Arcadis Nv · EURONEXT:ARCAD
Arcadis Nv — Q3 2022 Earnings Presentation
19 slides from Arcadis Nv's earnings presentation, Oct 27, 2022
Slide 1: Continued strong client demand and improved performance
Continued strong client demand and improved performance Arcadis Q3 2022 Trading Update October 27th, 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: Q3 2022 Trading update key messages
Part 1 Q3 2022 Trading update key messages Peter Oosterveer | Chief Executive Officer
Slide 4: Strong growth and improved performance
Summary of results Strong growth and improved performance Third quarter 2022 results: Organic net revenue growth Strong backlog underlines client Operating EBITA margin improved accelerates1) demand1) 10.9% €2,813M 10.3% (last year: 9.5%2)) 1) Underlying growth excluding the impact of currency movem
Slide 5: Resilience
Global Business Areas Resilience Third quarter 2022 results: CLIENT DEMAND CASE STUDY Organic net revenue growth • Environmental restoration: demand from larger chemical & life sciences clients, good order intake PFAS 13.7% • Climate adaptation & Energy Transition and Advisory: focus on grids, renew
Slide 6: Places
Global Business Areas Places Third quarter 2022 results: CLIENT DEMAND CASE STUDY Organic net revenue growth • Net Zero and sustainable Facilities: adapt assets to changing climate and continued 3.6% push of society and regulation for Net Zero • Industrial manufacturing: EV Designing the largest arc
Slide 7: Mobility
Global Business Areas Mobility Third quarter 2022 results: CLIENT DEMAND CASE STUDY Organic net revenue growth • Connected Highways and Intelligent Rail: increased need to proactively solve mobility challenges through data 15.4% • New Mobility: bus electrification demand expands and semiconductor sh
Slide 8: Financial Results
Part 2 Financial Results Virginie Duperat | Chief Financial Officer
Slide 9: Strong revenue growth and operating margin improvement
Strong revenue growth and operating margin improvement €740M 10.9% (Q3’21: €636M) Organic Net Net Revenue Revenue growth1) €76M 10.3% (Q3’21: €60M) (Q3’21: 9.5%) Operating EBITA Operating EBITA margin €38M €880M (Q3’21: €75M) (Q3’21: €298M Free Cash Flow1) Net Debt 1) Underlying growth excluding the
Slide 10: Accelerated revenue growth and improved operating performance
Accelerated revenue growth and improved operating performance Net Revenues and Organic Growth1) Operating EBITA (margin)2) € millions, % € millions, % 10.7% 10.3% 10.9% 9.5% 9.4% 9.3% 8.1% 4.8% 5.3% 5.6% 688 729 740 70 68 76 636 652 60 64 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 D
Slide 11: Strong performance across GBAs and repositioning of backlog
Strong performance across GBAs and repositioning of backlog Resilience Places Mobility Net Revenue: €320M (LY: €259M) Net Revenue: €234M (LY: €209M) Net Revenue: €186M (LY: €168M) Net Revenue as % of total: 43% Net Revenue as % of total: 32% Net Revenue as % of total: 25% Organic Growth: 13.7%1) Org
Slide 12: Strategic decisions drive rebalanced backlog and pipeline
Strategic decisions drive rebalanced backlog and pipeline; tailored to high growth end markets Strengthened backlog positions in core Backlog to high growth and geographies and resilient end markets with businesses strong client base +32% to Backlog Q3 2022 incl. IBI, excl. DPS Backlog Q3 2022 incl.
Slide 13: Strategic progress
Part 3 Strategic progress Peter Oosterveer | Chief Executive Officer
Slide 14: Digital Leadership: creating a new 4th GBA to maximize our digital impact
Digital Leadership: creating a new 4th GBA to maximize our digital impact Role of the 4th GBA Intelligence GBA Digital Client Innovation Solutions Driving Recurring Efficiency Revenue & Productivity Attractive Suite of Combined Client Solutions Resilience Places Mobility New Fourth GBA: Intelligence
Slide 15: Sustainable Solutions: acquisitions of DPS, one-stop shop in Life Sciences
Sustainable Solutions: acquisitions of DPS, turning Arcadis into a one-stop shop, full-service provider in Life Sciences What are Life Sciences clients Combination well positioned to meet client needs in Life Sciences sector, but also in looking for Industrial Manufacturing and Technology “Speed to
Slide 16: Focus & Scale: divestment of non-core geographies and businesses
Focus & Scale: strategic portfolio assessment has resulted in the divestment of non-core geographies and businesses Reviewing operations on their scalability, growth potential, financial performance, and scope of services led to the decision to divest H1‘22: Czech Republic, Slovakia, Thailand 190 FT
Slide 17: Delivering on our 2021-2023 'Maximizing Impact' Strategy
Delivering on our 2021-2023 ‘Maximizing Impact’ Strategy Digital leadership Sustainable solutions Focus & Scale • IBI Group as accelerator, shaping the • Investing in Energy Transition • Divesting non-core and focus on high fourth GBA: “Intelligence” • Leading in remediation & water in the US growth
Slide 18: Wrap up
Wrap up • Sustained robust market conditions, despite geopolitical tensions and inflation • Strong revenue growth, margin improvement and backlog development • Solid strategic progress on Digital Leadership and Focus & Scale • On track to deliver on 2023 strategic targets © Arcadis 2022 | Q3 2022 Tr
Slide 19: Q&A
Q&A