Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — H1 2024 Earnings Presentation
62 slides from Bureau Veritas Sa's earnings presentation, Jul 25, 2024
Slide 1: H1 2024 Results
H1 2024 July 25, 2024 RESULTS
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: Summary
SUMMARY 01 02 03 04 HIGHLIGHTS FINANCIAL REVIEW PORTFOLIO BUSINESS OUTLOOK HIGHLIGHTS 3
Slide 4: Highlights
01. Highlights 4
Slide 5: H1 2024 results highlights
REVENUE • +4.0% total growth (+9.3% at cc) €3.0bn • +9.2% organic growth in H1 2024, of which +10.4% in Q2 A D J . O P E R AT I N G P R O F I T +4.1% y/y €451.9M Adjusted operating margin of 15.0% H1 2024 +29bps organically and +33bps at cc RECORD ADJ. NET PROFIT ADJ. EPS R E S U LT S €288.3M €0.64
Slide 6: Strong H1 organic growth with robust market trends
STRONG H1 ORGANIC GROWTH WITH ROBUST MARKET TRENDS GROWTH LED BY ALL BUSINESSES BROAD GROWTH ACROSS ALL REGIONS SIZE OF BOXES IN PROPORTION OF GROUP REVENUE IN PERCENTAGE OF GROUP REVENUE Cumulative revenue Africa, Middle East IND HIGH DOUBLE-DIGIT +23.5% 37% ORGANIC GROWTH 10% organic growth CER Ra
Slide 7: CSR commitment accelerated
CSR COMMITMENT ACCELERATED 2028 › Group’s Climate Strategy H1 2024 FY 2023 target Presented during Ordinary Scope 1 & 2 CO2 emissions 147 149 107 Shareholders’ meeting in June 2024 (in thousand tons)4 Defines the Group’s priorities and Total Accident Rate (TAR)1 0.25 0.25 0.23 objectives to reduce C
Slide 8: Key H1 2024 events
Launch the execution of LEAP | 28 strategy › Launched during Capital Markets Day on March 20 › €200m share buyback program as part of LEAP | 28 › €100m realized on April 4 (Wendel placement) KEY H1 2024 › €100m executed in Q2 2024 EVENTS Long-term credit rating of A3 and a stable outlook assigned by
Slide 9: Focused portfolio
CREATE NEW STRONGHOLDS THROUGH ACQUISITIONS CONSUMER PRODUCTS SERVICES TECHNOLOGY Focused › Testing and certification services companies for electrical and electronics products in South Korea portfolio › c.€12 million revenue generated in 2023 ONETECH › 130+ employees › 3 laboratories › c.€5 million
Slide 10: Expand leadership in existing strongholds
40% 14% 40% BUILDINGS INFRASTRUCTURE OPEX CAPEX CAPEX SERVICES Global leadership in Portfolio expansion Market leadership in including services in construction supervision Expand code compliance and datacenters and project management services sustainability and Technical Due Diligence leadership in
Slide 11: Operational performance
OPERATIONAL OPERATIONAL Up to +100 bps FUNCTIONAL Up to +80 bps PERFORMANCE LEVERAGE Programs impact SCALABILITY Programs impact ✓ 1. Performance management 2. Process improvement Performance 3. Tech-augmented ways of working led execution IMPROVING OPERATIONAL LEVERAGE Innovate to modernize “how we
Slide 12: Financial review
02. = ~ » FJ Financial. review BUREAU VERITAS
Slide 13: A strong momentum maintained across the board
A STRONG MOMENTUM MAINTAINED ACROSS THE BOARD ORGANIC REVENUE GROWTH +9.2% Broad-based growth maintained with strong organic growth throughout the first half of 2024 ADJUSTED OPERATING MARGIN 15.0% Margin up 33 basis points at constant currency ADJUSTED EARNINGS PER SHARE GROWTH Solid EPS growth led
Slide 14: H1 2024 total revenue growth of 4.0%
