Bureau Veritas Sa · EURONEXT:BVI

Bureau Veritas Sa — Société Générale – Premium Conference 2011

36 slides from Bureau Veritas Sa's conference presentation, Dec 2, 2011

  1. Slide 1: Société Générale – Premium Conference

    Société Générale – Premium Conference December 2, 2011 Frank Piedelièvre Chief Executive Officer Copyright©2011 Bureau Veritas - All rights reserved.

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains forward-looking statements which are based on current plans and forecasts of Bureau Veritas’ management. Such forward-looking statements are by their nature subject to a number of important risk and uncertainty factors such as those described in the Document de

  3. Slide 3: Agenda

    Agenda Bureau Veritas at a glance 2012 – 2015 Strategic plan Q3 – 9M 2011 revenue Outlook Appendix Copyright©2011 Bureau Veritas - All rights reserved. December 2011 3

  4. Slide 4: Bureau Veritas at a glance

    Bureau Veritas at a glance Copyright©2011 Bureau Veritas - All rights reserved.

  5. Slide 5: Bureau Veritas at a glance

    Bureau Veritas at a glance 9M 2011 revenue by business Founded in 1828 Marine Commodities 10% 16% A global leader in conformity assessment, certification and testing services. Government Services Industry 7% 21% Key figures Revenues(1) €3.3bn Consumer Products 12% Adj. operating profit(1) €534m Cert

  6. Slide 6: Our Profession: QHSE Compliance

    Our Profession: QHSE Compliance Bureau Veritas helps its clients to improve their performances by offering services and innovative solutions in order to ensure that their products, infrastructure and processes meet standards and regulations Quality – Health – Safety – Environment – Social Responsibi

  7. Slide 7: The largest service offering of the TIC industry

    The largest service offering of the TIC industry Revenues* (€m) 3,500 3,000 2,500 2,000 1,500 1,000 500 SGS BV Intertek Dekra TUV TUV DNV Applus TUV Lloyd's Campbell** UL Süd Rheinland Nord Register Marine Industry IVS Construction Certification Consumer Products Gov. contracts Oil Commodities Miner

  8. Slide 8: A proven resilience to macroeconomic downturn

    A proven resilience to macroeconomic downturn Revenues & adjusted operating margin Margin +180 Revenue improvement bps CAGR(1) 15% Adjusted operating margin 16.4% 16.7% 16.3% 14.8% 15.1% 15.2% 14.4% 14.5% 13.2% 11.9% 10.4% 3,277 2,648 2,930 2,549 1,846 2,067 1,422 1,647 1,012 1,145 1,283 2001 2002 2

  9. Slide 9: 2012-2015 Strategic plan

    2012-2015 Strategic plan BV 2015 Moving Forward with Confidence Copyright©2011 Bureau Veritas - All rights reserved.

  10. Slide 10: IPO commitments fully delivered

    IPO commitments fully delivered 2007-2011 2007-2011 Commitments Achievements Top-line: Double 2006 revenue(1) Adjusted operating margin(2): +150bps vs. 2006 Adjusted net income(2): +15%-20% p.a. on average (1) At constant exchange rates (2) Before expense relative to acquisitions and non-recurring i

  11. Slide 11: A proven resilience to macroeconomic downturn

    A proven resilience to macroeconomic downturn 2006-2007* 2008-2010* World GDP Growth World Trade Growth Bureau Veritas Organic Growth Bureau Veritas Adj. Operating Margin Source: International Monetary Fund, World Economic Outlook Database, April 2011 * Average over the period Copyright©2011 Bureau

  12. Slide 12: Sustainable market growth drivers

    Sustainable market growth drivers 2012-2015 assumptions 2012-2015 drivers ►Persisting low growth in mature ► QHSE regulations strengthening economies ► Industrialization of fast-growing ►Resilient emerging markets economies ►Growing international trade, ► Rising living standards and QHSE with increa

  13. Slide 13: 2015 objectives and levers

    2015 objectives and levers Our objectives Revenue Adjusted Adjusted Leverage growth operating margin EPS(2) ratio(3) +9% to +12% p.a. +100 to 150 bps(1) +10% to +15% p.a. < 1.0x 2/3 organic 1/3 external Talent-based Technology and Scalable organization innovation network Our levers (1) Increase vs.

