Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — Q1 2022 Earnings Presentation
40 slides from Bureau Veritas Sa's earnings presentation, Apr 21, 2022
Slide 1: Q1 2022 Revenue
Q1 2022 REVENUE APRIL 21, 2022
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
HIGHLIGHTS
Slide 5: Health & Safety, clients' service, and financial solidity at the core of our actions
Health & Safety, clients’ service, and financial solidity at the core of our actions Ensuring employee Health & Safety Ensuring business continuity with and for clients Protecting the financial solidity of the Group Q1 2022 REVENUE 5
Slide 6: Limited exposure from Russia / Ukraine: c.1% of group revenue
Limited exposure from Russia / Ukraine: c.1% of group revenue UKRAINE: 0.3% OF ANNUAL REVENUE ➢ People’s safety at the heart of crisis management ➢ Ceased operations as of February 24, 2022 ➢ Payment of salaries ensured RUSSIA: 0.8% OF ANNUAL REVENUE ➢ Decision to downsize its business in the sector
Slide 7: Q1 2022 highlights
Q1 2022 highlights ORGANIC REVENUE GROWTH OF 8.0% • Three businesses delivered strong organic growth: Industry 11.9%, Agri Food & Commodities 9.5%, and Buildings & Infrastructure 7.1% REVENUE • The rest of the portfolio saw mid-single-digit growth, with Marine & Offshore, up 6.5% organically, Consum
Slide 8: Bureau Veritas posting strong broad-based revenue growth in Q1 2022
Bureau Veritas posting strong broad-based revenue growth in Q1 2022 Q1 2022 PORTFOLIO SPLIT BY PERCENTAGE OF GROUP REVENUE KEY Q1 2022 HIGHLIGHTS Buildings & Infrastructure, Buildings & Infrastructure, Agri-Food & Agri-Food & Commodities Commodities • Buildings & Infrastructure benefited from strong
Slide 9: A significant portion of Group sales contributing to sustainability through the BV Green Line
A significant portion of Group sales contributing to sustainability through the BV Green Line BV CONTRIBUTING SIGNIFICANTLY TO SUSTAINABILITY (BV GREEN LINE REPRESENTING 58% OF SALES) IN PERCENTAGE OF GROUP SALES BREAKDOWN OF GROUP SALES (Q1 2022) BREAKDOWN OF BV GREEN LINE SALES BY TYPE OF SERVICES
Slide 10: Bureau Veritas' Green Line
BUREAU VERITAS’ GREEN LINE OF INDEPENDENT EXPERTISE TO FOSTER A SUSTAINABLE WORLD RESOURCES NEW & PRODUCTION MOBILITY BUILDINGS & SOCIAL, ETHICS RENEWABLES & CONSUMPTION INFRASTRUCTURE E-MOBILITY, & GOVERNANCE ALTERNATIVE ENERGIES & TRACEABILITY ALTERNATIVE CONSTRUCTION PROPULSION SOCIAL PRACTICES &
Slide 11: Bureau Veritas' integrated, five-step Achieving Net Zero solution in B&I
Bureau Veritas’ integrated, five-step Achieving Net Zero solution in B&I for its clients Q1 2022 REVENUE 11
Slide 12: Financial Review
FINANCIAL REVIEW
Slide 13: Q1 2022 total revenue growth of 11.7%
Q1 2022 total revenue growth of 11.7% REVENUE EVOLUTION VARIATION ANALYSIS +8.5% at constant currency +8.0% +0.5% +3.2% 1,290.1 1,154.7 Q1 2021 Organic 1 Scope Currency Q1 2022 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentation Q1
Slide 14: Q1 2022 revenue growth by business
Q1 2022 revenue growth by business % of @ constant revenue currency 30% Buildings & Infrastructure 7.1% 1.5% 8.6% 22% Agri-Food & Commodities (0.3)% 9.5% 9.2% 21% Industry 11.9% 0.2% 12.1% 12% Consumer Products 4.6% 0.3% 4.9% 8% Marine & Offshore 6.5% 6.5% 7% Certification 4.0% 0.4% 4.4% 100% Total
Slide 15: Business Review
BUSINESS REVIEW
Slide 16: Strong Q1 2022 organic revenue growth across the board (1/3)
Strong Q1 2022 organic revenue growth across the board (1/3) Marine & Offshore Agri-Food & Commodities organic organic growth growth • High single-digit growth in New Construction • O&P: mid-single-digit organic growth overall, a reflection of price increases and higher fuel consumption, with notabl
