Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — FY2012 Earnings Presentation
52 slides from Bureau Veritas Sa's earnings presentation, Feb 27, 2013
Slide 1: 2012 Full-Year Results
2012 FULL-YEAR RESULTS February 27, 2013
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
Slide 3: Agenda
Agenda HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES
Slide 4: Highlights
Didier Michaud-Daniel Chief Executive Officer HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES
Slide 5: Strong financial performance in 2012
Strong financial performance in 2012 (EUR) Revenue 3.9Bn +16% Organic growth +7.8% Adjusted operating profit 639m +17% Adjusted operating margin 16.4% +20 bps Adjusted EPS 3.65 +15% Operating cash flow 505m +25% Proposed dividend 1.83 +44% © - Copyright Bureau Veritas February 27, 2013 5
Slide 6: Increased exposure to fast growing zones
Increased exposure to fast growing zones ► 59,000 employees ► 1,330 offices & labs ► Fast growing zones(1) 54% Europe Middle East Africa 23,000 employees 640 offices & labs 49% (2) Americas Asia Pacific 16,000 employees 20,000 employees 270 offices & labs 420 offices & labs 23%(2) 28%(2) (1) Latin A
Slide 7: A balanced portfolio of businesses
A balanced portfolio of businesses FY 2012 Revenue Adjusted operating profit GSIT Marine GSIT 7% 8% Marine 9% 13% Consumer Products 11% Consumer Industry Products 17% 23% Industry Commodities 20% 18% Commodities 16% Certification IVS 12% IVS 8% 9% Certification Construction Construction 12% 10% 7% I
Slide 8: Excellence @ BV
Launched initiatives Client focus Excellence Lean management @ BV BV Academy Operating Leadership reviews rhythm Operating reviews Portfolio Portfolio management in Industry optimization Rightsizing of operations in Spain © - Copyright Bureau Veritas February 27, 2013 8
Slide 9: Rightsizing of operations in Spain
Rightsizing of operations in Spain Spain PF 2012 Revenue ► Portfolio reshuffling Infrastructure business disposal GSIT Marine Commodities 2% 6% A more resilient business profile 7% Industry ► Adaptation of operations Certification 16% 21% Restructuring / cost optimization ► Exceptional cost in 2012:
Slide 10: Acquisitions in attractive markets
Acquisitions in attractive markets 14 acquisitions in 2012, EUR 210m of combined annual revenues AcmeLabs #3 in upstream mining in Canada FY12 Rev: EUR 59m Expertise in geo-analytical and metallurgical testing services Employees: 920 TH Hill #1 standard for drill string design, manufacture, operatio
Slide 11: Financial Review
Sami Badarani Chief Financial Officer HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES
Slide 12: Summary income statement
Summary income statement (EUR millions) FY 2012 FY 2011 VLY Revenue 3,902.3 3,358.6 +16.2% Adjusted operating profit (1) 639.2 544.3 +17.4% Adjusted operating margin 16.4% 16.2% +20bps Other operating expenses (120.9) (64.0) Operating profit 518.3 480.3 +7.9% Net financial expense (69.3) (58.4) Inco
Slide 13: Revenue
Revenue +3.7% 3,902.3 (EUR millions) +4.7% +7.8% 3,358.6 +16.2% FY 2011 Organic External Currency FY 2012 Q4 2012 +7.0% +5.7% +2.3% 8.5% Pro-Forma organic growth (excluding infrastructure in Spain) ; 7.9% Q4 PF 14 acquisitions with annualized revenue of EUR 210m © - Copyright Bureau Veritas February
Slide 14: Revenue by business
Revenue by business (EUR millions) Revenue Total growth o/w Organic Industry 874.8 +31.7% +16.1% Commodities 713.6 +28.6% +13.5% ~60% Consumer Products 442.9 +16.8% +8.3% GSIT 281.8 +31.4% +28.2% Certification 344.1 +6.8% +4.5% IVS ~20% 480.5 +3.9% +1.9% Marine 317.0 (0.5)% (4.0)% ~20% Construction
Slide 15: Adjusted operating profit
Adjusted operating profit (EUR millions) FY 2012 FY 2011 VLY Operating profit 518.3 480.3 38.0 Amortization of acquisition intangibles 53.9 36.4 17.5 Goodwill impairment 25.3 16.1 9.2 Restructuring & disposals 38.4 9.0 29.4 Acquisitions related cost 3.3 2.5 0.8 Total other operating expenses 120.9 6
