Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — Q3 2022 Earnings Presentation
46 slides from Bureau Veritas Sa's earnings presentation, Oct 26, 2022
Slide 1: Bureau Veritas – October 26, 2022
BUREAU VERITAS OCTOBER 26, 2022
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
Slide 3: Agenda
Agenda HIGHLIGHTS BUSINESS REVIEW OUTLOOK Q&A APPENDIX
Slide 4: Highlights
BUREAU VERITAS HIGHLIGHTS Q3 2022 REVENUE
Slide 5: Health & Safety, clients' service, and financial solidity at the core of our actions
Health & Safety, clients’ service, and financial solidity at the core of our actions Ensuring employee Health & Safety Ensuring business continuity with and for clients Protecting the financial solidity of the Group Q3 2022 REVENUE 5
Slide 6: Q3 2022 highlights
Q3 2022 highlights ORGANIC REVENUE GROWTH OF 8.7% • 5 businesses delivered strong organic growth: Buildings & Infrastructure +11.0%, Industry +10.6%, Marine & Offshore +9.7%, Agri-Food & Commodities +9.6% and Certification +6.6%, REVENUE • Consumer Products grew organically by 0.6%, vs a strong reco
Slide 7: Key developments in Q3 2022
Key developments in Q3 2022 Steady organic Reaping the reward of revenue momentum our diversified business Focusing on Consumer Products and Bolt-on M&A Buildings & Infrastructure in USA & Europe Expertise for Accelerating momentum with Sustainability BV Green Line of services & solutions Q3 2022 RE
Slide 8: Bureau Veritas' organic growth fueled by the excellent diversification
Bureau Veritas’ organic growth fueled by the excellent diversification A BALANCED PORTFOLIO FUELING THE GROWTH A STRONG FRANCHISE ACROSS ALL CONTINENTS IN PERCENTAGE OF GROUP REVENUE IN PERCENTAGE OF GROUP REVENUE HIGH SINGLE-DIGIT ORGANIC GROWTH Africa, Middle East + 16.2% • Marine & Offshore, orga
Slide 9: A US B&I platform built through bolt-on acquisitions; a successful CPS diversification
A US B&I platform built through A successful CPS diversification bolt-on acquisitions strategy through bolt-on acquisitions Most recent acquisition: c. €8m annual revenue(1) Tennessee Acquisition rationale: expansion of Bureau Veritas’ position in Consumer Healthcare, Personnal Care & (USA) Industri
Slide 10: Bureau Veritas' CSR performance and positioning
Bureau Veritas’ CSR performance and positionning in the by Axylia in Professional Services the “Vérité 40” Index Industry category in the in the European Research & Business support Consulting sector services sector Q3 2022 REVENUE 10
Slide 11: Business Review
BUSINESS REVIEW
Slide 12: Q3 2022 revenue growth by business
Q3 2022 revenue growth by business % of @ constant revenue currency 29% Buildings & Infrastructure +11,0% +2,3% +13.3% 22% Agri-Food & Commodities +9,6% +9.6% 21% Industry (0.7)% +10,6% +9.9% 13% Consumer Products +0,6% +5,4% +6.0% 8% Certification +6,6% +6.6% 7% Marine & Offshore +9,7% +9.7% 100% T
Slide 13: Q3 2022 performance was steady across all businesses (1/3)
Bureau Veritas’ Q3 2022 performance was steady across all businesses (1/3) Marine & Offshore Agri-Food & Commodities organic organic growth growth • New Construction (40% of divisional revenue): low • Oil & Petrochemicals (31% of divisional revenue): low double-digit organic revenue growth, primaril
Slide 14: Q3 2022 performance was steady across all businesses (2/3)
Bureau Veritas’ Q3 2022 performance was steady across all businesses (2/3) Industry Buildings & Infrastructure organic organic growth growth • Power & Utilities (14% of divisional revenue): remained • Construction-related activities grew faster than a key growth driver of the portfolio with a double
Slide 15: Q3 2022 performance was steady across all businesses (3/3)
Bureau Veritas’ Q3 2022 performance was steady across all businesses (3/3) Certification Consumer Products organic organic growth growth • Overall, the growth was supported by both volume and • Strong organic growth performance in newly penetrated robust price increases across most geographies count
Slide 16: Bureau Veritas Green Line maintained strong momentum
Bureau Veritas Green Line of services & solutions maintained strong momentum BV GREEN LINE REPRESENTING C.55% OF SALES IN PERCENTAGE OF GROUP SALES BREAKDOWN OF GROUP SALES (9M 2022) EXAMPLES OF SUSTAINABILITY WINS ACROSS OUR ACTIVITES Resources Industry China - Project supervision of the largest &
Slide 17: Outlook
VERITAS OUTLOOK
Slide 18: Confirmed 2022 Outlook