  14. Slide 14: BV2015 growth initiatives

    BV2015 growth initiatives “Fill the Adjacent matrix” services and markets 9% to 12% average top-line growth p.a. Bolt-on acquisitions Copyright©2011 Bureau Veritas - All rights reserved. December 2011 14

  15. Slide 15: Changing growth patterns across markets

    Changing growth patterns across markets 2010 Market growth trends estimated 07-11 12-15 size (€bn) Marine 3 Consumer products 7 Commodities 5 Gov. services(1) 4 Industry 15 Construction 26 IVS 10 Certification 4 (1) Including Automotive Source: Bureau Veritas, McKinsey Copyright©2011 Bureau Veritas

  16. Slide 16: Develop adjacent services and markets

    Develop adjacent services and markets Non exhaustive Consumer Products Oil & Petrochemicals Marine ► Food ► Biofuels ► Bunker fuels ► Electronics and Electrical ► Petrochemicals ► Inland navigation ► Additives ► New regulations ► Upstream GSIT Industry Construction ► Single-window ► Oil & Gas Upstre

  17. Slide 17: Keep a #1 role in the TIC industry consolidation

    Keep a #1 role in the TIC industry consolidation … boosting organic growth … and complementing our global initiatives network ► Commodities network ► Non Destructive ► Mature economies: US, Canada, Testing ► O&P upstream Germany ► Drilling ► Food ► Fast-growing economies: China, South ► Power and Ea

  18. Slide 18: Narrowing profitability range

    Narrowing profitability range 2011LTM Adj. Profitability trends 2011 Operating 07-11(2) 12-15 Margin(1) Marine 28.8% +450bps Consumer products 26.8% +470bps Commodities 12.0% n.a. Gov. services 17.4% +590bps Industry 11.6% +10bps 2015 Construction 10.8% +130bps IVS 11.6% +110bps Certification 20.9%

  19. Slide 19: Targeted margin improvement initiatives

    Targeted margin improvement initiatives More value More Development of added-services upstream testing Automation Lean Capex IT/IS Management Back office Pricing and offshoring Scalability contract management Copyright©2011 Bureau Veritas - All rights reserved. December 2011 19

  20. Slide 20: Q3 – 9M 2011 Revenue

    Q3 – 9M 2011 Revenue Copyright©2011 Bureau Veritas - All rights reserved.

  21. Slide 21: Revenue by business

    Revenue by business Q3 2011 9M 2011 €m Organic Scope FX €m Organic Scope FX Marine 76.2 (1.0)% - (2.5)% 235.9 +1.5% - (1.1)% Industry 183.6 +18.7% +2.2% (2.8)% 520.8 +17.4% +1.4% (0.9)% IVS 101.5 +3.0% +0.2% (1.7)% 316.0 +3.1% - (0.9)% Construction 100.8 (4.5)% +0.5% (2.2)% 304.9 (1.9)% (0.7)% (1.2)

  22. Slide 22: Marine

    Marine 9M 2011 Highlights (€m) 79.0 76.2 ► New ships and equipment certification (1.0)% (2.5)% (53% of revenues) New orders intake at GRT 5.8m (523 ships) (3.5)% Surge in deliveries at GRT 9.7m (+18% yoy) Total variation Order book at GRT 24.0m Market share up at 22.0% in number of ships and Q3 2010

  23. Slide 23: Industry

    Industry (€m) 9M 2011 Highlights +18.7% +2.2% 183.6 155.5 ► Sustained growth across markets and geographies (2.8)% ► Key wins: Large 4-5 years QA/QC frame agreement signed with 2 Total Oil majors +18.1% variation 4 large procurement services contracts with Petrobras Hyundai: 2nd party inspection con

  24. Slide 24: In-Service Inspection & Verification

    In-Service Inspection & Verification (€m) 9M 2011 Highlights +0.2% 101.5 99.9 +3.0% ► North Europe and France growing (1.7)% ► South Europe slightly down (Spain, Italy) Total +1.5% ► Large contract with Inditex Group: new shops/malls variation site inspections throughout Europe Q3 2010 Organic Exter

