Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — Investor Day (December 2021)
67 slides from Bureau Veritas Sa's investor day presentation, Dec 3, 2021
Slide 1: Investor Day 3 Dec. 2021
DAY 3 DEC. 2021 BUREAU VERITAS
Slide 2: 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 DISCLAIMER are based on current plans and forecasts of Bureau Veritas’ management
Slide 3: Presenters
Didier Michaud-Daniel Chief Executive Officer Eduardo Camargo Ségolène de Rose Helen Bradley François Chabas Executive Senior Executive Executive Vice-President Vice-President Vice-President Vice-President Group Tranformation Group Strategy & M&A Human Resources Finance & Business Development 3 INVE
Slide 4: Bureau Veritas Mission: Shaping a World of Trust by Ensuring Responsible Progress
BUREAU VERITAS MISSION: SHAPING A WORLD OF TRUST BY ENSURING employees RESPONSIBLE PROGRESS Thanks to our unrivalled expertise, independence and worldwide presence, Bureau Veritas supports its clients by managing quality, safety, health and in revenue sustainability risks, to the benefit of society
Slide 5: Agenda
AGENDA 3 1 ENABLERS 5 INTRODUCTION 2 4 FINANCIAL AMBITION CONCLUSION 6 APPENDIX STRATEGIC DIRECTION 5 INVESTOR DAY
Slide 6: Introduction
1 INTRODUCTION 6 INVESTOR DAY
Slide 7: A Stronger BV Compared to 2015
A STRONGER BV COMPARED TO 2015 7 INVESTOR DAY
Slide 8: A Profound Portfolio Transformation from 2015 to 2020
A PROFOUND PORTFOLIO KEY AREAS TRANSFORMATION OF TRANSFORMATION FROM 2015 TO 2020 Improved Capex mix − Creation of a €200m B&I platform on the Chinese infrastructure end-market, supported by long term trends − Reduction of Oil & Gas Capex exposure (from c.10% of revenue IN % OF GROUP REVENUE (2020)
Slide 9: Examples of Key Changes within the Portfolio Throughout the 2015 Strategic Plan
EXAMPLES OF KEY CHANGES WITHIN THE PORTFOLIO THROUGHOUT THE 2015 STRATEGIC PLAN IN % OF GROUP REVENUE (2020) IN % OF GROUP REVENUE (2020) MARINE & AGRI-FOOD & OFFSHORE COMMODITIES INDUSTRY Americas Asia Pacific 23% 31% 8% 22% 21% BUILDINGS & CONSUMER INFRASTRUCTURE CERTIFICATION PRODUCTS Africa, Mid
Slide 10: A More Efficient Organization
A MORE EFFICIENT ORGANIZATION KEY AREAS DIVERSE EXECUTIVE O F T R A N S F OR MAT I O N LEADERSHIP TEAM A highly talented Executive Committee − International team with broad-based skills and diverse profiles − More balanced in terms of gender − A tightly knit team with a client centric approach − Bal
Slide 11: A Stronger BV through Commitment to Society and Digital
A STRONGER BV THROUGH COMMITMENT TO SOCIETY AND DIGITAL STATE OF THE ART EMPOWERING A PEOPLE BUSINESS DIGITAL TOOLS THANKS TO COMMITMENT TO SOCIETY A boost in profitability of existing services, Positioned as a Business to Business to Society company through the use of platforms or drones for exampl
Slide 12: BV: A Business to Business to Society Company
BV: A BUSINESS TO BUSINESS TO SOCIETY COMPANY INTERNALLY … Inspires action for each of our stakeholders EXTERNALLY … expresses the core of our mission and purpose INSPIRED BY − Positive impact on society Better workplace − Need for transparency Better environment − Responsible progress Better busine