Slide 17: Strong Q1 2022 organic revenue growth across the board (2/3)
Strong Q1 2022 organic revenue growth across the board (2/3) Industry Buildings & Infrastructure organic organic growth growth • High single-digit growth for Power & Utilities – a key growth • Mostly driven by the Americas (both US and Latin America engine – fueled by strong wins in Latam; nuclear i
Slide 18: Strong Q1 2022 organic revenue growth across the board (3/3)
Strong Q1 2022 organic revenue growth across the board (3/3) Certification Consumer Products organic organic growth growth • Most geographies delivered organic growth. Americas, • Growth fueled across most product categories Africa and Middle East performed above the divisional • Very high growth in
Slide 19: Outlook
OUTLOOK
Slide 20: Confirmed 2022 Outlook
Option 2 Confirmed 2022 Outlook Based on a healthy sales pipeline and the significant growth opportunities related to Sustainability, and assuming there are no severe lockdowns in its main countries of operation due to Covid-19, for the full year 2022 Bureau Veritas still expects to: Generate Achiev
Slide 21: Strong start to the year with 8.0% organic revenue growth in Q1 2022
Strong start to the year with 8.0% organic revenue growth in Q1 2022 Health & Safety is an absolute at Bureau Veritas Q1 delivered strong organic revenue growth, a positive momentum to confirm 2022 outlook, in a volatile environment Bureau Veritas is well positioned to benefit from strong macro driv
Slide 22: Q&A
Te28, BUREAU VERITAS Q&A
Slide 23: 2022 Financial Calendar & Contacts
2022 Financial Calendar & Contacts 2022 AGENDA INVESTOR RELATIONS DEPARTMENT BUREAU VERITAS HEAD OFFICE – 40/52 BOULEVARD DU PARC Shareholders’ meeting: June 24, 2022 92200 NEUILLY-SUR-SEINE, FRANCE H1 2022 results: July 28, 2022 Laurent Brunelle Q3 2022 revenue: October 26, 2022 Head of Investor Re
Slide 24: Appendix
Te28 BUREAU VERITAS APPENDIX
Slide 25: Bureau Veritas vision is to become the CSR leader in the TIC industry
Bureau Veritas vision is to become the CSR leader in the TIC industry Owing to the nature of its services, BV has a two-fold impact on CSR issues WITHIN BV FOR CLIENTS thanks to its own thanks to its services & solutions CSR strategy supporting CSR commitment All SDGs are impacted with more or less
Slide 26: Bureau is committed and delivers upon its CSR performance
Bureau is committed and delivers upon its CSR performance Q1 FY 2025 2022 2021 target Total Accident Rate (TAR)1 0.21 0.27 0.26 By V.E and Proportion of women in leadership positions2 25.4% 26.5% 35% EURONEXT Number of training hours per employee 3.6 29.9 35.0 (per year)3 CO2 emissions per employee
Slide 27: Q1 2022 revenue by business
Q1 2022 revenue by business REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE Q1 2022 IN EUR MILLIONS €m Organic Scope Currency Marine & Offshore 101.4 +6.5% - +1.3% Marine & Offshore 12% 8% Agri-Food & Commodities Agri-Food & Commodities 280.7 +9.5% (0.3)% +3.4% 7% 22% Industry Industry
Slide 28: Marine & Offshore (8% of revenue)
Marine & Offshore (8% of revenue) KEY FINANCIALS Q1 2022 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q1 2022 Q1 2021 Change • New Construction: High single-digit organic growth notably led by China High single-digit growth Revenue 101.4 94.1 +7.8% in New Construction Organic +6.5% • Core In-Service: Low
Slide 29: Agri-Food & Commodities (22% of revenue)
