Brunel International N.v. · EURONEXT:BRNL
Brunel International — Investor Day (November 2023)
50 slides from Brunel International's investor day presentation, Nov 28, 2023
Slide 1: Brunel Capital Markets Day 2023: To the next level
Brunel Capital Markets Day 2023 “To the next level“ Amsterdam, November 28th 2023
Slide 2: Speakers
Speakers 1. Purpose and culture Jilko Andringa CEO Brunel 2. Update on our momentum Peter de Laat 3. Evolving markets and trends CFO Brunel 4. Taking Brunel to the next level Tom Hopkinson Founder and CEO 5. Financial performance and outlook Taylor Hopkinson 2
Slide 3: Agenda
1. Purpose and culture 2. Update on our momentum 3. Evolving markets and trends 4. Taking Brunel to the next level 5. Financial performance and outlook 3
Slide 4: Our history
Purpose Momentum Markets Next Level Financials Our history First office First in the international Launch of Netherlands office Brunel Energy IPO 1975 1987 1995 1997 Implementation Launch of Major client wins of one global Brunel in Conventional database Foundation Energy 2013 2012 2003 +1997 +2005
Slide 5: Who we are
Purpose Momentum Markets Next Level Financials Who we are Connecting specialists to pioneering projects Brunel is a global specialist delivering customised project and workforce solutions to drive sustainable industry transformations through technology and talent 5
Slide 6: Our culture
Purpose Momentum Markets Next Level Financials Our culture We are proud of our culture at Brunel. We are explorers, developers and entrepreneurs in the spirit of our namesake Isambard Kingdom Brunel. We are people from many nations, working around the globe, united by our pursuit of quality, by mutu
Slide 7: Why do we do it?
Purpose Momentum Markets Next Level Financials Our purpose We are a recognised leader in customised workforce Why and project solutions. By connecting our specialists to do we pioneering projects, we empower our clients to lead the way in do it? industry transformations, working with them to create
Slide 8: Our ESG commitment
Purpose Momentum Markets Next Level Financials Our ESG commitment Our environmental commitment Build a better planet for our future professionals Our social commitment Build a better future for professionals Responsible governance Integrity and compliance define our leadership style 8
Slide 9: Agenda
1. Purpose and culture 2. Update on our momentum Agenda 3. Evolving markets and trends 4. Taking Brunel to the next level 5. Financial performance and outlook 9
Slide 10: Well underway with phase 5 since we started in 2021
Purpose Momentum Markets Next Level Financials Well underway with phase 5 since we started in 2021 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 1975 - 1990 1990 - 2005 2005 - 2014 2015 - 2020 2021 - Today Start-up and Creating a global ‘Follow-the-client’ Transition driving group Momentum: post-pandemic
Slide 11: Accelerated momentum
Purpose Momentum Markets Next Level Financials Accelerated momentum Gross profit (EUR m) Conversion ratio (1) EBIT (EUR m) Target: YoY growth in each region Target: >30% in 2025 Target: 6% margin in 2025 4.0% 5.5% 19 16% 73 24% 26% 8% 25% ~0% 18% 45 17% 8 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3
Slide 12: Delivering on our targets
Purpose Momentum Markets Next Level Financials Delivering on our targets Metric Target 2025 Status Revenue Revenue High single-digit growth ✓ Revenue/FTE Higher billing rates each year ✓ GP% GP% growth in each region 5/8: ✓ 3/8: Focus point Profitability EBIT% > 6% in 2025 On track Conversion ratio(
Slide 13: And still room for improvement
Purpose Momentum Markets Next Level Financials And still room for improvement ▪ Ratio Directs/Indirects shows potential for growth ▪ Rightsize underperforming teams and infrastructure to grow conversion Netherlands ▪ Fast application of proven cost control capabilities ▪ Leverage IT infrastructure w