Slide 16: Adjusted operating profit by business
Adjusted operating profit by business (EUR millions) FY 2012 FY 2012 FY 2011 VLY (bps) margin Industry 126.5 79.5 14.5% +250 Commodities 99.0 70.7 13.9% +120 GSIT 59.5 40.5 21.1% +220 Construction PF(1) 54.7 50.8 12.8% +20 IVS 52.5 47.7 10.9% +60 Consumer Products 108.6 97.1 24.5% (110) Marine 84.7
Slide 17: Adjusted operating profit
Adjusted operating profit (EUR millions) 109.2 639.2 647.0 544.3 (14.3) Marine Rest of Certification business 2011 2012 PF 2012 16.2% (50)bps +70bps 16.4% PF 16.7% Adjusted operating margin up 40 bps in H2 2012 (vs H2 2011) PF = Pro-Forma: excluding Infrastructure in Spain © - Copyright Bureau Verit
Slide 18: Net financial expense
Net financial expense (EUR millions) FY 2012 FY 2011 Change Net finance cost (54.3) (41.7) (12.6) Foreign exchange losses (6.5) (8.0) +1.5 Interest cost on pension plans (4.8) (4.4) (0.4) Other financial expenses (3.7) (4.3) +0.6 Net financial expense (69.3) (58.4) (10.9) Net finance cost increase:
Slide 19: Adjusted net profit
Adjusted net profit (EUR millions) FY 2012 FY 2011 Change Profit before income tax 449.0 422.2 +6.3% Income tax expense (141.8) (116.9) Non controlling interests (9.6) (7.7) Attributable net profit 297.6 297.6 - Other operating expenses 120.9 64.0 Tax effect on other operating expenses (15.9) (13.5)
Slide 20: Summary cash flow statement
Summary cash flow statement (EUR millions) FY 2012 FY 2011 Change Profit before income tax 449.0 422.2 +6.3% Elimination of financing and investing activities 61.1 44.8 Provisions and other non-cash items 31.1 (4.9) Depreciation, amortization and impairment 167.9 129.1 Movements in working capital (
Slide 21: Adjusted net financial debt
Adjusted net financial debt (1) (EUR millions) 33.2 1,150.7 52.9 147.1 983.9 260.2 326.6 Dec. 2011 Levered free Acquisitions Dividends Stock options/ Other Dec. 2012 cash flow Share buybacks (1) Net financial debt after currency hedging instruments as defined for the Group’s covenants calculation ©
Slide 22: Optimized leverage ratio
Optimized leverage ratio (1) 2.51 1.78 1.94 1.93 1.89 1.60 1.59 1.38 1.31 June 08 Dec. 08 Dec. 09 June 10 Dec. 10 June 11 Dec. 11 June 12 Dec. 12 ► Available facilities at Dec 31, 2012: EUR 793m ► > EUR 1bn refinancing since January 1, 2012 Private placements, bond, syndicated loan ► More than 85% o
Slide 23: Summary financial position
Summary financial position (EUR millions) Dec. 2012 Dec. 2011 Change Goodwill 1,486.3 1,378.3 108.0 Net fixed assets 764.8 652.6 112.2 Working capital (WC) 272.8 237.0 35.8 Total Capital employed 2,523.9 2,267.9 256.0 Total equity 1,167.8 1,084.2 83.6 Adjusted net financial debt 1,150.7 983.9 166.8
Slide 24: Earnings per share (EPS) and dividend
Earnings per share (EPS) and dividend (EUR / share) Adjusted EPS (1) up 15% Proposed dividend up 44% 3.65 1.83 3.18 1.27 2011 2012 2011 2012 Basic EPS 2.72 2.70 A dividend of EUR1.83 per share will be proposed to the AGM of May 22, 2013, up 44% versus 2011 (1) Before amortization of intangibles, goo
Slide 25: Business Review
Didier Michaud-Daniel Chief Executive Officer HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES
Slide 26: Marine
Marine 2012 key BV marine statistics (EUR millions) (GRT millions) Revenue (0.5)% Fleet in-service Order book 318.7 317.0 91 86 68 77 58 65 55 FY’11 FY’12 30 36 31 29 17 22 16 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Margin 29.5% 26.7% 2012 Highlights 2013 Outlook Organic revenue down 4.0% C
Slide 27: Industry
Industry 2012 revenue breakdown (EUR millions) North America Latin America 9% 30% +31.7% 874.8 Revenue 664.0 Europe Fast 25% growing FY’11 FY’12 65% Middle East, India, Asia Pacific Margin 12.0% 14.5% Russia, Africa 21% 15% 2012 Highlights 2013 Outlook 16.1% organic revenue growth Continuous growth:
