Arcadis Nv · EURONEXT:ARCAD
Arcadis Nv — H1 2022 Earnings Presentation
21 slides from Arcadis Nv's earnings presentation, Jul 28, 2022
Slide 1: Solid set of results and continued strong client demand
Solid set of results and continued strong client demand Arcadis Q2 and half year 2022 Results July 28, 2022
Slide 2: Disclaimer
Disclaimer Statements included in this presentation that are not historical facts The forward-looking statements are based upon our current (including any statements concerning investment objectives, other expectations, plans, estimates, assumptions and beliefs that involve plans and objectives of m
Slide 3: Q2 & half year 2022 results key messages
Part 1 Q2 & half year 2022 results key messages Peter Oosterveer | Chief Executive Officer
Slide 4: Strong growth and improved performance
Summary of results Strong growth and improved performance Second quarter 2022 results: Organic net revenue growth Strong backlog underlines client Operating EBITA margin improved accelerates1) demand1) 8.1% 5.9% 9.3% (last year: 9.1%) © Arcadis 2022 | Q2 & Half Year 2022 Results 1) Underlying growth
Slide 5: Resilience
Global Business Areas Resilience Second quarter 2022 results: CLIENT DEMAND CASE STUDY Organic net revenue growth • Environmental restoration: remediation oil & gas clients, tightening regulation PFAS 8.5% • Water optimization: digital twins, energy efficiency, water savings Climate mitigation & car
Slide 6: Places
Global Business Areas Places Second quarter 2022 results: CLIENT DEMAND CASE STUDY Organic net revenue growth • Net Zero Facilities and Intelligent Buildings • Industrial Manufacturing: 5.1% • Life Sciences • Automotive • Technology Designing a 130,000 sq. ft. • Resilient public transport facilities
Slide 7: Mobility
Global Business Areas Mobility Second quarter 2022 results: CLIENT DEMAND CASE STUDY Organic net revenue growth • Connected Highways and Intelligent Rail: efficiency & reliability of travel, reducing 11.1% disruption and congestion • New Mobility, e.g.: EV wiring charging network development Scaling
Slide 8: Acquisition of IBI Group: Fully aligns with our strategy
Acquisition of IBI Group: Fully aligns with our strategy Development of new Highly complementary Strengthened position in Enhances capabilities and digitally enabled client combination strengthening highly attractive offering in Places solutions through the all Arcadis GBAs in Canadian market creati
Slide 9: Creating a new 4th GBA to Maximize Our Digital Impact
Creating a new 4th GBA to Maximize Our Digital Impact Role of the 4th GBA Intelligence GBA Digital Client Solutions Innovation Driving Efficiency Recurring Revenue and Productivity Attractive Suite of Combined Client Solutions Resilience Places Mobility New fourth GBA: Intelligence © Arcadis 2022 |
Slide 10: Our Combined GBA Structure Will Allow Clients to Benefit
Our Combined GBA Structure Will Allow Clients to Benefit from Our High Complementarity and Strengthens our Position in North America Resilience Places Mobility Intelligence APAC 15% EMEA 48% ~€2.6bn ~38% ~37% ~22% ~3% Americas 37% • Climate resilience 41% • Design & engineering 34% • Intelligent rai
Slide 11: Financial Results
Part 2 Financial Results Virginie Duperat | Chief Financial Officer
Slide 12: Good growth and margin improvement
Good growth and margin improvement Half year 2022 results €1,418M 6.9% (HY’21: €1,276M) Net Revenue Organic Net Revenue growth1) €133M 9.3% (HY’21: €116 M) (HY’21: 9.1%) Operating EBITA Operating EBITA margin 13.3% €283M (HY’21: 14.3%) (HY’21: €368M) Net Working Capital Net Debt % 2021 figures have
Slide 13: Accelerated revenue and backlog growth
Accelerated revenue and backlog growth Net Revenues and Organic Growth1) Operating EBITA (margin)2) € millions, % € millions, % 8.1% 10.7% 6.3% 4.8% 5.3% 5.6% 9.5% 9.4% 9.1% 9.3% 652 688 729 60 70 64 68 644 636 58 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Days Sales Outstanding and
Slide 14: Resilience: Solid growth and strong financial results
Resilience Solid growth and strong financial results Resilience CASE STUDY 42% of net revenues in € millions Half year Second quarter Period ended 30 June 2022 2022 2021 change 2022 2021 change Net revenues 589 513 14.9% 308 261 17.8% Organic net revenue growth (%)1) 7.7% 8.5% Operating EBITA 60 55
Slide 15: Places: Good revenue growth for second quarter, improved margin
Places Good revenue growth for second quarter, improved margin Places CASE STUDY 33% of net revenues in € millions Half year Second quarter Period ended 30 June 2022 2022 2021 change 2022 2021 change Net revenues 463 447 3.7% 235 228 3.1% Organic net revenue growth (%)1) 3.1% 5.1% Operating EBITA 41
Slide 16: Mobility: Very strong results driven by larger markets
Mobility Very strong results driven by larger markets Mobility CASE STUDY 25% of net revenues in € millions Half year Second quarter Period ended 30 June 2022 2022 2021 change 2022 2021 change Net revenues 366 317 15.4% 187 155 20.2% Organic net revenue growth (%)1) 10.2% 11.1% Operating EBITA 35 33
Slide 17: Generating 16% EPS growth
Strong operational performance Generating 16% EPS growth In € millions H1 2022 H1 20213) change EBITA 130 113 14% Amortization & impairment EBIT -5 125 -6 108 16% 14% EBITA growth Net finance expense -6 -13 Taxes on income -34 -20 Effective income tax rate1) 28% 20% €93 Exp. credit gain (loss) share
Slide 18: Sound cash management supporting seasonal FCF generation
Sound cash management supporting seasonal FCF generation In € millions 2022 20211) EBITDA 178 165 • Lower Net Working Changes in net working capital -113 -61 starting point 2022 has Changes in other working capital led to higher cash -17 17 outflow compared to Tax paid -21 -33 2021 Net interest paid
Slide 19: Wrap up
Part 3 Wrap up Peter Oosterveer | Chief Executive Officer
Slide 20: Summary
Summary • Sustained good client demand • Solid strategic progress • Revenue growth, margin improvement and strengthened balance sheet • Continued focus and investments in Digital and People • Stabilized attrition and improved engagement • On track to deliver on 2023 strategic targets © Arcadis 2022
Slide 21: Q&A
Q&A