Bureau Veritas Sa · EURONEXT:BVI

Bureau Veritas Sa — Q1 2019 Earnings Presentation

30 slides from Bureau Veritas Sa's earnings presentation, Apr 25, 2019

  1. Slide 1: Q1 2019 Revenue

    Q1 2019 REVENUE APRIL 25, 2019

  2. Slide 2: Disclaimer

    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 are based on current plans and forecasts of Bureau Veritas’ management

  3. Slide 3: Agenda

    Agenda HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX

  4. Slide 4: Highlights

    VERITAS HIGHLIGHTS

  5. Slide 5: Q1 2019 highlights

    Q1 2019 highlights ORGANIC REVENUE GROWTH OF +4.0%  5 out of 6 businesses growing at 4.5% on average, including Agri-Food & Commodities at +7.8%, Consumer Products at +4.1% and Buildings & Infrastructure at +3.0% REVENUE €1.18bn  Late-cyclical activities are gradually recovering, with M&O up 3.2%

  6. Slide 6: 2019 YTD acquisitions adding c.€45m of revenue

    2019 YTD acquisitions adding c.€45m of revenue1 BUILDINGS & INFRASTRUCTURE AGRI-FOOD JANUARY JANUARY €4m (additional revenue) €23m  Formation of Singapore-based BVAQ, a food testing company providing services to South East Asian markets Consulting and support services for white  BVAQ is a joint ve

  7. Slide 7: Financial Review

    FINANCIAL REVIEW

  8. Slide 8: Q1 2019 revenue growth

    Q1 2019 revenue growth REVENUE EVOLUTION +5.8% at constant currency +4.0% +1.8% +1.0% 1,175.1 1,100.3 Q1 2018 Organic 1 Scope Foreign Exchange Q1 2019 (1) Organic growth represents the percentage of revenue growth, presented at Group level and for each activity, based on constant scope of consolidat

  9. Slide 9: Q1 2019 revenue growth by business

    Q1 2019 revenue growth by business % of @ constant revenue currency 23% Agri-Food & Commodities 7.8% 1.2% +9.0% 28% Buildings & Infrastructure 3.0% 5.8% +8.8% 13% Consumer Products 4.1% +4.1% 7% Marine & Offshore 3.2% 0.4% +3.6% 22% Industry (0.1)% 3.7% +3.6% 7% Certification (1.9)% (1.9)% 100% Tota

  10. Slide 10: Organic growth driven by both Base Business & Growth Initiatives

    Organic growth driven by both Base Business & Growth Initiatives ORGANIC REVENUE FOR THE BASE BUSINESS Q1 2019 PERFORMANCE 3.7% 2.1% 1.3% 2.5% 63% Base Business grew 2.5% organically in Q1 2019:  Benefiting from Oil & Gas Capex and Marine & (1.1)% Offshore positive trends (2.2)% (3.7)%  Impacted b

  11. Slide 11: Business Review

    BUREAU VERITAS BUSINESS REVIEW

  12. Slide 12: Marine & Offshore (7% of revenue)

    Marine & Offshore (7% of revenue) KEY FINANCIALS Q1 2019 HIGHLIGHTS KEY FIGURES  New Construction: low-single digit growth, led by New orders Order book In-Service fleet IN EUR MILLIONS Q1 2019 Q1 2018 Var. new equipment certification services; impacted by a Revenue 87.3 83.6 +4.4% timing issue in

  13. Slide 13: Marine market perspective

    Marine market perspective WORLDWIDE NEW SHIP ORDERS BUREAU VERITAS NEW SHIP ORDER BOOK IN MGT IN NUMBER OF SHIPS, FOR SHIPS ABOVE 5,000 GT 120 Bulk 100 Tanker Gas 80 20-year average Offshore 60 Passenger 40 Other 20  Very diversified order book with expanding shares for Bulk, 0 LNG vessels, Tankers

  14. Slide 14: Agri-Food & Commodities (23% of revenue)

    Agri-Food & Commodities (23% of revenue) KEY FINANCIALS Q1 2019 HIGHLIGHTS 2020 STRATEGIC INITIATIVES  O&P (+1.3%): mid-single digit growth in Europe IN EUR MILLIONS Q1 2019 Q1 2018 Var. (new services), while slightly negative in North America (bad weather in the Gulf Coast region in Agri-Food Reve

  15. Slide 15: Industry (22% of revenue)

    Industry (22% of revenue) KEY FINANCIALS Q1 2019 HIGHLIGHTS 2020 STRATEGIC INITIATIVES  Oil & Gas Capex improved (+4.6%), confirming IN EUR MILLIONS Q1 2019 Q1 2018 Var. the trend observed in H2 2018 Revenue 255.8 248.2 +3.1%  US, S.Korea & Latam (+); Asia (=) +14.6% OPEX O&G organic Organic +3.7%

