Slide 1: Q3/9m Revenue
Q3/9m Revenue October 18, 2016 © Copyright Bureau Veritas
Slide 2: Agenda
Agenda Q3/9m Highlights Business review Outlook Q&A Appendix
Slide 3: Q3/9m Highlights
Q3/9m Highlights • Resilient revenue, improvement delayed due to market-specific headwinds: • Marine robust H1, Q3 showing earlier than expected impact from shipping cycle downturn • Persistent weakness in Oil & Gas • Accelerating growth in Consumer Products and Certification • Recovering trends in
Slide 4: Acquisition signed – Closing pending: Shanghai Project Management
Acquisition signed – Closing pending: Shanghai Project Management FY 14 Consolidating our Chinese platform in the non-residential construction project supervision Highlights Assets ● Founded in 1993 by Tongji University, and ● Strong expertise in mandatory construction privatized in 2003 project sup
Slide 5: Q3 2016 revenue growth
Q3 2016 revenue growth (EUR m) +1.7% 1,143.0 +2.7% 1,136.4 (1.0)% (2.3)% Q3 2015 Organic* Acquisitions Currencies Q3 2016 • Organic growth is the increase in revenue versus last year, at constant currency and scope (i.e. acquisitions excluded) 5 October 18, 2016 / Q3 2016 revenue / © Copyright Burea
Slide 6: 9m 2016 revenue growth
9m 2016 revenue growth (EUR m) +1.0% 3,461.7 +1.8% 3,357.7 (0.8)% (4.0)% 9m 2015 Organic* Acquisitions Currencies 9m 2016 • Organic growth is the increase in revenue versus last year, at constant currency and scope (i.e. acquisitions excluded) 6 October 18, 2016 / Q3 2016 revenue / © Copyright Burea
Slide 7: Q3 2016 revenue growth by business
Q3 2016 revenue growth by business % @ constant revenue currencies 7% Certification 7.6% 0.1% +7.7% 15% Consumer Products 4.5% 2.9% +7.4% 19% Commodities XX% X% 3.9% 4.8% +8.7% 13% IVS XX% 3.7% +3.7% 13% Construction XX% (1.6)% 8.5% +6.9% 5% GSIT (4.1)% 1.2% (4.1%) 20% Industry (9.0)% 1% (8.0)% 8% M
Slide 8: 9m 2016 revenue growth by business
9m 2016 revenue growth by business % @ constant revenue currencies 8% Certification 6.1% 0.1% +6.1% 13% IVS 4.7% 0.0% +4.7% 14% Consumer Products XX% X% 3.0% 2.6% +5.6% 18% Commodities XX% 2.1% 2.1% +4.2% 13% Construction XX% (0.3)% 7.4% +7.1% 9% Marine & Offshore (1.2)% 1.5% +0.3% 5% GSIT (4.2)% (4
Slide 9: 9m 2016: BV 2020 Growth Initiatives gaining traction
9m 2016: BV 2020 Growth Initiatives gaining traction Activities under the 8 Growth (in € millions) V2 Initiatives 59 -140 3,462 -97 71* 3,358 -2.9pts +2.1pts O&G M&M Capex Upst. GSIT Rest of activities -0.3pts -0.3pts -0.7pts -1.6pts YTD Sep. Organic Acquisitions Currency YTD Sep. 2015 impact 2016 9
Slide 10: Business review
Business review October 18, 2016 / Q3 2016 revenue / © Copyright Bureau Veritas
Slide 11: Marine & Offshore
Marine & Offshore Turning negative Q3 Revenue evolution Q3 2016 Highlights (EUR m) ● In-Service (58% of revenue) -9.8% - Fleet up YTD in GT vs. surge in vessels put 101.6 into lay-up +1.9% -1.5% 92.0 - Continuous strong decline in Offshore ● New construction (42%) - Weak market environement, notably
Slide 12: Industry
Industry O&G impact, mitigated by country/ sector diversification Q3 Revenue evolution Q3 2016 Highlights (EUR m) ● Oil & Gas impact on growth 255.0 -9.0% +1.0% -3.5% 225.7 - Americas, Australia: strong double-digit capex- related decline - Europe procurement: double-digit decline - Middle-East grow
Slide 13: In-Service Inspection & Verification