Option 2 Confirmed 2022 Outlook Based on the year-to-date performance, the significant growth opportunities related to its sustainability range of services and solutions, and excluding the full year impact of the Covid-19 lockdowns in China, Bureau Veritas still expects for 2022 to: Generate Achieve
Slide 19: An agile and resilient business model
An agile and resilient business model Very steady operational performance in Q3 2022 Our transformation secured resilience and agility Bureau Veritas is well positioned, at the heart of society's challenges and growing demand for transparency Q3 2022 REVENUE 19
Slide 20: Q&A
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Slide 21: 2023 Financial Calendar & Contacts
2023 Financial Calendar & Contacts BUREAU VERITAS HEAD OFFICE – 40/52 BOULEVARD DU PARC • Full Year 2022 Results: February 23, 2023 92200 NEUILLY-SUR-SEINE, FRANCE • Q1 2023 revenue: April 20, 2023 Laurent Brunelle • Shareholder’s meeting: June 22, 2023 Head of Investor Relations • Half Year 2023 Re
Slide 22: Appendix
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Slide 23: Green Line of independent expertise to foster a sustainable world
Bureau Veritas’ Green Line of independent expertise to foster a sustainable world RESOURCES & PRODUCTION NEW MOBILITY RENEWABLES & E-MOBILITY, ALTERNATIVE ENERGIES BUILDINGS ALTERNATIVE SOCIAL, ETHICS ENERGY TRANSITION & INFRASTRUCTURE PROPULSION & GOVERNANCE Onshore and offshore Wind Farms, Solar P
Slide 24: 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 Q3 2022 REVENUE 24
Slide 25: Priorities to shape a better world
Bureau Veritas’ priorities to shape a better world Bureau Veritas’ priorities: Bureau Veritas’ priorities: Bureau Veritas’ priorities: • Occupational health and • Diversity and equal • Energy efficiency; • Effective, accountable and safety; opportunity; transparent governance; • GHG emissions; • Hum
Slide 26: CSR Key Performance Indicators
Option 2 CSR Key Performance Indicators 9M 2022 FY 2021 2025 target Total Accident Rate (TAR)1 0.25 0.27 0.26 Proportion of women in leadership positions2 29.9% 26.5% 35.0% Number of training hours per employee (per year)3 23.0 29.9 35.0 CO2 emissions per employee (tons per year)4 2.30 2.49 2.00 Pro
Slide 27: Q3 2022 total revenue increase of 17.0%
Q3 2022 total revenue increase of 17.0% REVENUE EVOLUTION 10.0% at constant currency 1.3% 7.0% 8.7% 1 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentation Q3 2022 REVENUE 27
Slide 28: 9M 2022 revenue growth by business
9M 2022 revenue growth by business % of @ constant revenue currency 29% Buildings & Infrastructure +6,2% +1,8% +8.0% 22% Agri-Food & Commodities (0,2)% +9,0% +8.8% 21% Industry (0,6)% +10,7% +10.1% 13% Consumer Products +3,0% +2,1% +5.1% 8% Certification +4,9% +0,1% +5.0% 7% Marine & Offshore +7,2%
Slide 29: Q3 2022 revenue by business
Q3 2022 revenue by business REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE Q3 2022 IN EUR MILLIONS €m Organic Scope Currency Marine & Offshore 104.7 +9.7% - +3.7% Marine & Offshore 13% 7% Agri-Food & Commodities Agri-Food & Commodities 323.9 +9.6% - +9.0% 8% 22% Industry Industry 306.0
Slide 30: 9M 2022 revenue by business
9M 2022 revenue by business REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE 9M 2022 IN EUR MILLIONS €m Organic Scope Currency Marine & Offshore 309.2 +7.2% - +2.6% Marine & Offshore 13% 7% 911.9 +9.0% (0.2)% +6.5% Agri-Food & Commodities Agri-Food & Commodities 8% 22% Industry Industry
Slide 31: Marine & Offshore (7% of revenue)
Marine & Offshore (7% of revenue) KEY FINANCIALS Q3 2022 HIGHLIGHTS KEY KEYFIGURES FIGURES IN EUR MILLIONS Q3 2022 Q3 2021 Change • New Construction: low double-digit organic growth, fueled by Asia (China and South Korea Revenue 104.7 92.3 +13.4% essentially). This reflected the acceleration in Low
Slide 32: Agri-Food & Commodities (22% of revenue)
Agri-Food & Commodities (22% of revenue) KEY FINANCIALS Q3 2022 HIGHLIGHTS KEY KEYFIGURES FIGURES • O&P: low double-digit organic growth; led by IN EUR MILLIONS Q3 2022 Q3 2021 Change both Upstream and trade related activities. O&P Trade market benefited from higher fuel Revenue Organic 323.9 273.1
Slide 33: Industry (21% of revenue)
Industry (21% of revenue) KEY FINANCIALS Q3 2022 HIGHLIGHTS KEY FIGURES • Oil & Gas: double-digit organic growth. The IN EUR MILLIONS Q3 2022 Q3 2021 Change bulk of the growth came from the Opex-related activities, essentially driven by Latin America Revenue 306.0 259.1 +18.1% followed by Middle Eas