Slide 14: Realising our goals across all strategic pillars
Purpose Momentum Markets Next Level Financials Realising our goals across all strategic pillars Diversification Specialisation Capability building Disciplined execution ▪ Knowledge and service ▪ Attraction and retention of ▪ New services added (RPO, ▪ Process clarity and KPI leadership established i
Slide 15: More diversified with momentum across all verticals
Purpose Momentum Markets Next Level Financials More diversified with momentum across all verticals Vertical diversification Client distribution 2020 (Gross profit) 2020 Active clients: 1,300 20% 26% 32% 1% 9% Conventional Energy 7% 6% Renewables 80% 6% 13% Life Sciences Top 10 Mining Future Mobility
Slide 16: Attracting and retaining specialised talent
Purpose Momentum Markets Next Level Financials Attracting and retaining specialised talent Talent scarcity Online Marketing across the funnel Brunel’s response: ▪ Best projects in chosen markets attract Awareness specialists 149m impressions ▪ Recruit and mobilise specialists globally ▪ Best-in-clas
Slide 17: Expanding our capabilities
Purpose Momentum Markets Next Level Financials Expanding our capabilities Project & Consulting Workforce Global Mobility Solutions Solutions Solutions Brunel provides custom support, an Brunel leverages advanced recruitment Brunel seamlessly transfers individuals, international network and local kno
Slide 18: Delivering growth with operational leverage
Purpose Momentum Markets Next Level Financials Delivering growth with operational leverage Disciplined execution Delivery ▪ Organic growth 2020 2023 (LTM) Growth ▪ Clear accountability and KPI steering 14% Gross profit 191 273 ▪ Disciplined process improvement CAGR ▪ Data-driven market approach and
Slide 19: Key enablers across the strategy pillars
Purpose Momentum Markets Next Level Financials Key enablers across the strategy pillars Diversification Specialisation Capability building Disciplined execution Strong brand Entrepreneurial culture Globally connected, locally executed Scalable global IT platform and digital tools Acceleration throug
Slide 20: Mutually beneficial combination
Purpose Momentum Markets Next Level Financials Mutually beneficial combination ▪ Brunel’s global network supports Taylor Renewables gross profit per region Hopkinson expansion to service client needs on a broader basis ▪ Improving ability to win projects previously out of reach for each individual b
Slide 21: Client case: One of the world's largest offshore wind farms
Purpose Momentum Markets Next Level Financials Client case: One of the world’s largest offshore wind farms Project overview ▪ Providing solutions for client’s staff related to global immigration, employment, payroll, logistics and other services in locations where client does not have its own entiti
Slide 22: Taylor Hopkinson – The leading renewables specialist
Purpose Momentum Markets Next Level Financials Taylor Hopkinson – The leading renewables specialist 22
Slide 23: Agenda
1. Purpose and culture 2. Update on our momentum Agenda 3. Evolving markets and trends 4. Taking Brunel to the next level 5. Financial performance and outlook 23
Slide 24: Global network, local presence
Purpose Momentum Markets Next Level Financials Global network, local presence 8 Brunel hubs Norway Denmark The Netherlands Canada United Kingdom Poland 45 Belgium Czech Republic Kazakhstan France Austria Germany Romania Switzerland Spain Albania Italy Greece South Korea Iraq Countries United States
Slide 25: Knowledge leadership in chosen verticals
Purpose Momentum Markets Next Level Financials Knowledge leadership in chosen verticals Conventional Energy Renewables Mining Life Sciences How are we organised? How do we build success? ▪ Led by regional P&L with vertical organisation across ▪ Knowledge leadership established through marketing and