In-Service Inspection & Verification North America driving growth Q3 Revenue evolution Q3 2016 Highlights (EUR m) 146.7 +3.7% -3.1% 145.9 ● Europe growth slowdown - Challenging comparison base in the UK - France lower growth ● North America accelerating - US healthy market, new services - Canada tur
Slide 14: Construction
Construction France mixed trends Q3 Revenue evolution Q3 2016 Highlights (EUR m) ● Growth slowdown in Q3 in France: +8.5% +0.2% 150.1 140.2 -1.6% - End of regulatory drivers (APAD and Energy) that boosted France opex over past quarters -Capex trending up ● China O&G still under pressure ● Japan resi
Slide 15: Certification
Certification Solid growth and commercial successes Q3 Revenue evolution Q3 2016 Highlights (EUR m) +7.6% -2.9% 80.4 76.7 ● Good growth across the board - Europe mixed trends - Solid growth in the Americas and in Asia ● Strong growth in food, supplier audits, brand protection Q3'15 Organic Currencie
Slide 16: Government Services & International Trade
Government Services & International Trade VOC growth mitigating volume decrease in government contracts Q3 Revenue evolution Q3 2016 Highlights (EUR m) ● Government contracts lower volumes 64.5 -4.1% -1.0% 61.2 - Completion of Ghana PSI - Oil & gas impacting Western Africa - Single Windows slow ramp
Slide 17: Consumer Products
Consumer Products Organic growth recovery, expansion in targeted geographies Q3 Revenue evolution Q3 2016 Highlights (EUR m) +2.9% -1.9% 165.7 +4.5% 157.0 ● Confirmed recovery - Improving trends in Hardlines, E&E with 2 key accounts annualizing - Robust growth in Softlines - Auto testing: high doubl
Slide 18: Commodities
Commodities Rebound in Upstream M&M FY 14 Q3 Revenue evolution Q3 2016 Highlights (EUR m) +4.8% -2.5% 214.6 202.1 +3.9% ● O&P resilient, slowdown vs. high comps ● M&M usptream positive (+3.1%) - volume growth in Australia (gold notably) ● M&M trade overall resilient ● Agri-food continuous double-dig
Slide 19: Outlook
Outlook October 18, 2016 / Q3 2016 revenue / © Copyright Bureau Veritas
Slide 20: Updated outlook 2016
Updated outlook 2016 FY 2016 organic revenue growth expected to be slightly negative, primarily due to Marine shortfall and persistent Oil & Gas capex weakness Consequently, FY2016 adjusted operating margin lowered to the 16.0%-16.5% range, amongst the highest in the TIC industry FY 2016 cash
Slide 21: Q&A
Q&A October 18, 2016 / Q3 2016 revenue / © Copyright Bureau Veritas
Slide 22: Appendix
Appendix October 18, 2016 / Q3 2016 revenue / © Copyright Bureau Veritas
Slide 23: Q3 2016 Revenue by business
Q3 2016 Revenue by business Growth 2016 2015 Total Organic Scope FX Marine & Offshore 92.0 101.6 (9.4%) (9.8%) 1.9% (1.5%) Industry 225.7 255.0 (11.5%) (9.0%) 1.0% (3.5%) IVS 146.7 145.9 0.6% 3.7% - (3.1%) Construction 150.1 140.2 7.1% (1.6%) 8.5% 0.2% Certification 80.4 76.7 4.8% 7.6% 0.1% (2.9%) C
Slide 24: 9M 2016 Revenue by business
9M 2016 Revenue by business Growth 2016 2015 Total Organic Scope FX Marine & Offshore 295.7 303.8 (2.7%) (1.2%) 1.5% (3.0%) Industry 674.4 797.2 (15.4%) (9.5%) 0.3% (6.2%) IVS 440.1 433.0 1.6% 4.7% - (3.1%) Construction 433.2 411.8 5.2% (0.3%) 7.4% (1.9%) Certification 252.9 247.6 2.2% 6.1% - (3.9%)
Slide 25: Revenue by main currency
Revenue by main currency 9m 2016 revenue by functional currency 9m 2016 vs 9m 2015 @average rates OTHER 13% USD (and pegged) -0.2% TRY 1% CNY -5.2% COP 1% ARS 1% EURO 29% CAD -4.8% INR 2% GBP -9.5% TWD 2% AUD -2.8% KRW 2% BRL -10.9% SGD 2% CLP -5.9% JPY 2% SGD -0.6% CLP 3% JPY 11.4% KRW -3.3% BRL 3%
Slide 26: 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