Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — Q3 2017 Earnings Presentation
30 slides from Bureau Veritas Sa's earnings presentation, Oct 25, 2017
Slide 1: Q3 Fiscal Revenue
2017 © Bureau Veritas Q3 Fiscal Revenue October 25, 2017
Slide 2: Highlights
Highlights BUREAU VERITAS © Bureau Veritas
Slide 3: Q3 2017 Highlights
Q3 2017 Highlights ▪ Group revenue at €1.13bn, up + 3.8% y/y at constant currency ▪ Organic revenue growth at +2.2% ▪ 4 out of 6 businesses posting organic growth, above +3% ▪ All 5 Growth Initiatives maintaining strong momentum, up organically +7.2% y/y (vs. H1 +7.1%) ▪ External growth of +1.6% ▪ 4
Slide 4: Growth Initiatives maintained strong momentum in Q3
5 Growth Initiatives maintained strong momentum in Q3 B&I +4.4% * OPEX +5.0% * Q3 2017: +7.2% organic growth Agri-Food +10.3% * vs. +7.1% in H1 2017 vs. +4.9% in 2016 Automotive +13.2% * © Bureau Veritas SmartWorld +17.3% * 0 Q3 2017 total revenue for every 200 * The above figures represent the grow
Slide 5: Financial Review
Financial Review © Bureau Veritas
Slide 6: Q3 2017 Revenue Growth
Q3 2017 Revenue Growth (in € millions) +3.8% at constant currency 1,136.3 +2.2% +1.6% - 4.1% 1,132.7 Q3 2016 Organic* Acquisitions Currencies Q3 2017 © Bureau Veritas *Organic growth is the increase in revenue versus last year, at constant currency and scope (i.e. acquisitions excluded) Q3 2017 Reve
Slide 7: 9 Months 2017 Revenue Growth
9 Months 2017 Revenue Growth (in € millions) 4.3% at constant currency +1.6% +2.7% - 0.3% 3,492.8 3,357.7 9 Months 2016 Organic* Acquisitions Currencies 9 Months 2017 © Bureau Veritas *Organic growth is the increase in revenue versus last year, at constant currency and scope (i.e. acquisitions exclu
Slide 8: Q3 2017 revenue growth by business
Q3 2017 revenue growth by business % @ constant revenue currency 7% Certification 5.2% +5.2% 23% Building & Infrastructure 4.0% 5.5% +9.5% 15% Consumer Products 3.7% 1.7% +5.4% 23% Agri-Food & Commodities 3.1% 3.4% +6.5% 8% Marine & Offshore (1.8)% (1.8)% 24% Industry (2.6)%* (0.7)% (3.3)% © Bureau
Slide 9: Q3 2017 Overview of BV 2020 Growth Initiatives
Q3 2017 Overview of BV 2020 Growth Initiatives (in € millions) V2 17.5 (46.0) (0.1) 25.1 Base business 5 Growth contributing initiatives (0.0)pts to contributing organic growth +2.2pts to 1,136.3 organic growth 1,132.7 Q3 2016 Base business Growth Initiatives Acquisitions Currency Q3 2017 © Bureau V
Slide 10: Business Review
Business Review © Bureau Veritas
Slide 11: Marine & Offshore
Marine & Offshore 8% of group revenue* KEY FINANCIALS Q3 2017 HIGHLIGHTS 2017 MARKET / BV OUTLOOK ▪ New Construction: sharp decline in ▪ Q4 trends similar to YTD 2017 with: Q3 2017 Q3 2016 Var. new-build activity led by new Equipment Certification ▪ New Construction: under pressure Revenue (6.7)% ▪
Slide 12: Agri-Food & Commodities
Agri-Food & Commodities 23% of group revenue KEY FINANCIALS Q3 2017 HIGHLIGHTS 2017 MARKET / BV OUTLOOK ▪ O&P (+3.3% organic): strong growth in Europe, Q3 2017 Q3 2016 Var. good in Asia while US impacted by the Hurricanes ▪ Environment to remain supportive Revenue 3.2% ▪ M&M (+6.8%): recovery led by
Slide 13: Industry
Industry 24% of group revenue KEY FINANCIALS Q3 2017 HIGHLIGHTS 2017 MARKET / BV OUTLOOK ▪ O&G Capex: -10% at Group level Q3 2017 Q3 2016 Var. ▪ O&G Opex: volume increase vs. persisting price pressure ▪ Slightly negative growth expected Revenue (7.8)% ▪ O&G Capex: NOC / Majors not 265.9 288.4 resumi
Slide 14: Building & Infrastructure
Building & Infrastructure 23% of group revenue KEY FINANCIALS Q3 2017 HIGHLIGHTS 2017 MARKET / BV OUTLOOK ▪ Building in-service (40% of divisional Q3 2017 Q3 2016 Var. revenue): Improving growth led by recent ▪ Opex: good trends in France/UK recruitment/contract wins (France/UK) ▪ Capex: Order book
Slide 15: Certification
Certification 8% of group revenue KEY FINANCIALS Q3 2017 HIGHLIGHTS 2017 MARKET / BV OUTLOOK Q3 2017 Q3 2016 Var. ▪ Good performance across all major service categories ▪ Robust growth forecasted Revenue (1.2)% Organic 79.5 80.4 5.2% ▪ By geography: strong growth in Asia, accelerating in Europe and