H1 2024 TOTAL REVENUE GROWTH OF 4.0% REVENUE EVOLUTION VARIATION ANALYSIS In € million +9.3% at constant currency +9.2% +0.1% (5.3)% 3,021.7 2,904.1 1 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentation 14
Slide 15: Revenue growth by business
REVENUE GROWTH BY BUSINESS % of H1 H1 2024 Q2 2024 revenue 30% Buildings & Infrastructure +4.3% +4.9% 20% Agri-Food & Commodities +4.6% +6.0% 21% Industry (2.4)% +17.5% (2.3)% +18.2% 13% Consumer Products +7.3% +4.9% +8.3% +4.4% 8% Marine & Offshore +14.7% +15.8% 8% Certification +16.0% +18.0% 100%
Slide 16: Adjusted operating margin (1/2)
ADJUSTED OPERATING MARGIN (1/2) GROUP MARGIN EVOLUTION 33bps at constant currency 29bps 4bps (33)bps 15.3% 15.0% 15.0% Margin at H1 2023 Organic1 Scope Currency H1 2024 constant currency (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presen
Slide 17: Adjusted operating margin (2/2)
ADJUSTED OPERATING MARGIN (2/2) GROUP MARGIN EVOLUTION Total Organic Scope Currency H1 2024 H1 2023 change y/y (bp) y/y (bp) y/y (bp) y/y (bp) Marine & Offshore +24.5% 24.7% (20)bps +88bps - (108)bps Agri-Food & Commodities +12.3% 13.5% (115)bps (90)bps - (25)bps Industry +12.7% 12.3% +38bps +92bps
Slide 18: H1 2024 key financial metrics
H1 2024 KEY FINANCIAL METRICS FINANCIAL HIGHLIGHTS Change Change IN EUR MILLIONS H1 2024 H1 2023 y/y at constant y/y currency Revenue 3,021.7 2,904.2 +4.0% +9.3% Adjusted operating profit1 451.9 434.2 +4.1% +11.7% Adjusted operating margin1 15.0% 15.0% +0bps +33bps Operating profit 388.5 372.9 +4.2%
Slide 19: A steady increase in adjusted earnings per share
A STEADY INCREASE IN ADJUSTED EARNINGS PER SHARE (EPS) ADJUSTED EARNINGS PER SHARE IN € PER SHARE +16.3% at constant currency +4.5% on a reported basis €0.71 €0.61 €0.64 June 2023 June 2024 June 2024 19
Slide 20: Strong focus maintained on cash flow generation
STRONG FOCUS MAINTAINED ON CASH FLOW GENERATION Change IN EUR MILLIONS H1 2024 H1 2023 y/y A STRONG MANAGEMENT OF WORKING CAPITAL CONTROL DESPITE THE STRONG REVENUE INCREASE IN Q2 Profit before income tax 362,7 358.0 1,3% Elimination of cash flows from 7,9 16.1 (50,9)% financing and investing activi
Slide 21: A robust financial structure
A ROBUST FINANCIAL STRUCTURE INAUGURAL LONG TERM RATING AND RATED BOND DEBT MATURITY PROFILE AS OF JUNE 30, 2024 ISSUANCE 687 500 500 200 187 187 200 145 A3 rating 29 stable outlook 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 › Inaugural A3 rated bond issuance completed in May 2
Slide 22: Portfolio business highlights
03. Portfolio business highlights 22
Slide 23: Marine & Offshore
Key H1 2024 figures Business highlights MARINE & Divisional revenue Organic Revenue Growth OFFSHORE 41% › 5 Year Classification of Abu Dhabi Port Fleet • New Construction: strong double-digit 8% OF H1 GROUP REVENUE • Core In-service: double-digit › 24,000 TEU container ship for a large 46% • Service
Slide 24: Agri-Food & Commodities
Key H1 2024 figures Business highlights AGRI-FOOD & Divisional revenue Organic Revenue Growth COMMODITIES 32% • Oil & Petrochemicals: high single-digit › On site laboratories new contracts wins in Chile and West Africa • Metals & Minerals: low single-digit 20% OF YTD GROUP REVENUE 31% • Agri-Food: h
Slide 25: Industry
