 2013 Highlights 2013 Ou
Slide 23: Industry
Industry H1 revenue breakdown (EUR millions) North America Latin America +16.5% 466.7 9% 33% Revenue 400.5 Europe Fast 25% growing H1’12 H1’13 66% Middle East, India, Asia Pacific Margin 13.3% 14.6% Russia, Africa 19% 14% H1 2013 Highlights 2013 Outlook 10.9% organic revenue growth Continuous growth
Slide 24: In-service Inspection & Verification (IVS)
In-service Inspection & Verification (IVS) H1 revenue breakdown (EUR millions) Revenue 237.9 (2.6)% France Other Europe 231.7 29% 53% H1’12 H1’13 USA 5% Margin 9.5% 10.5% Fast growing 13% H1 2013 Highlights 2013 Outlook (0.5)% organic revenue growth Improved organic growth Resilience in Western Euro
Slide 25: Construction
Construction H1 revenue breakdown (EUR millions) Fast growing (4.8)% 18% Revenue 224.1 France 213.3 Japan 52% 8% H1’12 H1’13 USA 16% Other Europe Margin 10.8% 11.9% 6% H1 2013 Highlights 2013 Outlook 1.5% organic revenue growth (Q2 at +3.4%) Limited decrease in France Limited decrease in France Reco
Slide 26: Certification
Certification H1 revenue breakdown (EUR millions) Middle East, India, North America Revenue 3% Russia, Africa 170.1 +0.1% 170.2 13% Europe 55% Asia Pacific H1’12 H1’13 17% Margin 17.5% 17.9% Latin America 12% H1 2013 Highlights 2013 Outlook 2.4% organic revenue growth Recovering organic growth Slowd
Slide 27: Commodities
Commodities H1 revenue breakdown (EUR millions) Agri +1.6% 339.9 9% Oil&Petrochemicals Revenue 334.5 (O&P) Coal 14% 38% H1’12 H1’13 Metals&Minerals Margin 13.2% 11.7% (M&M) 39% H1 2013 Highlights 2013 Outlook 2.7% organic revenue growth Growth in O&P and Agri: new capabilities and geographical expan
Slide 28: Consumer Products
Consumer Products H1 revenue breakdown (EUR millions) Textiles, Electrical & Revenue +17.7% Electronics (E&E) 244.0 garments 207.3 & Softlines 30% 41% H1’12 H1’13 Toys & Hardlines Margin 22.9% 22.9% 29% H1 2013 Highlights 2013 Outlook 10.6% organic revenue growth Continuous growth across segments So
Slide 29: Government Services & International Trade
Government Services & International Trade H1 revenue breakdown General Trade Government Revenue +15.7% contracts 146.4 & Auto 126.5 30% 45% H1’12 H1’13 Verification of conformity Margin 21.4% 20.4% 25% H1 2013 Highlights 2013 Outlook 16.0% organic revenue growth High basis of comparison in H2 Increa
Slide 30: Outlook
Didier Michaud-Daniel Chief Executive Officer HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES
Slide 31: Outlook
Outlook ► 2013 Outlook The Group should deliver solid growth in 2013 revenue and adjusted operating profit, despite an ongoing challenging economic environment in Europe and in minerals. 2013 H2 organic growth should be in-line with H1. The priority is to continue improving profitability. ► The Grou
Slide 32: Agenda
Agenda HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES
Slide 33: Appendices
Agenda HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES
Slide 34: Revenue by business
Revenue by business 2013 Q2 2013 First-Half EURm Organic Scope FX EURm Organic Scope FX Marine 76.3 (8.4)% +0.1% (1.3)% 145.3 (8.6)% +0.1% (1.1)% 243.0 +11.0% +5.0% (4.2)% 466.7 +10.9% +9.4% (3.8)% Industry IVS 115.1 (1.0)% (1.3)% (1.3)% 231.7 (0.5)% (1.2)% (0.9)% 108.1 +3.4% (5.2)% (3.0)% 213.3 +1.
