Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — Q3 2019 Earnings Presentation
35 slides from Bureau Veritas Sa's earnings presentation, Oct 24, 2019
Slide 1: Q3 2019 Revenue
Q3 2019 REVENUE OCTOBER 24, 2019
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: Agenda
Agenda HIGHLIGHTS FINANCIAL REVIEW BUSINESS REVIEW OUTLOOK Q&A APPENDIX
Slide 4: Highlights
J BUREAU VERITAS HIGHLIGHTS
Slide 5: Bureau Veritas has developed its resilience around strategic cornerstones
Bureau Veritas has developed its resilience around strategic cornerstones STRONG FRANCHISE HIGH DIVERSIFICATION ROBUST PORTFOLIO • Recognized as a Tier 1 player • Balanced geographical footprint • Balanced portfolio of services • Extensive global presence with across three main regions: generating s
Slide 6: Resiliency is at the core of Bureau Veritas' operations
Resiliency is at the core of Bureau Veritas’ operations STRONG RESILIENCE ACHIEVED THROUGH THE 2015-2020 STRATEGIC PLAN BUILDINGS & INFRASTRUCTURE INDUSTRY MARINE & OFFSHORE In-Service (Opex) Opex In-Service (Opex) Construction (Capex) Capex New Construction (Capex) 41% 40% 45% 55% 59% 60% • In-Serv
Slide 7: Q3 2019 highlights
Q3 2019 highlights ORGANIC REVENUE GROWTH OF +3.9% • 5 out of 6 businesses growing at 4.6% on average, including Agri-Food & Commodities at +4.4%, Buildings & Infrastructure at +4.0% and Consumer Products at +2.0% REVENUE €1.27bn • M&O up 6.5% and Industry up 6.8% confirm their recovery +6.2% o/w +4
Slide 8: Financial Review
FINANCIAL REVIEW
Slide 9: 9M 2019 revenue growth
9M 2019 revenue growth REVENUE EVOLUTION +5.1% at constant currency1 +4.0% +1.1% +0.9% 3,747.3 3,535.0 9M 2018 Organic 1 Scope Currency 9M 2019 (1) Organic revenue growth represents the percentage of revenue growth (presented at Group level and for each activity) based on a constant scope of consoli
Slide 10: Q3 2019 revenue growth
Q3 2019 revenue growth REVENUE EVOLUTION +4.7% at constant currency1 +3.9% +0.8% +1.5% 1,270.7 1,196.7 Q3 2018 Organic 1 Scope Currency Q3 2019 (1) Organic revenue growth represents the percentage of revenue growth (presented at Group level and for each activity) based on a constant scope of consoli
Slide 11: Q3 2019 revenue growth by business
Q3 2019 revenue growth by business % of @ constant revenue currency 22% Industry (0.4)% 6.8% +6.4% 27% Buildings & Infrastructure 4.0% 2.3% +6.3% 7% Marine & Offshore (0.3)% 6.5% +6.2% 23% Agri-Food & Commodities 4.4% 1.4% +5.8% 14% Consumer Products 2.0% +2.0% 7% Certification (4.8)% 0.3% (4.5)% 10
Slide 12: 9M 2019 acquisitions adding €46m of revenue
9M 2019 acquisitions adding €46m of revenue1 BUILDINGS & INFRASTRUCTURE AGRI-FOOD DISPOSAL ASIA, JANUARY HSE CONSULTING BUSINESS €4m (additional revenue) IN NORTH AMERICA FRANCE, JANUARY Food testing joint venture created with AsureQuality in €23m Singapore providing services to South East Asian mar
Slide 13: Business Review
BUSINESS REVIEW
Slide 14: Marine & Offshore (7% of revenue)
Marine & Offshore (7% of revenue) KEY FINANCIALS Q3 2019 HIGHLIGHTS KEY FIGURES • New Construction: double-digit growth, driven by IN EUR MILLIONS Q3 2019 Q3 2018 Var. New orders Order book In-Service fleet new equipment certification services, notably in Revenue 91.4 84.8 +7.8% North East Asia (Chi
Slide 15: Agri-Food & Commodities (23% of revenue)
Agri-Food & Commodities (23% of revenue) KEY FINANCIALS Q3 2019 HIGHLIGHTS 2020 STRATEGIC INITIATIVES • O&P (-0.6%): low to mid-single-digit growth in Europe & Asia (new services) while negative in the Americas IN EUR MILLIONS Q3 2019 Q3 2018 Var. (price pressure in traditional cargo inspection) Agr
Slide 16: Industry (22% of revenue)
Industry (22% of revenue) KEY FINANCIALS Q3 2019 HIGHLIGHTS 2020 STRATEGIC INITIATIVES • Recovery confirmed fueled by business IN EUR MILLIONS Q3 2019 Q3 2018 Var. diversification (towards P&U and Opex) and Revenue 281.4 263.8 +6.7% improved trends for Capex-related works Organic +6.8% • Oil & Gas C
Slide 17: Buildings & Infrastructure (27% of revenue)
Buildings & Infrastructure (27% of revenue) KEY FINANCIALS Q3 2019 HIGHLIGHTS 2020 STRATEGIC INITIATIVES Construction-related activities (47% of IN EUR MILLIONS Q3 2019 Q3 2018 Var. divisional revenue) mid-single-digit growth China* Revenue 337.5 313.3 +7.7% • Particularly strong in Asia Pacific, dr