Key H1 2024 figures Business highlights Divisional revenue Organic Revenue Growth INDUSTRY 21% 11% • Oil & Gas Opex: strong double-digit › Opening of China's first large-chamber industrial product testing laboratory, • Oil & Gas Capex: strong double-digit 12% 21% OF YTD GROUP REVENUE • Power & Utili
Slide 26: Buildings & Infrastructure
Key H1 2024 figures Business highlights BUILDINGS & Divisional revenue Organic Revenue Growth › Technical inspection Construction of the INFRASTRUCTURE 50% • Europe: low-single-digit New Nancy Hospital in France • Americas: low-single-digit 30% OF YTD GROUP REVENUE 27% • Asia Pacific: high-single-di
Slide 27: Certification
Key H1 2024 figures Business highlights Divisional revenue Organic Revenue Growth CERTIFICATION 48% › 'Origine France Garantie' certification • QHSE & Specialized Schemes: double digit delivered for 2 electric models of French 8% OF YTD GROUP REVENUE • Sustainability* & Digital** : strong double dig
Slide 28: Consumer Products Services
CONSUMER Key H1 2024 figures Business highlights PRODUCTS Divisional revenue Organic Revenue Growth SERVICES 48% • Softlines, Hardlines, Toys: double-digit › Final Random Inspection for a large sport goods company in Germany • Healthcare*: high double-digit 13% OF YTD GROUP REVENUE 8% • Supply Chain
Slide 29: Outlook
04. Outlook 29
Slide 30: Upgrade in 2024 revenue outlook
UPGRADE IN 2024 REVENUE OUTLOOK Leveraging a healthy and growing sales pipeline, high customer demand for ‘new economy services’ and a strong underlying market growth, Bureau Veritas now expects to deliver for full year 2024: High Strong cash Improved single-digit flow, adjusted organic with a cash
Slide 31: Closing remarks
CLOSING REMARKS › Strong first half results and healthy backlog prompting an upgrade of FY 2024 revenue outlook › LEAP | 28 strategy ongoing execution › Positive secular market trends confirmed 31
Slide 32: Questions & Answers
QUESTIONS & ANSWERS H 1 2 0 2 4 R E S U L T S 32
Slide 33: 2024 & 2025 financial calendar
2024 & 2025 FINANCIAL CALENDAR Our information is certified with blockchain technology. Check that this presentation is genuine at www.wiztrust.com AGENDA › Q3 2024 revenue: October 23, 2024 › FY 2024 results: February 25, 2025 Bureau Veritas has been ranked in the Top 3 most transparent › Q1 2025 r
Slide 34: Contacts
CONTACTS I N V E S T O R R E L AT I O N S D E PA R T M E N T BUREAU VERITAS HEAD OFFICE – 40/52 BOULEVARD DU PARC 92200 NEUILLY-SUR-SEINE, FRANCE Laurent Brunelle Head of Investor Relations +33 (0)1 55 24 76 09 laurent.brunelle@bureauveritas.com Colin Verbrugghe Investor Relations Manager +33 (0)1 5
Slide 35: Appendix
05. Appendix: BUREAU VERITAS
Slide 36: Secular drivers by business line
SECULAR DRIVERS BY BUSINESS LINE Marine & Offshore Buildings & Infrastructure Main secular drivers SUSTAINABILITY DRIVE ENERGY TRANSITION & Main secular drivers ENERGY TRANSITION & URBANIZATION Renewal of ageing DECARBONIZATION DECARBONIZATION Population increase and World fleet Green shipping & dec
Slide 37: Bureau Veritas 2028 new value creation ambition
BUREAU VERITAS 2028 NEW VALUE CREATION AMBITION M&A acceleration Organic growth Performance led step change & and execution Cash generation Portfolio high-grading Mid-to-high single digit organic CAGR High single digit Consistent margin Above 90%2 Total revenue growth CAGR1 improvement1 cash convers
Slide 38: Bureau Veritas aims to be the leader in non-financial ratings