Agri-Food & Commodities (22% of revenue) KEY FINANCIALS Q1 2022 HIGHLIGHTS KEY FIGURES • O&P: Mid-single-digit organic growth; IN EUR MILLIONS Q1 2022 Q1 2021 Change Improvement in O&P Trade market due to prices increases and higher fuel consumption. Revenue Organic 280.7 249.2 +12.6% +9.5% Strong g
Slide 30: Industry (21% of revenue)
Industry (21% of revenue) KEY FINANCIALS Q1 2022 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q1 2022 Q1 2021 Change • Oil & Gas: the activity strongly improved, with double digit organic growth across most Revenue 269.5 232.5 +15.9% geographies Opex Oil & Gas Organic +11.9% business Scope +0.2% • Double
Slide 31: Buildings & Infrastructure (30% of revenue)
Buildings & Infrastructure (30% of revenue) KEY FINANCIALS Q1 2022 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q1 2022 Q1 2021 Change Building In-Service (48% of divisional revenue): low single-digit organic growth USA Revenue 388.2 347.2 +11.8% Organic +7.1% • Led by US (strong commercial development in
Slide 32: Certification (7% of revenue)
Certification (7% of revenue) KEY FINANCIALS Q1 2022 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q1 2022 Q1 2021 Change • Solid organic growth of 4.0% in the quarter following the catch-up in Q1 2021. Supported Revenue Organic 97.3 91.9 +5.9% +4.0% by strong sales development, notably as Sustainability &
Slide 33: Consumer Products (12% of revenue)
Consumer Products (12% of revenue) KEY FINANCIALS Q1 2022 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q1 2022 Q1 2021 Change • Solid organic growth in Q1 2022 across most products categories Revenue 153.0 139.8 +9.4% Southern Asia Organic +4.6% • Softlines: performed better the divisional mainly Softline
Slide 34: Q1 2022 revenue evolution by geography
Q1 2022 revenue evolution by geography REVENUE BY GEOGRAPHIC AREA REVENUE EVOLUTION BY NATURE Organic growth Scope Asia Americas Pacific 26% 29% Q1 2022 Africa, Middle East 9% Europe 36% +17.1% +3.9% +13.9% +4.5% Americas Europe Africa, Asia Pacific Middle-East Q1 2022 REVENUE 34
Slide 35: Currency mix in Q1 2022
Currency mix in Q1 2022 REVENUE CURRENCY EXPOSURE CURRENCY CHANGE (YEAR ON YEAR) OTHER 10.9% USD (and pegged) +6,5% CNY +8,8% AUD +0,7% RUB 0,6% EUR 30,0% GBP +4,3% VND 0,8% CAD +6,9% PEN 1,0% XOF 1,1% CLP (3,9)% COP 1,2% BRL KRW 1,2% JPY (2,1)% SGD 1,3% TWD 1,5% Q1 2022 INR +3,9% INR 1,9% TWD +7,1%
Slide 36: Well diversified sources of financing with a balanced maturity profile
Well diversified sources of financing with a balanced maturity profile DEBT MATURITY PROFILE AS OF DEC. 31, 2021 DEBT BREAKDOWN Bond 3% 1% 0,5% USPP 177 China Loan 27% Bond Other USPP Fixed rate China Loan Floating rate Other 69% 500 500 500 99,5% 32 200 177 177 137 76 3% 2022 2023 2024 2025 2026 20
Slide 37: Definition of alternative performance indicators and reconciliation with IFRS (1/2)
Definition of alternative performance indicators and reconciliation with IFRS (1/2) INTRODUCTION ORGANIC GROWTH (1/2) The management process used by the Bureau Veritas Group is based on a The Group internally monitors and publishes “organic” revenue growth, which series of alternative performance in
Slide 38: Definition of alternative performance indicators and reconciliation with IFRS (2/2)
Definition of alternative performance indicators and reconciliation with IFRS (2/2) ORGANIC GROWTH (2/2) SCOPE EFFECT Organic revenue growth represents the percentage of revenue growth, To establish a meaningful comparison between reporting periods, the impact presented at Group level and for each b
Slide 39: 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 40: Bureau Veritas - Shaping a World of Trust
BUREAU LVERITAS | VERITAS Shaping a World of Trust