Slide 28: In-service Inspection & Verification (IVS)
In-service Inspection & Verification (IVS) 2012 revenue breakdown (EUR millions) Revenue +3.9% 480.5 France Europe 462.5 27% 53% FY’11 FY’12 USA 6% Margin 10.3% 10.9% Fast growing 14% 2012 Highlights 2013 Outlook 1.9% organic revenue growth Resilient organic growth in mature countries Growth in Euro
Slide 29: Construction
Construction 2012 PF revenue breakdown (EUR millions) Fast growing +1.1% 16% Revenue 442.7 447.6 France Japan 55% 9% FY’11 FY’12 USA 16% Other Europe Margin 10.9% 10.5% Spain 3% 1% 2012 Highlights 2013 Outlook Organic revenue down 5.0% Moderate slowdown expected in France (0.7)% excluding infrastruc
Slide 30: Certification
Certification 2012 revenue breakdown (EUR millions) Middle East, India, North America Russia, Africa Revenue +6.8% 3% 12% 344.1 322.1 Europe Asia Pacific 53% FY’11 FY’12 18% Fast growing Margin 20.6% 17.9% 38% Latin America 14% 2012 Highlights 2013 Outlook 4.5% organic revenue growth Resilient growt
Slide 31: Commodities
Commodities 2012 revenue breakdown (EUR millions) Agri +28.6% 713.6 Oil &Petrochemicals Revenue 9% (O&P) Coal 554.9 34% 13% FY’11 FY’12 Metals & Minerals Margin 12.7% 13.9% (M&M) 44% 2012 Highlights 2013 Outlook 13.5% organic revenue growth Resilient growth in O&P and Agri: new services and geograph
Slide 32: Consumer Products
Consumer Products 2012 revenue breakdown (EUR millions) +16.8% 442.9 Electrical & Textiles, Revenue 379.3 garments Electronics (E&E) & Softlines 25% 43% FY’11 FY’12 Toys & Hardlines Margin 25.6% 24.5% 32% 2012 Highlights 2013 Outlook 8.3% organic revenue growth Continuous strong growth in E&E and so
Slide 33: Acquisition of wireless testing leader in Germany
2012 revenue breakdown Founded in 1999 Germany North Headquartered in Germany 37% America 30% A global leader in wireless testing Strong reputation and technical capabilities Testing and certification for security, reliability, Asia functionality and interoperability of mobile 33% devices A fast gro
Slide 34: Government Services & International Trade
Government Services & International Trade 2012 revenue breakdown General Trade Government Revenue +31.4% 281.8 contracts & Auto 214.4 27% 51% FY’11 FY’12 Verification of conformity Margin 18.9% 21.1% 22% 2012 Highlights 2013 Outlook 28.2% organic revenue growth Solid outlook and high basis of compar
Slide 35: Outlook
Didier Michaud-Daniel Chief Executive Officer HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES
Slide 36: Outlook
Outlook ► Outlook The Group should deliver solid growth in 2013 revenue and adjusted operating profit, in line with BV2015 strategic plan and despite an ongoing challenging economic environment in Europe. ► BV2015 Financial objectives for 2012-2015 Revenue: +9-12% / year on average at constant excha
Slide 37: Agenda
Agenda HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES
Slide 38: Agenda: Appendices
Agenda HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDICES
Slide 39: Revenue by business
Revenue by business 2012 Q4 2012 Full-Year EURm Organic Scope FX EURm Organic Scope FX Marine 78.7 (7.2)% +0.1% +2.1% 317.0 (4.0)% - +3.5% 241.1 +15.2% +16.2% +2.0% 874.8 +16.1% +12.2% +3.4% Industry IVS 129.9 (1.3)% - +1.2% 480.5 +1.9% +0.2% +1.8% 115.7 (6.3)% +4.4% +0.8% 447.6 (5.0)% +3.7% +2.4% C
Slide 40: Adjusted operating profit by business
Adjusted operating profit by business Adj. operating profit Adj. operating margin (EUR millions) FY’12 FY’11 Change FY’12 FY’11 Change Marine 84.7 94.0 (9.9)% 26.7% 29.5% (280)bps Industry 126.5 79.5 +59.1% 14.5% 12.0% +250bps IVS 52.5 47.7 +10.1% 10.9% 10.3% +60bps Construction 46.9 48.3 (2.9)% 10.