BUREAU VERITAS AIMS TO BE THE LEADER IN NON-FINANCIAL RATINGS Main ratings to nurture reputation with clients and trust with investors S&P Global Low risk Advanced Platinum ranked 1st in Research 70/100 76/100 Sustainability Yearbook 2024 July 2023 October 2022 and Consulting subindustry (Top 1% Pro
Slide 39: Portfolio of business
PORTFOLIO OF BUSINESS REVENUE BY BUSINESS ADJUSTED OPERATING PROFIT Marine & Offshore Marine & Offshore 13% 8% 14% 18% Agri-Food & Commodities Agri-Food & Commodities 8% 20% Industry Industry 11% 17% H1 2024 H1 2024 Buildings & Infrastructure Buildings & Infrastructure 30% Certification Certificatio
Slide 40: H1 2024 revenue by business
H1 2024 REVENUE BY BUSINESS REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE €M Organic Scope Currency Marine & Offshore Marine & Offshore 251.3 +14.7% - (4.8)% 13% 8% Agri-Food & Commodities Agri-Food & Commodities 613.9 +4.6% - (4.2)% 8% 20% Industry Industry 624.0 +17.5% (2.4)% (14.0)
Slide 41: H1 2024 revenue evolution by geography
H1 2024 REVENUE EVOLUTION BY GEOGRAPHY REVENUE BY GEOGRAPHIC AREA REVENUE EVOLUTION BY NATURE Africa, Middle East Organic Scope Americas 10% +0.3% +23.5% 27% 35% +0.2% H1 2024 +10.3% +8.7% Europe +5.1% (0.1)% 28% Americas Asia Pacific Europe Africa, Middle East Asia Pacific 41
Slide 42: Q2 2024 revenue by business
Q2 2024 REVENUE BY BUSINESS REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE €M Organic Scope Currency Marine & Offshore Marine & Offshore 129.2 +15.8% - (4.0)% 13% 8% Agri-Food & Commodities Agri-Food & Commodities 316.6 +6.0% - (3.5)% 9% 20% Industry Industry 328.4 +18.2% (2.3)% (14.0)
Slide 43: Q2 2024 revenue evolution by geography
Q2 2024 REVENUE EVOLUTION BY GEOGRAPHY REVENUE BY GEOGRAPHIC AREA REVENUE EVOLUTION BY NATURE Africa, Middle East Organic Scope Americas 10% +0.2% +27.0% 27% 34% +0.2% Q2 2024 +12.2% +10.3% Europe +4.6% (0.1)% 29% Americas Asia Pacific Europe Africa, Middle East Asia Pacific 43
Slide 44: Q2 2024 total revenue growth of 5.5%
Q2 2024 TOTAL REVENUE GROWTH OF 5.5% REVENUE EVOLUTION VARIATION ANALYSIS In € million +10.5% at constant currency +10.4% +0.1% (5.0)% 1,582.2 1,499.7 1 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentation 44
Slide 45: Adjusted operating profit by business
ADJUSTED OPERATING PROFIT BY BUSINESS Adjusted operating profit (€M) Adjusted operating margin (%) Change Change H1 2024 H1 2023 H1 2024 H1 2023 (%) (bp) Marine & Offshore 61.6 56.5 +9.1% 24.5% 24.7% (20)bps Agri-Food & Commodities 75.6 82.3 (8.2)% 12.3% 13.5% (115)bps Industry 79.3 76.1 +4.2% 12.7%
Slide 46: Consolidated income statement
CONSOLIDATED INCOME STATEMENT IN EUR MILLIONS H1 2024 H1 2023 Revenue 3,021.7 2,904.2 Service costs rebilled to clients 94.9 88.0 Revenue and services costs rebilled to clients 3,116.6 2,992.2 Purchase and external charges (948.8) (828.9) Personnel costs (1,598.7) (1,532.6) Taxes other than on incom
Slide 47: Consolidated statement of financial position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION IN EUR MILLIONS JUNE 30, 2024 DEC. 31, 2023 IN EUR MILLIONS JUNE 30, 20234 DEC. 31, 2023 Goodwill 2,181.7 2,127.4 Share capital 54.6 54.5 Intangible assets 366.6 360.0 Retained earnings and other reserves 1,575.4 1,881.6 Property, plant and equipment 418.