Slide 13: Bureau Veritas Is Committed to Shaping a Better World
BUREAU VERITAS IS COMMITTED TO SHAPING A BETTER WORLD Strategic axes Sustainability Social & Human capital Natural capital Governance pillars 13 INVESTOR DAY
Slide 14: Bureau Veritas' Green Line of Independent Expertise
BUREAU VERITAS’ GREEN LINE OF INDEPENDENT EXPERTISE TO FOSTER A SUSTAINABLE WORLD RESOURCES & PRODUCTION NEW MOBILITY RENEWABLES & BUILDINGS E-MOBILITY, ALTERNATIVE ENERGIES & INFRASTRUCTURE ALTERNATIVE SOCIAL, ETHICS CONSUMPTION PROPULSION ENERGY TRANSITION & GOVERNANCE Onshore and offshore Wind Fa
Slide 15: Strategic Framework
STRATEGIC FRAMEWORK 2025 OBJECTIVE Capture maximum value from existing and adjacent businesses and lead the TIC evolution towards sustainable growth VALUE DRIVERS SCALE EXPAND LEAD MARKET VERTICALS Buildings & Energy Agri-Food & Consumer Marine & Certification Infrastructure (O&G + P&U) Commodities
Slide 16: Strategic Overarching Themes
STRATEGIC OVERARCHING THEMES ASSET LIFECYCLE SUSTAINABILITY TECHNOLOGY & SOLUTIONS ASSURANCE ONLINE RETAIL ENERGY TRANSITION CYBERSECURITY CONFORMITY COMPLIANCE ASSESSMENT 16 INVESTOR DAY
Slide 17: Strategic Direction
2 STRATEGIC DIRECTION 17 INVESTOR DAY
Slide 18: Enormous Market Potential
ENORMOUS MARKET POTENTIAL TIC WORTH OUTSOURCED TOP 5 UNDERLYING MARKET TIC COMPANIES SHARE AVERAGE GROWTH 18 INVESTOR DAY
Slide 19: Powerful Megatrends Supporting the Development of the TIC Sector
POWERFUL MEGATRENDS SUPPORTING THE DEVELOPMENT OF THE TIC SECTOR URBANIZATION FURTHER SUPPLY CHAINS INCREASED HEALTH & HYGIENE GROWTH ACCELERATION RECONFIGURATION FOCUS ON ESG GLOBAL AWARENESS UNCHANGED OF DIGITALIZATION Better infrastructure Trade wars and Platformization Societal aspiration Increa
Slide 20: A Journey Towards Value Creation
A JOURNEY TOWARDS CAPTURE VALUE MAXIMUM CREATION VALUE FROM EXISTING AND ADJACENT BUSINESSES AND LEAD THE TIC EVOLUTION TOWARDS SUSTAINABLE GROWTH 20 INVESTOR DAY
Slide 21: How to Capture Value
HOW TO CAPTURE VALUE OUR EXISTING MAKING THE RIGHT THE EVOLUTION BUSINESS CHOICES AMONG OF THE TIC O R G A N I C A L LY GROWTH OPPORTUNITIES BUSINESS 21 INVESTOR DAY
Slide 22: Scale
SCALE Capture the maximum value of our existing assets, capabilities and geographies STRENGHTENING THE GROWTH Boost organic growth and maintain high margins MUSCLE 22 INVESTOR DAY
Slide 23: Scale: How
SCALE HOW REPLICATION SALES OPERATIONAL EXCELLENCE PERFORMANCE 23 INVESTOR DAY
Slide 24: Expand
EXPAND Making the right choices to capture growth in selected buoyant markets. CAPTURING GROWTH FROM NEW Maintain high margins through MARKET OPPORTUNITIES increased penetration in selected high value markets 24 INVESTOR DAY
Slide 25: Expand: Where
EXPAND WHERE SUSTAINABILITY ENERGY CROSS-CUTTING TRANSITION GROWTH OPPORTUNITIES 25 INVESTOR DAY
Slide 26: Lead