  16. Slide 16: Buildings & Infrastructure (28% of revenue)

    Buildings & Infrastructure (28% of revenue) KEY FINANCIALS Q1 2019 HIGHLIGHTS 2020 STRATEGIC INITIATIVES Construction-related activities (42% of IN EUR MILLIONS Q1 2019 Q1 2018 Var. divisional revenue) mid-single digit growth China* Revenue 323.8 293.9 +10.2%  Primarily driven by Asia Pacific, led

  17. Slide 17: Certification (7% of revenue)

    Certification (7% of revenue) KEY FINANCIALS Q1 2019 HIGHLIGHTS 2020 STRATEGIC INITIATIVES  Mixed performances by region and service IN EUR MILLIONS Q1 2019 Q1 2018 Var. category attributed to the end of the 3-year Portfolio diversification Revenue 83.2 84.7 (1.8)% standards revision period New Pro

  18. Slide 18: Consumer Products (13% of revenue)

    Consumer Products (13% of revenue) KEY FINANCIALS Q1 2019 HIGHLIGHTS 2020 STRATEGIC INITIATIVES  E&E: mid-single digit growth primarily driven by IN EUR MILLIONS Q1 2019 Q1 2018 Var. double digit growth in Mobile testing; challenging SmartWorld Revenue 150.1 139.7 +7.4% comparables in automotive Gr

  19. Slide 19: Outlook

    < O O al = _) O

  20. Slide 20: Confirmed 2019 Outlook

    Confirmed 2019 Outlook Solid organic Continued adjusted Sustained strong revenue growth operating margin cash flow improvement at generation constant currency Q1 2019 REVENUE 20

  21. Slide 21: Conclusion

    Conclusion Solid start to the year 2019 Outlook confirmed Delivery of 2020 ambition on track Q1 2019 REVENUE 21

  22. Slide 22: Q&A

    Q&A

  23. Slide 23: 2019 Financial Calendar & Contacts

    2019 Financial Calendar & Contacts 2019 AGENDA Q1 2019 revenue – April 25, 2019 INVESTOR RELATIONS DEPARTMENT  Barclays, TIC Conference, London – June 6, 2019 BUREAU VERITAS HEAD OFFICE – 40/52 BOULEVARD DU PARC  Exane BNP, CEO Conference, Paris – June 12, 2019 92200 NEUILLY-SUR-SEINE, FRANCE Shar

  24. Slide 24: Appendix

    Te28 BUREAU VERITAS APPENDIX

  25. Slide 25: Q1 2019 revenue by business

    Q1 2019 revenue by business REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE Q1 2019 IN EUR MILLIONS €m Organic Scope FX Marine & Offshore 87.3 +3.2% +0.4% +0.8% Marine & Offshore 13% 7% Agri-Food & Commodities Agri-Food & Commodities 274.9 +7.8% +1.2% +0.8% 7% 23% Industry Industry 255.

  26. Slide 26: Revenue is growing in all geographies

    Revenue is growing in all geographies REVENUE BY GEOGRAPHIC AREA REVENUE GROWTH BY NATURE Organic growth 9.6% Acquisition growth Americas Asia 26% Pacific 30% 4.0% 6.9% 0.8% Africa, Middle 3.6% East 5.6% 1.5% 6.1% 9% Europe 1.6% 35% 2.1% 0.7% 0.9% Americas Europe Africa, Asia Pacific Middle-East Q1

  27. Slide 27: Forex impact in Q1 2019

    Forex impact in Q1 2019 REVENUE CURRENCY EXPOSURE CURRENCY CHANGE Y/Y OTHER 11.9% USD (and pegged) +8.2% RUB 0.8% CNY +2.0% MXN 0.8% PEN 1.0% EUR 28.5% GBP +1.2% TWD 1.3% AUD (2.0)% COP 1.3% KRW 1.4% CAD +2.9% SGD 1.6% BRL (6.8)% INR 1.7% CLP (2.3)% JPY 2.2% JPY +6.5% CLP 2.7% Q1 2019 INR (1.2)% SGD

  28. Slide 28: Ownership at March 31, 2019

    Ownership at March 31, 2019 STABLE SHAREHOLDING STRUCTURE 1.3% 35.4% Wendel Managers & Employees Free Float Treasury shares 61.9% 1.4% Q1 2019 REVENUE 28

  29. Slide 29: Glossary

    Glossary Adjusted Operating Profit (AOP) excludes amortization of acquisition intangibles, IoT: Internet of Things goodwill impairment, restructuring, acquisition and disposal-related items IMO: International Maritime Organization (adjustment items) LNG: Liquefied Natural Gas ASR: Accident Severity

  30. Slide 30: BUREAU

    BUREAU PVERITAS | VERITAS

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