Slide 48: Consolidated statement of cash flow (1/2)
CONSOLIDATED STATEMENT OF CASH FLOW (1/2) IN EUR MILLIONS H1 2024 H1 2023 Profit before income tax 362.7 358.0 Elimination of cash flows from financing and investing activities 7.9 16.1 Provisions and other non-cash items 53.7 13.2 Depreciation, amortization and impairment 127.3 135.3 Movements in w
Slide 49: Consolidated statement of cash flow (2/2)
CONSOLIDATED STATEMENT OF CASH FLOW (2/2) IN EUR MILLIONS H1 2024 H1 2023 Capital increase 12.5 2.9 Purchases/sales of treasury shares (199.2) (1.1) Dividends paid (9.1) (13.3) Increase in borrowings and other debt 492.0 - Repayments of borrowings and other debt (6.2) (0.1) Repayments of amounts owe
Slide 50: Adjusted net financial debt
ADJUSTED NET FINANCIAL DEBT IN EUR MILLIONS JUNE 30, 2024 DEC. 31, 2023 JUNE 30, 2023 Bank borrowings due after one year 2,098.9 2,079.7 2,090.3 Bank borrowings due within one 531.1 26.8 526.8 year Bank overdrafts 4.3 4.4 4.6 Gross financial debt 2,634.3 2 110.9 2,621.7 Total cash and cash equivalen
Slide 51: Earnings per share
EARNINGS PER SHARE IN EUR MILLIONS H1 2024 H1 2023 FY 2023 Basic EPS 0.52 0.51 1.11 Basic adjusted EPS 0.64 0.61 1.27 Weighted average number of shares 451,680,634 452,412,873 453,009,724 Diluted EPS 0.51 0.51 1.10 Diluted adjusted EPS 0.63 0.61 1.26 Weighted average number of shares for diluted 455
Slide 52: H1 2024 restructuring: €7.8 million
H1 2024 RESTRUCTURING: €7.8 MILLION BY BUSINESS BY GEOGRAPHY Middle East & Africa 16% Agri-Food & Commodities Europe 24% 29% Industry 46% Buildings & Infrastructure 10% Certification Americas Consumer Products 35% Asia Pacific 15% 20% 5% 52
Slide 53: Well diversified sources of financing with a balanced maturity profile
WELL DIVERSIFIED SOURCES OF FINANCING WITH A BALANCED MATURITY PROFILE DEBT MATURITY PROFILE AS OF JUNE 30, 2024 DEBT BREAKDOWN 1% Other 0.4% 187 34% Bond Fixed rate USPP Floating rate Other 65% 500 500 500 99.6% 200 200 29 145 187 187 27% 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Slide 54: Currency mix in H1 2024
CURRENCY MIX IN H1 2024 REVENUE CURRENCY EXPOSURE CURRENCY CHANGE (YEAR ON YEAR) OTHER 18.2% EUR USD (and pegged) (0.1)% 29.4% SGD CNY (4.0)% MXN 1.2% AUD (2.6)% 1.2% BRL (0.2)% CAD (0.8)% JPY SAR 1.4% 1.4% GBP +2.5% INR (1.3)% CLP CLP (14.4)% 2.0% H1 2024 INR JPY (11.4)% 2.0% MXN +4.1% AED SGD (0.8
Slide 55: Definition of alternative performance indicators (1/5)
DEFINITION OF ALTERNATIVE PERFORMANCE INDICATORS AND RECONCILIATION WITH IFRS (1/5) 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 56: Definition of alternative performance indicators (2/5)
DEFINITION OF ALTERNATIVE PERFORMANCE INDICATORS AND RECONCILIATION WITH IFRS (2/5) 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 57: Definition of alternative performance indicators (3/5)
DEFINITION OF ALTERNATIVE PERFORMANCE INDICATORS AND Since a measurement period of 12 months is allowed for determining the fair value RECONCILIATION WITH IFRS (3/5) of acquired assets and liabilities, amortization of intangible assets in the year of acquisition may, in some cases, be based on a tem
Slide 58: Definition of alternative performance indicators (4/5)
DEFINITION OF ALTERNATIVE PERFORMANCE INDICATORS AND RECONCILIATION WITH IFRS (4/5) ADJUSTED EFFECTIVE TAX RATE ADJUSTED ATTRIBUTABLE NET PROFIT PER SHARE The effective tax rate (ETR) represents income tax expense divided by the Adjusted attributable net profit per share (adjusted EPS or earnings pe
Slide 59: Definition of alternative performance indicators (5/5)
DEFINITION OF ALTERNATIVE PERFORMANCE INDICATORS AND RECONCILIATION WITH IFRS (5/5) FREE CASH FLOW FINANCIAL DEBT Free cash flow represents net cash generated from operating activities Gross debt (or gross finance costs/financial debt) represent bank loans and (operating cash flow), adjusted for the
Slide 60: 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 61: Ownership and market data at June 30, 2024
OWNERSHIP AND MARKET DATA AT JUNE 30, 2024 A mettre à jour SHAREHOLDING STRUCTURE MARKET DATA • Listed on Euronext-Paris • Ticker: BVI • ISIN: FR0006174348 26.5% Wendel group • IPO on October 2007: €9.44/share • Share Price1: €25.86 The Capital Group • Market Cap.1: €11.76bn Executive Committee • Ma
Slide 62: www.bureauveritas.com
BUREAU VERITAS Shaping a World of Trust WWW.BUREAUVERITAS.comM iJ