LEAD Lead the evolution of the TIC business UNLOCK THE GROWTH Increase footprint POTENTIAL in high margin technology OF TOMORROW services 26 INVESTOR DAY
Slide 27: Lead: Where
LEAD WHERE CYBERSECURITY CONNECTIVITY TRACEABILITY 27 INVESTOR DAY
Slide 28: Enablers
ENABLERS PEOPLE ORGANIZATION INNOVATION & & & CULTURE GOVERNANCE DIGITAL 28 INVESTOR DAY
Slide 29: Strategic Framework
STRATEGIC FRAMEWORK 2025 OBJECTIVE Capture maximum value from existing and adjacent businesses and lead the TIC evolution towards sustainable growth VALUE DRIVERS SCALE EXPAND LEAD MARKET VERTICALS Buildings & Energy Agri-Food & Consumer Marine & Certification Infrastructure (O&G + P&U) Commodities
Slide 30: M&A Priorities
M&A PRIORITIES GAINING LOCAL EXPLORING LICENSES TO FUTURE TIC OPERATE SPACES OFFERING FULL SOLUTIONS 30 INVESTOR DAY
Slide 31: Strategic Overarching Themes
STRATEGIC OVERARCHING THEMES 31 INVESTOR DAY
Slide 32: Asset Life Cycle Solutions
ASSET LIFE CYCLE SOLUTIONS 32 INVESTOR DAY
Slide 33: Asset Life Cycle: Infrastructure Opex
ASSET LIFE CYCLE INFRASTRUCTURE OPEX ITALY CONCESSIONARIES FOR TOLL MOTORWAYS OF HIGHWAYS COORDINATION OF UNDER CONCESSION INFRASTRUCTURE ASSETS 33 INVESTOR DAY
Slide 34: Asset Life Cycle: Buildings Capex, Jihua Hospital
ASSET LIFE CYCLE BUILDINGS CAPEX JIHUA HOSPITAL IS THE FOURTH MOST CHINA POPULOUS CITY IN CHINA WITH 17.4 MILLION INHABITANTS & FROM DESIGN TO CONSTRUCTION 34 INVESTOR DAY
Slide 35: Sustainability Assurance
SUSTAINABILITY ASSURANCE 35 INVESTOR DAY
Slide 36: Sustainability Assurance: Clarity
SUSTAINABILITY ASSURANCE CLARITY ONE OF THE WORLD'S LARGEST RETAILERS WITH MORE THAN FRANCE IN OVER ASSESSMENT OF SUSTAINABILITY WITHIN THEIR MANAGEMENT WOOD SUPPLY SOLUTION CHAIN + FORESTRY EXPERTISE 36 INVESTOR DAY
Slide 37: Sustainability Assurance: Clarity
SUSTAINABILITY ASSURANCE CLARITY ACCOR OPERATES IN MORE THAN FRANCE IN OVER …WITH A TOTAL CAPACITY OF ASSESSMENT APPROXIMATELY OF SUPPLIERS 37 INVESTOR DAY
Slide 38: Energy Transition Conformity Assessment
ENERGY TRANSITION CONFORMITY ASSESSMENT 38 INVESTOR DAY
Slide 39: Energy Transition: Wind & Solar
ENERGY TRANSITION WIND & SOLAR UNITED STATES IN OFFSHORE WIND POWER PROJECT MANAGEMENT & WIND & SOLAR CONSTRUCTION MANAGEMENT 39 INVESTOR DAY
Slide 40: Energy Transition: Hydrogen
ENERGY TRANSITION HYDROGEN PUBLIC SERVICE UNITED COMPANY WITH ELECTRICITY ARAB CUSTOMERS EMIRATES AND WATER CUSTOMERS FOR INITAL AND PRODUCTION UNIT DETAILED DESIGNS 40 INVESTOR DAY
Slide 41: Technology & Online Retail
TECHNOLOGY & ONLINE RETAIL 41 INVESTOR DAY
Slide 42: Technology: Safety Connectivity Homologation
TECHNOLOGY SAFETY CONNECTIVITY HOMOLOGATION GERMANY ITALIAN LUXURY & VEHICLE CHINA MANUFACTURER FOR EMERGENCY CALL FEATURE 42 INVESTOR DAY
Slide 43: Online Retail Audits & Testing
ONLINE RETAIL AUDITS & TESTING ASOS IS AN ONLINE FASHION RETAILER SELLING MORE THAN GLOBAL TO OVER WORLDWIDE PRODUCT FOR AUDIT & FOR TEST FACTORY 43 INVESTOR DAY
Slide 44: Cybersecurity Compliance
CYBERSECURITY COMPLIANCE 44 INVESTOR DAY
Slide 45: Cybersecurity Compliance