Slide 41: Adjusted operating margin
Adjusted operating margin (EUR millions) H1 2012 H2 2012 H1 2011 H2 2011 Marine 29.4% 23.9% 30.8% 28.1% Industry 13.3% 15.4% 11.9% 11.7% IVS 9.4% 12.4% 8.8% 12.3% Construction 10.8% 10.2% 10.9% 10.9% Certification 17.6% 18.2% 20.3% 21.0% Commodities 13.2% 14.5% 11.9% 13.4% Consumer Products 22.9% 26
Slide 42: Consolidated income statement
Consolidated income statement (EUR millions) FY 2012 FY 2011 Revenue 3,902.3 3,358.6 Purchase and external charges (1,136.3) (995.5) Personnel costs (1,966.9) (1,709.4) Taxes other than on income (69.3) (71.1) Net (additions to)/reversals of provisions (10.5) 8.4 Depreciation and amortization (142.6
Slide 43: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income (EUR millions) FY 2012 FY 2011 Net profit 307.2 305.3 Currency translation differences (20.1) 14.2 Cash-flow hedges (11.0) (1.5) Income tax on items reclassified to profit or loss 1.6 (4.0) Total of other comprehensive income reclassified to profit or l
Slide 44: Consolidated financial position
Consolidated financial position (EUR millions) Dec. 2012 Dec. 2011 Goodwill 1,486.3 1,378.3 Intangible assets 385.4 333.0 Property, plant and equipment 379.4 319.6 Other non-current assets 179.2 184.9 Total non-current assets 2,430.3 2,215.8 Trade and other receivables 1,060.5 974.4 Other current as
Slide 45: Statement of change in equity
Statement of change in equity Attributable to (EUR millions) Currency Shareholders Share Share Other Total Minority translation of the capital premium reserves equity interests reserves Company December 31, 2011 13.3 147.0 103.9 820.0 1,084.2 1,065.4 18.8 Capital reduction (0.1) (46.4) - - (46.5) (4
Slide 46: Cash flow statement
Cash flow statement (EUR millions) FY 2012 FY 2011 Profit before income tax 449.0 422.2 Elimination of cash flows from financing and investing activities 61.1 44.8 Provisions and other non-cash items 31.1 (4.9) Depreciation, amortization and impairment 167.9 129.1 Movements in working capital attrib
Slide 47: Details of adjusted net financial debt calculation
Details of adjusted net financial debt calculation (EUR millions) Dec. 2012 Dec. 2011 Bank borrowings (non-current) 1,282.7 999.4 Bank borrowings (current) 119.6 253.0 Bank overdrafts 8.7 13.2 Gross financial debt 1,411.0 1,265.6 Total cash and cash equivalents 243.5 244.1 Net financial debt 1,167.5
Slide 48: Currency exposure
Currency exposure As of November 30, 2012 Revenue currency split Key sensitivities Other Group 27% 1% Euro Group Operating Euro Revenue Change vs. Profit Impact 32% Impact USD 0.15% 0.18% BRL AUD 0.07% 0.05% 5% JPY CNY 0.05% 0.09% 2% CNY 5% AUD BRL 0.05% 0.03% USD 7% GBP HKD 15% HKD 0.04% 0.06% 3% 4
Slide 49: Earnings per share
Earnings per share (EUR per share) FY 2012 FY 2011 Change Basic EPS(1) 2.70 2.72 (0.7)% Diluted EPS(2) 2.66 2.67 (0.4)% Basic adjusted EPS(1) 3.65 3.18 +14.8% Diluted adjusted EPS(2) 3.59 3.13 +14.7% (1) Calculated on weighted average number of shares of 110,194,808 in 2012 and 109,354,907 in 2011 (
Slide 50: 14 acquisitions completed in 2012
14 acquisitions completed in 2012 Name Date Description Country Pockrandt Jan. 12 Non Destructive Testing Germany Acme Feb. 12 Metals & Minerals Testing Canada HuaXia Feb. 12 Construction compliance conformity China ACR Feb. 12 Infrastructure compliance conformity France JCS Feb. 12 Food laboratory
Slide 51: Shareholder structure
Shareholder structure Market capitalization of EUR 10.6 bn at February 25, 2013 Ownership structure (1) Treasury shares Free Float 0.4% Wendel 46.9% 50.9% Employees Managers 0.6% 1.2% (1) as of December 31, 2012 © - Copyright Bureau Veritas February 27, 2013 51
Slide 52: Bureau Veritas
BUREAU VERITAS Move Forward with Confidence*