Slide 26: Diversified portfolio across global and local verticals
Purpose Momentum Markets Next Level Financials Diversified portfolio across global and local verticals Global verticals Local verticals Conventional Renewables Mining Life Sciences Future Mobility Infrastructure Industrials & Public Sector Financial Energy Technology Services DACH Netherlands Austra
Slide 27: Conventional Energy – Continued tailwind going forward
Purpose Momentum Markets Next Level Financials Conventional Energy – Continued tailwind going forward Market outlook Global Oil & Gas Upstream CAPEX USD bn (nominal) 700 600 500 400 300 200 100 0 2015 2016 2017 2018 2019 2020 2021 2022 2025 2030 Sources: IEF, S&P Global commodity insights Growth dri
Slide 28: Renewables – Offshore and hydrogen boosting growth
Purpose Momentum Markets Next Level Financials Renewables – Offshore and hydrogen boosting growth Market outlook Global offshore wind CAPEX rise as expansion ramps up USD bn Capacity, GW 100 400 80 300 60 200 40 20 100 0 0 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F 2013 2012 2014 20
Slide 29: Mining – Demand for critical metals drives Brunel prospects
Purpose Momentum Markets Next Level Financials Mining – Demand for critical metals drives Brunel prospects Market outlook EVs have major potential to reshape demand drivers mnt EV share of demand 4,000 100% 3,000 80% Implied EV copper demand 60% 2,000 Implied EV nickel demant 40% EV nickel demand sh
Slide 30: Mining careers – Pioneering the future
Purpose Momentum Markets Next Level Financials Mining careers – Pioneering the future 30
Slide 31: Life Sciences – Ageing population fuelling growth
Purpose Momentum Markets Next Level Financials Life Sciences – Ageing population fuelling growth Market outlook Pharmaceuticals market forecast USD bn % of GDP 3,000 1.55 2,500 1.50 2,000 1,500 1.45 1,000 1.40 500 0 1.35 2018 2019 2020 2021 2022 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F 2031F
Slide 32: Megatrends impacting Brunel
Purpose Momentum Markets Next Level Financials Megatrends impacting Brunel Energy security & energy transition ▪ Very high capital investment needed in decades to come ▪ Less risk due to diversification (proof: Brunel’s performance after letting go Geopolitical instability of Russia region) ▪ Presen
Slide 33: Agenda
1. Purpose and culture 2. Update on our momentum Agenda 3. Evolving markets and trends 4. Taking Brunel to the next level 5. Financial performance and outlook 33
Slide 34: Brunel differentiators
Purpose Momentum Markets Next Level Financials Talent development Commercial strength Industry leadership ESG Capabilities Global network of specialists Brunel differentiators Compliance & HSE Digital journey Online brand & presence Global recruitment platform Contractor and client satisfaction Winn
Slide 35: Global recruitment platform
Purpose Momentum Markets Next Level Financials Global recruitment platform Contract Candidate AI Profile AI Validation Client Validation Creation Matching Data Real-time Steering Automated Next Best Enrichment Information Retention Project CRM/ATS – Mercury Digital Onboarding Time & Expense, Pay, Bi
Slide 36: Digital specialist journey
Purpose Momentum Markets Next Level Financials Digital specialist journey Orientation Application Onboarding Daily work CES – Job search 3.81/5 CES – Application flow 4.70/5 NPS – Specialist start 56 NPS – Specialist end 51 Digital onboarding course via app and web for specialists starting at Brunel
Slide 37: Ready for the Next Level
Purpose Momentum Markets Next Level Financials Ready for the Next Level Key value 4. Disciplined 1.Diversification Diversification 2.Specialisation Specialisation Capability 3. Capabilities building Disciplined execution drivers Execution ▪ Scale in all our verticals ▪ Upskilling ▪ End-to-end soluti
Slide 38: Next Level