Slide 18: Certification (7% of revenue)
Certification (7% of revenue) KEY FINANCIALS Q3 2019 HIGHLIGHTS 2020 STRATEGIC INITIATIVES • Negative organic revenue growth as expected, IN EUR MILLIONS Q3 2019 Q3 2018 Var. due to the year-on-year comparison with the exceptionally high level of activity in 2018 Revenue 85.5 88.4 (3.3)% on QHSE and
Slide 19: Consumer Products (14% of revenue)
Consumer Products (14% of revenue) KEY FINANCIALS Q3 2019 HIGHLIGHTS 2020 STRATEGIC INITIATIVES • E&E: low single-digit growth fueled by Mobile IN EUR MILLIONS Q3 2019 Q3 2018 Var. testing; challenging comps in Automotive SmartWorld Revenue 181.6 173.4 +4.7% • Hardlines: growth below divisional aver
Slide 20: Outlook
OUTLOOK
Slide 21: 2019 Outlook Confirmed
2019 Outlook Confirmed Solid organic Continued adjusted Sustained strong revenue growth operating margin cash flow improvement at generation constant currency Q3 2019 REVENUE 21
Slide 22: Conclusion
Conclusion A transformed growth and resilience profile Sustained solid organic revenue growth in Q3 2019 confirmed outlook Q3 2019 REVENUE 22
Slide 23: Q&A
Q&A
Slide 24: 2019/2020 Financial Calendar & Contacts
2019/2020 Financial Calendar & Contacts 2019/2020 AGENDA • Credit Suisse, European Business Services INVESTOR RELATIONS DEPARTMENT Conference, New York City – December 3-4, 2019 BUREAU VERITAS HEAD OFFICE – 40/52 BOULEVARD DU PARC • Jefferies, Business Services Conference, 92200 NEUILLY-SUR-SEINE, F
Slide 25: Appendix
Te28 BUREAU VERITAS APPENDIX
Slide 26: 9M 2019 revenue growth by business
9M 2019 revenue growth by business % of @ constant revenue currency 23% Agri-Food & Commodities 6.7% 1.2% +7.9% 27% Buildings & Infrastructure 3.4% 3.4% +6.8% 7% Marine & Offshore 5.8% 0.2% +6.0% 22% Industry (0.2)% 5.4% +5.2% 14% Consumer Products 2.1% +2.1% 7% Certification (4.3)% 0.1% (4.2)% 100%
Slide 27: 9M 2019 revenue by business
9M 2019 revenue by business REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE 9M 2019 IN EUR MILLIONS €m Organic Scope Currency Marine & Offshore 272.3 +5.8% +0.2% +0.7% Marine & Offshore 14% 7% Agri-Food & Commodities Agri-Food & Commodities 867.6 +6.7% +1.2% +0.9% 7% 23% Industry Indust
Slide 28: Q3 2019 revenue by business
Q3 2019 revenue by business REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE Q3 2019 IN EUR MILLIONS €m Organic Scope Currency Marine & Offshore 91.4 +6.5% (0.3)% +1.6% Marine & Offshore 14% 7% Agri-Food & Commodities Agri-Food & Commodities 293.3 +4.4% +1.4% +1.6% 7% 23% Industry Indust
Slide 29: Base Business & Growth Initiatives driving revenue growth
Base Business & Growth Initiatives driving revenue growth ORGANIC REVENUE GROWTH BY NATURE BREAKDOWN OF 9M REVENUE BY NATURE YEAR-ON-YEAR CHANGE, IN PERCENTAGE Q3 2019 9M 2019 Opex Services +0.1% +5.0% Growth Initiatives Buildings & Infrastructure +4.3% +4.6% Base Business Agri-Food +8.5% +8.4% 37%
Slide 30: Revenue is growing in all geographies
Revenue is growing in all geographies Q3 REVENUE BY GEOGRAPHIC AREA Q3 REVENUE GROWTH BY NATURE Organic growth Scope impact 5.9% 5.8% Americas 3.1% 0.8% Asia 26% Pacific 3.4% 32% 2.5% 4.8% 5.0% 2.5% 2.8% Africa, Middle East (0.3)% Europe (1.7)% 9% 33% Americas Europe Africa, Asia Pacific Middle-East
Slide 31: Forex impact in 9M 2019
Forex impact in 9M 2019 REVENUE CURRENCY EXPOSURE CURRENCY CHANGE Y/Y OTHER 11.6% USD (and pegged) +6.3% PEN 0.9% RUB 1.0% CNY +0.8% XOF 1.0% EUR 27.4% CAD +2.9% COP 1.3% GBP +0.1% KRW 1.4% TWD 1.4% AUD (2.0)% SGD 1.6% BRL (1.6)% INR 1.7% CLP (2.6)% JPY 2.1% JPY +6.8% CLP 2.5% 9M 2019 INR +1.7% SGD
Slide 32: Ownership at September 30, 2019
Ownership at September 30, 2019 STABLE SHAREHOLDING STRUCTURE 1.1% 35.6% Wendel Managers & Employees 62.0% Free Float Treasury shares 1.3% Q3 2019 REVENUE 32
Slide 33: Revenue Growth Definition
REVENUE GROWTH DEFINITION TOTAL REVENUE GROWTH SCOPE IMPACT The percentage of total revenue growth is a ratio measuring the In order to show a like-with-like comparison, the impact of changes in revenue variation of the Group as at end of Year N compared to Year the scope of consolidation is determi
Slide 34: 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 35: BUREAU
BUREAU PVERITAS | VERITAS