Slide 35: Adjusted operating profit by business
Adjusted operating profit by business Adj. operating profit Adj. operating margin (EUR millions) H1’13 H1’12 Change H1’13 H1’12 Change Marine 39.5 47.4 (16.7)% 27.2% 29.5% (230) bps Industry 68.1 53.1 +28.2% 14.6% 13.3% +130 bps IVS 24.4 22.5 +8.4% 10.5% 9.5% +100 bps Construction 25.4 24.1 +5.4% 11
Slide 36: Consolidated income statement
Consolidated income statement (EUR millions) H1 2013 H1 2012 Revenue 1,957.5 1,861.6 Purchase and external charges (560.4) (542.4) Personnel costs (1,018.0) (954.2) Taxes other than on income (25.3) (34.5) Net (additions to)/reversals of provisions (5.5) 4.4 Depreciation and amortization (73.8) (70.
Slide 37: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income (EUR millions) H1 2013 H1 2012 Net profit 176.3 166.1 Currency translation differences (98.9) 37.2 Cash-flow hedges (2.5) 2.3 Income tax on items reclassified to profit or loss 0.9 (0.8) Total of other comprehensive income reclassified to profit or loss
Slide 38: Consolidated financial position
Consolidated financial position (EUR millions) June 2013 Dec. 2012 Goodwill 1,457.6 1,486.3 Intangible assets 361.8 385.4 Property, plant and equipment 390.6 379.4 Other non-current assets 168.6 179.2 Total non-current assets 2,378.7 2,430.3 Trade and other receivables 1,137.9 1,060.5 Other current
Slide 39: Statement of change in equity
Statement of change in equity Attributable to (EUR millions) Currency Shareholders Share Share Other Total Minority translation of the capital premium reserves equity interests reserves Company December 31, 2012 13.3 115.3 83.9 955.3 1,167.5 1,144.5 23.3 Capital reduction 39.8 (39.8) - - - - - Exerc
Slide 40: Cash flow statement
Cash flow statement (EUR millions) H1 2013 H1 2012 Profit before income tax 249.3 231.5 Elimination of cash flows from financing and investing activities 31.4 28.2 Provisions and other non-cash items 2.4 (9.4) Depreciation, amortization and impairment 73.8 78.8 Movements in working capital attributa
Slide 41: Details of adjusted net financial debt calculation
Details of adjusted net financial debt calculation (EUR millions) June 2013 Dec. 2012 Bank borrowings (non-current) 1,284.3 1,282.7 Bank borrowings (current) 273.0 119.6 Bank overdrafts 46.7 8.7 Gross financial debt 1,604.0 1,411.0 Total cash and cash equivalents 226.1 243.5 Net financial debt 1,377
Slide 42: Currency exposure
Currency exposure As of May 31, 2013 Revenue currency split Translation impact - Key currencies Euro Group Other 1% Euro Group Operating 31% Revenue 32% Change vs. Profit Impact Impact USD 0.12% 0.13% AUD 0.06% 0.03% BRL CNY 0.05% 0.11% 4% JPY USD 2%CNY BRL 0.04% 0.03% 12% 5% AUD GBP HKD HKD 0.04% 0
Slide 43: Earnings per share
Earnings per share (EUR per share) H1 2013 H1 2012 Change Basic EPS(1) 0.39 0.36 +8.3% Diluted EPS(2) 0.38 0.36 +5.6% Basic adjusted EPS(1) 0.44 0.43 +2.3% Diluted adjusted EPS(2) 0.43 0.42 +2.4% Following the one to four split of the share on June 21, 2013, 2012 figures have therefore been restated
Slide 44: Shareholder structure
Shareholder structure Market capitalization of EUR10Bn at August 26, 2013 Ownership structure (1) Treasury shares Free Float 1.0% Wendel 46.3% 50.9% Employees Managers 0.6% 1.2% (1) as of July 31, 2013 © - Copyright Bureau Veritas August 28, 2013 44
Slide 45: Bureau Veritas - Move Forward with Confidence
BUREAU VERITAS Move Forward with Confidence