Purpose Momentum Markets Next Level Financials Next Level We are a recognised leader in customised and sustainable workforce and project solutions. By connecting the expertise of our specialists to pioneering projects, we empower our clients to lead the way in current and future industry transformat
Slide 39: Renewed and highly experienced executive team
Purpose Momentum Markets Next Level Financials Renewed and highly experienced executive team Jilko Andringa Peter de Laat Tania Sinibaldi Jon Proctor Joanita Oud Stefan de Boer Chief Executive Chief Financial Managing Director Managing Director Global Head of Global Head of Officer Officer of Operat
Slide 40: Agenda
1. Purpose and culture 2. Update on our momentum Agenda 3. Evolving markets and trends 4. Taking Brunel to the next level 5. Financial performance and outlook 40
Slide 41: 2025 target progress update
Purpose Momentum Markets Next Level Financials 2025 target progress update Metric Target 2025 2020 2021 2022 2023 Sep (LTM) Revenue (growth) High single-digit (14%) 1% 31% 17% Revenue/FTE (growth) Higher billing rates each year 0% 19% 16% 18% GP% YOY GP% growth in each region - On track On track On
Slide 42: Regional financial performance
Purpose Momentum Markets Next Level Financials Regional financial performance Middle East 2023 Q3 LTM, in EUR m DACH Netherlands Australasia Asia Americas ROW Total (1) & India Contracting revenue 241 207 182 182 156 170 171 1,277 Perm revenue 6 1 2 1 0 5 11 25 Total revenue 247 208 184 183 157 175
Slide 43: Regional gross profit and conversion ratio development
Purpose Momentum Markets Next Level Financials Regional gross profit and conversion ratio development Gross profit regional mix Gross profit product mix Regional conversion ratios Values in EUR m Values in EUR m 273 273 2023 2017 2020 Q3 LTM 33 25 DACH 27% 23% 29% 24 191 24 191 Netherlands 20% 23% 3
Slide 44: Strong operating leverage going forward
Purpose Momentum Markets Next Level Financials Strong operating leverage going forward Revenue (EUR m) Gross Profit (EUR m) EBIT (EUR m) Incremental Margin Conversion ratio Conversion ratio 21% 21% 15% 24% >50% +100 +20 +15% +15% +10 1,182 252 61 +45% 893 191 29 FY20 FY22 Illustrative FY20 FY22 Illu
Slide 45: Impact of seasonality and FX
Purpose Momentum Markets Next Level Financials Impact of seasonality and FX Seasonality Foreign Exchange Impact of 10% weakening of EUR against USD: Per working day impact, in EUR m Revenue 5.5 ▪ Revenue is the result of number Impact in EUR m of working specialists, day rate, Gross profit 2.2 numbe
Slide 46: Deep dive on cash flow and working capital
Purpose Momentum Markets Next Level Financials Deep dive on cash flow and working capital Working capital (% of revenue) Cash flow development (EUR m) 1,303 1,229 1,182 14% 1,041 14% 14% 14% 14% 13% 915 900 885 893 790 93 12% 88 12% 12% 61 63 48 42 56 34 29 42 18 20 27 26 16 17 17 (6) 2015 2016 2017
Slide 47: Significant investments in growth
Purpose Momentum Markets Next Level Financials Significant investments in growth Cash development (EUR m) 154 (130) (29) 155 (26) (74) (39) 11 Net cash Operating profit ∆ Working capital Acquisitions CAPEX Dividend & Lease expense Net cash 1-Jan-21 treasury shares 30-Sep-23 47
Slide 48: Capital allocation framework
Purpose Momentum Markets Next Level Financials Capital allocation framework Cash to be used for: Net cash balance (EUR m) 30 Sep 2023 ▪ Working capital to support day-to-day business and continued growth Cash & cash equivalents 75 ▪ CAPEX investments ▪ Facilitate payout of dividend in line with poli
Slide 49: The Brunel investment case
Purpose Momentum Markets Next Level Financials The Brunel investment case Next level targets 2027 Key drivers ▪ Favorable markets Revenue GP High single- High single- ▪ Entrepreneurship and innovation digit YOY digit YoY growth growth ▪ Growing market share Financial ▪ Operating leverage EBIT/GP > 3
Slide 50: Connect with us
Connect with us brunel.net