CYBERSECURITY COMPLIANCE TECHNOLOGY ENERGY GLOBAL SITES CYBERSECURITY ASSESSMENT COUNTRIES OF PRODUCTS, SYSTEMS CERTIFICATES AND PEOPLE 45 INVESTOR DAY
Slide 46: A Journey Towards Longer Term Relevance
A JOURNEY TOWARDS INTO LONGER A TERM RELEVANCE, INCLUDING PARTNERSHIPS & INNOVATION SET IN MOTION IN CAPTURING VALUE AT OPERATIONAL LEVEL FROM 2020 STRATEGIC PLAN INVESTMENTS 46 INVESTOR DAY
Slide 47: Enablers
47 3 ENABLERS > INVESTOR DAY
Slide 48: Enablers: People & Culture, Organization & Governance, Innovation & Digital
ENABLERS PEOPLE ORGANIZATION INNOVATION & & & CULTURE GOVERNANCE DIGITAL 48 INVESTOR DAY
Slide 49: Business to Business to Society Company
TO SOCIETY COMPANY SHAPING A WORLD OF TRUST BY ENSURING RESPONSIBLE PROGRESS Thanks to our unrivalled expertise, independence CONTRIBUTING and worldwide presence, TO TRANSFORMING we support our clients by managing quality, safety, health and sustainability risks, to the benefit of society as a whole
Slide 50: Our CSR Vision
OUR CSR VISION INTERNALLY EXTERNALLY THANKS THANKS TO OUR OWN CSR STRATEGY TO OUR SERVICES SUPPORTING CSR COMMITMENT ” Owing to the nature of its services, BV has a two fold impact on CSR issues 50 INVESTOR DAY
Slide 51: Shaping a Better World
SHAPING A BETTER 51 INVESTOR DAY
Slide 52: CSR Management in Place
CSR MANAGEMENT IN PLACE ORGANIZATION MONITORING POLICIES SET A CSR COMMUNITY MANAGEMENT TOOL SET AND PUBLICLY DISCLOSE 24 CSR POLICIES CSR Excom Clarity Operational Excellence Subject Matter Experts Environment OG CSR community Social Or Ext. Stakeholder committee 52 INVESTOR DAY
Slide 53: Our CSR Ratings
OUR CSR RATINGS Rated 85/100 Ranked #1 in the Professional Services Industry category Gold medal in the 2020 Sustainability Yearbook Rated AA Platinum medal Rated B BY V.E. AND Constituent of the FTSE4Good Index Series EURONEXT Rated “Low risk” Ranked #2 in Research and Consulting category Rated 83/
Slide 54: Our Selected CSR KPIs and 2025 Ambition
OUR SELECTED CSR KPIs AND 2025 AMBITION Total Women rate CO2 emissions Learning hours % of Employee Accident Rate in leadership position per Employee per Employee trained to CoE 0.26 35% 2.00t/year 35h 99% 1 TAR: Total Accident Rate (number of accidents with and without lost time x 200,000/number of
Slide 55: Our CSR Commitment Is a Living Extension of Our Brand Mission
OUR CSR COMMITMENT… … IS A LIVING EXTENSION OF OUR BRAND MISSION BRAND MISSION CSR MISSION SHAPING SHAPING 55 INVESTOR DAY
Slide 56: Financial Ambition
4 FINANCIAL AMBITION 56 INVESTOR DAY
Slide 57: A Performance Ramping Up Throughout the 2015 Strategic Plan
A PERFORMANCE RAMPING UP THROUGHOUT THE 2015 STRATEGIC PLAN IN EUR MILLIONS AND IN % (2016 to 2021E) IN EUR MILLIONS AND IN % (2016 to 2021E) 9.8% 16.2% 16.3% 16.2% 15.9% 15.8% 4.0% 4.3% 832 13.4% 808 735 746 758 2.2% 615 5,100 4,991 4,549 4,689 4,796 4,598 (0.6)% (6.0)% 2016 2017 2018 2019 2020 202
Slide 58: A Successful Repositioning Despite Adverse Market Conditions