Slide 34: Buildings & Infrastructure (29% of revenue)
Buildings & Infrastructure (29% of revenue) KEY FINANCIALS Q3 2022 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2022 Q3 2021 Change • Led by a stellar performance in Americas and Middle East & Africa Americas Revenue 426.2 357.0 +19.4% (28% of B&I Q3 revenue) Organic +11.0% Building In-Service (42% of
Slide 35: Certification (8% of revenue)
Certification (8% of revenue) KEY FINANCIALS Q3 2022 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2022 Q3 2021 Change • Overall, the growth was supported by both volume and robust price increases across most Revenue Organic 101.2 92.4 +9.5% +6.6% geographies. The activity continued to benefit Sustainab
Slide 36: Consumer Products (13% of revenue)
Consumer Products (13% of revenue) KEY FINANCIALS Q3 2022 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2022 Q3 2021 Change • Strong organic growth performance illustrating Group’s geographic diversification strategy (South Revenue 195.1 171.8 +13.6% Asia, South America) South-East Asian Organic +0.6% c
Slide 37: Q3 2022 revenue evolution by geography
Q3 2022 revenue evolution by geography REVENUE BY GEOGRAPHIC AREA (Q3 2022) REVENUE EVOLUTION BY NATURE (Q3 2022) Organic Scope Africa, Middle East 9% Europe +5,2% 31% Americas 29% 15,0% 16,2% Asia 6,0% 4,6% Pacific 31% (0,2)% (0,1)% Americas Europe Africa, Asia Pacific Middle East Q3 2022 REVENUE 3
Slide 38: 9M 2022 total revenue increase of 13.3%
9M 2022 total revenue increase of 13.3% REVENUE EVOLUTION VARIATION ANALYSIS +8.0% at constant currency +0.7% +5.3% +7.3% 1 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentation Q3 2022 REVENUE 38
Slide 39: 9M 2022 revenue evolution by geography
9M 2022 revenue evolution by geography REVENUE BY GEOGRAPHIC AREA (9M 2022) REVENUE EVOLUTION BY NATURE (9M 2022) Organic Scope +3,4% Asia Americas Pacific 27% 30% +15,8% +14,9% Africa, Middle East 9% Europe +3,6% +2,8% 34% (0,4)% (0,1)% (0,0)% Americas Europe Africa, Asia Pacific Middle East Q3 202
Slide 40: Currency mix in 9M 2022
Currency mix in 9M 2022 REVENUE CURRENCY EXPOSURE CURRENCY CHANGE (YEAR ON YEAR) OTHER 10,8% MXN 0,9% USD (and pegged) +10,2% SAR 0,9% VND 0,9% CNY +10,1% PEN 1,0% EUR 27,7% XOF 1,0% AUD +2,8% ARS 1,1% KRW 1,0% COP 1,2% CAD +8,1% SGD 1,3% TWD 1,5% BRL +16.8% JPY 1,7% HKD +9,3% INR 1,8% AED 2,0% 9M 2
Slide 41: A solid financial structure with no material debt maturities before 2025
A solid financial structure with no material debt maturities before 2025 DEBT MATURITY PROFILE AS OF SEPT. 30, 2022 DEBT BREAKDOWN IN MILLION EUROS Already 205 refinanced Bond USPP 36% Bond USPP Fixed rate 200 64% New 500 500 100% 300 200 205 205 200 159 2023 2024 2025 2026 2027 2028 2029 2030 2031
Slide 42: Definition of alternative performance indicators and reconciliation with IFRS (1/2)
Definition of alternative performance indicators and reconciliation with IFRS (1/2) INTRODUCTION ORGANIC GROWTH (1/2) The management process used by the Bureau Veritas Group is based on a The Group internally monitors and publishes “organic” revenue growth, which series of alternative performance in
Slide 43: Definition of alternative performance indicators and reconciliation with IFRS (2/2)
Definition of alternative performance indicators and reconciliation with IFRS (2/2) ORGANIC GROWTH (2/2) SCOPE EFFECT Organic revenue growth represents the percentage of revenue growth, To establish a meaningful comparison between reporting periods, the impact presented at Group level and for each b
Slide 44: Glossary
Glossary Operating Profit (AOP) excludes amortization of acquisition intangibles, goodwill IoT: Internet of Things impairment, restructuring, acquisition and disposal-related items (adjustment items) IMO: International Maritime Organization ASR: Accident Severity Rate LNG: Liquefied Natural Gas Adju
Slide 45: Ownership and market data at September 30, 2022
Ownership and market data at September 30, 2022 STABLE SHAREHOLDING STRUCTURE MARKET DATA • Listed on Euronext-Paris 0,3% • Ticker: BVI • ISIN: FR0006174348 • IPO on October 2007: €9.44/share 35,4% • Share Price1: €22.9 Wendel group • Market Cap.1: €10.4 bn Executive Committee • Main indices: Vérité
Slide 46: Bureau Veritas – Shaping a World of Trust
BUREAU LVERITAS | VERITAS Shaping a World of Trust