  25. Slide 25: Construction

    Construction (€m) 9M 2011 Highlights 107.5 +0.5% 100.8 ► France and Japan growing (4.5)% (2.2)% ► Continuous weakness in Spain and the USA Total (6.2)% ► Acquisitions: Civil Aid (India) €3m of revenue in variation 2010 ► Large QA/QC contract won in China with Q3 2010 Organic External Currency Q3 201

  26. Slide 26: Certification

    Certification (€m) 9M 2011 Highlights 74.6 +0.9% 71.0 ► +7.4% organic growth adjusted for the GSAC (3.5)% contract (French civil aviation authority) (2.2)% terminated in October 2010 Total (4.8)% ► Climate and sustainability schemes (JI/CDM, variation Biofuels, SA 8000, ISOP 50001) Q3 2010 Organic E

  27. Slide 27: Commodities

    Commodities (€m) +91.3% 139.7 9M 2011 Highlights (2.2)% ► US O&P: continuous ramp up after weak start of the +8.5% year, new projects coming on line 70.7 ► Strong organic growth in metals and minerals Total upstream despite high comps +97.6% variation Q3 2010 Organic External Currency Q3 2011 Revenu

  28. Slide 28: Consumer Products

    Consumer Products (€m) 9M 2011 Highlights +0.3% +0.6% 99.6 104.6 ► Growing segments: E&E (testing and (5.7)% certification in Greater China), inspection and social audits (increased presence with large Total variation (4.8)% accounts) ► Reduced volumes in Toys testing in China Q3 2010 Organic Extern

  29. Slide 29: Government Services & International Trade

    Government Services & International Trade (€m) 9M 2011 Highlights +15.0% 57.9 +11.1% ► Increased volumes and FOB value of 47.3 (3.7)% inspected goods ► Strong recovery in Ivory Coast since June Total +22.4% 2011 variation ► New Verification Of Conformity contract in Iraq ► Auto Reg acquisition: vehi

  30. Slide 30: Outlook

    Outlook Copyright©2011 Bureau Veritas - All rights reserved.

  31. Slide 31: Outlook

    Outlook The Group will deliver strong growth in FY 2011 revenues and adjusted operating profit at constant currencies: ► Mid-single digit organic growth in H2 2011 The Group announced BV2015 strategic plan on September 20, 2011 and set financial objectives for 2012-2015: ► Average annual revenue gro

  32. Slide 32: Appendix

    Appendix Copyright©2011 Bureau Veritas - All rights reserved.

  33. Slide 33: Superior cash flow generation

    Superior cash flow generation Historical CF from operating activities 2012-2015 (€m) ► Disciplined Working Capital €1.4Bn management over 4Y 419 397 Management focus and incentive 315 235 WCR to represent 6% to 7% of revenues ► Capex representing 3% to 4% p.a. of revenues 2007 2008 2009 2010 Expansi

  34. Slide 34: A long-maturity debt profile

    A long-maturity debt profile Financial debt(1) maturities 2012-2015 (€m) ► €190m of undrawn facilities 438 €168m of cash at June, 30, 2011 190 undrawn ► Refinancing ahead of 2013 364 (Private Placement, bond) 236 thanks to strong financial profile 200 and high shadow rating 30 2011 2012 2013 2014 20

  35. Slide 35: Currency exposure

    Currency exposure Revenue Currency Split(1) Key Sensitivities(1) Group 1% Euro Group Operating Revenue Others 22% Change vs. Profit Impact Impact Euro 37% BRL 5% USD 0.16% 0.21% CNY 5% CNY 0.05% 0.08% JPY 2% AUD 6% HKD 0.04% 0.09% GBP 3% HKD 4% GBP 0.04% 0.02% USD 16% AUD 0.07% 0.03% 1. As of May 31

  36. Slide 36: Bureau Veritas – Move Forward with Confidence

    BUREAU |BUREAU | VERITAS Move Forward with Confidence

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