A SUCCESSFUL REPOSITIONING DESPITE ADVERSE MARKET CONDITIONS IN COMPOUND ANNUAL GROWTH RATE (2015 to 2019) 4.2% 4.4% 3.6% 3.7% 2.5% (0.2)% (1.0)% AGRI-FOOD I N D U S T RY BUILDINGS C E RT I F I C AT I O N CONSUMER MARINE & GROUP & COMMO. & INFRA. PRODUCTS OFFSHORE 58 INVESTOR DAY
Slide 59: A Strong Free Cash Flow Generation Contributing to Significant Deleveraging
A STRONG FREE CASH FLOW GENERATION CONTRIBUTING TO SIGNIFICANT DELEVERAGING OVER THE PERIOD IN EUR MILLIONS AND IN % (2016 to 2020) NET DEBT/EBITDA RATIO 618 634 2.37 2.34 132% 2.20 478 1.87 363 1.80 350 99% 90% 81% 78% 1.30 2016 2017 2018 2019 2020 Dec. Dec. Dec. Dec. Dec. Jun. 2016 2017 2018 2019
Slide 60: Three Key Platforms Built Through Bolt-on Acquisitions Since 2015
THREE KEY PLATFORMS A CLEAR M&A STRATEGY: BUILT THROUGH BOLT-ON DISCIPLINED AND SELECTIVE ACQUISITIONS SINCE 2015 Significant achievements over time − Above €500 million of revenue acquired over the period 2015-2020 BUBBLE SIZE ILLUSTRATIVE OF THE REVENUE SIZE − 38 bolt-on acquisitions in total 2021
Slide 61: A Strengthened Resilience and Footprint Thanks to Targeted Acquisitions
A STRENGTHENED RESILIENCE AND FOOTPRINT THANKS TO TARGETED 1 12 22 ACQUISITIONS 2 13 23 3 14 24 4 15 25 5 16 26 15 26 6 1 14 6 2 7 8 24 16 17 22 3 4 13 9 10 17 25 5 18 7 18 19 20 8 19 12 23 21 9 20 BUILDINGS & INFRASTRUCTURE 11 21 AGRI-FOOD 10 CONSUMER PRODUCTS 11 61 INVESTOR DAY
Slide 62: A 2025 Ambition Anchored into 3 Financial KPIs and 1 CSR Commitment
A 2025 AMBITION ANCHORED INTO 3 FINANCIAL KPIS AND 1 CSR COMMITMENT MID-SINGLE-DIGIT ABOVE 16%1 BUREAU VERITAS’ CASH CONVERSION2 >90% COMMITMENT ON 5 KPIS3 1 Adjusted operating margin at constant exchange rate 2 Net cash generated from operating activities/Adjusted Operating Profit, on average over
Slide 63: A Revenue Ambition Supported Mainly by Scale, Expand and Lead
A REVENUE AMBITION SUPPORTED MAINLY BY SCALE, EXPAND AND LEAD VALUE DRIVERS REST OF STRATEGIC PRIORITIES BUSINESS M&A (Organic) (Organic) LEAD EXPAND SCALE 2021 REVENUE FORECAST 2025 REVENUE 63 INVESTOR DAY
Slide 64: A Disciplined Capital Allocation with Clear Priorities
A DISCIPLINED CAPITAL ALLOCATION WITH CLEAR PRIORITIES IN % OF GROUP REVENUE (2016 to 2020) A K E Y L E V E R TO D E L I V E R S T R O N G C A S H G E N E R AT I O N 2025 FINANCIAL ASSUMPTIONS 10.0% Free cash flow 9.7%2 − Continuing growth in free cash flow generation with >90% conversion on average
Slide 65: Conclusion
s} eg i — eal Re CONCLUSION ~~ 2 —_- 65 INVESTOR DAY
Slide 66: At Bureau Veritas We Support Responsible Progress
AT BUREAU VERITAS WE SUPPORT RESPONSIBLE PROGRESS SAFER, FAIRER AND MORE IN THEIR EVOLUTION SUSTAINABLE ECONOMIC WHILE FACING MULTIPLE SYSTEM TRANSITIONS 66 INVESTOR DAY
Slide 67: BV in the Future: Leadership by Expertise & a Client-Centric Approach
BV IN THE FUTURE: LEADERSHIP BY EXPERTISE & A CLIENT-CENTRIC APPROACH LEADERSHIP IN SECTORS AND ACTIVITIES AT THE CORE OF BV EXPERTISE CLIENT-CENTRIC THROUGH INNOVATION, PROACTIVITY AND AGILITY − Global leader of the city of tomorrow: smarter, greener and more human − Undisputed leader in the energy