Slide 16: Consumer Products
Consumer Products 14% of group revenue KEY FINANCIALS Q3 2017 HIGHLIGHTS 2017 MARKET / BV OUTLOOK ▪ Robust organic growth across all regions Q3 2017 Q3 2016 Var. and nearly all categories ▪ Mid single digit growth expected Revenue 169.0 168.0 0.6% ▪ E&E best performer: Auto and Mobile Organic 3.7% t
Slide 17: Outlook
Outlook eS <| © Bureau Veritas
Slide 18: Confirmed 2017 Outlook
Confirmed 2017 Outlook ▪ Full-year organic revenue growth expected to be slightly positive, with acceleration in the second half confirmed ▪ Full-year adjusted operating margin at around 16% ▪ Full-year cash flow generation to improve from FY 2016 © Bureau Veritas Q3 2017 Revenue October 25, 2017 18
Slide 19: Save the date! Bureau Veritas Investor Days
Save the date ! Bureau Veritas Investor Days December 7 & 8 BV presentations and site visits December 7: Paris December 8: Rotterdam
Slide 20: Q&A
Q&A © Bureau Veritas
Slide 21: Appendix
Appendix cae: “iy BUREAU VERITAS © Bureau Veritas
Slide 22: Revenue by business – Q3 2017
Revenue by business – Q3 2017 Q3 2017 €m Total Organic Scope FX Marine & Offshore 85.8 (6.7)% (1.8)% 0.0% (4.9)% Agri-Food & 265.7 3.2% 3.1% 3.4% (3.3)% Commodities Industry 265.9 (7.8)% (0.7)% (2.6)% (4.5)% Building & 266.8 6.7% 4.0% 5.5% (2.8)% Infrastructure Certification 79.2 (1.2)% 5.2% 0.0% (6
Slide 23: Revenue by business - 9M 2017
Revenue by business - 9M 2017 9M 2017 €m Total Organic Scope FX Marine & Offshore 276.6 (6.5)% (5.7)% 0.8% (1.5)% Agri-Food & 806.6 1.6% 1.6% 6.9% 0.1% Commodities Industry 825.5 (1.7)% (0.9)% (0.8)% 0.0% Building & 814.3 8.0% 4.0% 4.7% (0.7)% Infrastructure Certification 268.2 6.0% 5.8% 0.1% 0.1% C
Slide 24: 9 Months 2017 revenue growth by business
9 Months 2017 revenue growth by business % @ constant revenue currency 8% Certification 5,8% 0,1% +5.9% 23% Building & Infrastructure 4,0% 4,7% +8.7% 14% Consumer Products 4,7% 1,9% +6.6% 23% Agri-Food & Commodities 1,6% 6,9% +8.5% 8% Marine & Offshore (5.7)% 0,8% (4.9)% 24% Industry (0.8)% (0.9)% (
Slide 25: 5 Growth Initiatives organic performances YTD
5 Growth Initiatives organic performances YTD B&I +4.7% * OPEX +6.5% * Agri-Food +5.3% * 9M 2017: +7.1% organic in line with H1 2017 Automotive +21.8% * © Bureau Veritas SmartWorld +14.4% * 0 200 400 * The above figures represent the 9M 2017 total revenue for every organic year-on-year performance g
Slide 26: Q3 2017 revenue by main currencies
Q3 2017 revenue by main currencies Q3 2017 REVENUE BY CURRENCY CURRENCY CHANGE Y/Y CNY -5.1% OTHER USD -5.0% 13% CAD -1.2% EUR 27% HKD -5.7% COP 1% AUD -1.1% ARS 1% INR 1% BRL -2.6% SGD 2% GBP -5.4% TWD 2% CLP -2.1% JPY 2% AED -5.0% AED 3% JPY -12.4% CLP 3% TWD -0.4% SGD -5.6% GBP 4% CNY 12% INR -1.
Slide 27: Ownership at September 30, 2017
Ownership at September 30, 2017 1,3% Treasury shares 40,1% Wendel 56,8% Managers and employees 1,8% Free float © Bureau Veritas Q3 2017 Revenue October 25, 2017 27
Slide 28: Acquisitions YTD 2017
Acquisitions YTD 2017 Agri-Food SmartWorld March Jan. €35m €9.5m Food testing & inspections E&E testing & certification YTD 2017: €100m or 2% of annualized Building & Infrastructure Building & Infrastructure revenue Feb. July €50m €4m Mandatory supervision of © Bureau Veritas Construction code compl
Slide 29: Glossary
Glossary NDT: Non Destructive Testing NOC: National Oil Companies Organic growth is the increase in revenue versus last year, at constant O&G: Oil & Gas currency and scope (i.e. acquisitions excluded) O&P: Oil & Petrochemicals Adjusted Operating Profit (AOP) excludes amortization of acquisition inta
Slide 30: Upcoming events
Upcoming events Investor Days - December 7 & 8, 2017 Annual results 2017- March 1, 2018 Dec 7: Paris Dec 8: Rotterdam Annual General meeting 2017- May 15, 2018 Investor Relations Information Bureau Veritas Head Office – 40 Boulevard du Parc 92200 Neuilly-sur-Seine Laurent Brunelle +33 (0)1 55 24 76