Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — Investor Day (December 2017)
188 slides from Bureau Veritas Sa's investor day presentation, Dec 7, 2017
Slide 1: Bureau Veritas Investor Days
Bureau Veritas Investor Days Plenary session December 7, 2017 © Bureau Veritas
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
Strategy CEO overview Agenda BV 2020 Financial Roadmap Executing the strategy 5 Growth Initiatives Opex Agri-Food SmartWorld Automotive Building & Infrastructure 2 Priority Countries North America China Digital@BV Digital transformation B&I France Grand Paris
Slide 4: Strategy
Strategy
Slide 5: CEO Overview
CEO Overview
Slide 6: Accelerating the Transformation of Bureau Veritas
WELCOME TO BUREAU VERITAS’ INVESTOR DAYS 2017 « ACCELERATING THE TRANSFORMATION OF BUREAU VERITAS » DIDIER MICHAUD-DANIEL CEO
Slide 7: Focus on Clients, Driven by Society
FOCUS ON CLIENTS, DRIVEN BY SOCIETY 1828 & BEYOND INDUSTRIAL REVOLUTION RULES 1980’ 2018 GLOBALIZATION SOCIETAL & STANDARDIZATION AWARENESS COMPLIANCE SOCIETY BENEFIT 2010’ TRANSPARENCY (VS SCANDALS) TRUST
Slide 8: Profound changes in mega trends
Profound changes in mega trends … …Impacting our ecosystem
Slide 9: Social Values & Society
SOCIAL VALUES & SOCIETY PROFOUND ASPIRATION
Slide 10: Diversify
DIVERSIFY 2015 20171 1% 2% 2% SmartWorld 2% SmartWorld Automotive 4% Automotive 6% Agri-Food Agri-Food 11% 28% 72% 11% 33% 67% from Growth Opex from Growth Base REVENUE Opex Initiatives Base Initiatives Business Business 10% BUSINESS MIX 12% Building Building & Infrastructure & Infrastructure 12% 11
Slide 11: Aging Infrastructure in Western Countries, Booming in Asia
AGING INFRA … & BOOMING IN WESTERN URBANISATION COUNTRIES… IN ASIA… REQUIRING MASSIVE INVESTMENT
Slide 12: France, China, Latin America; Next Step North America
FRANCE, CHINA, LATIN AMERICA LEADING POSITION NEXT STEP: NORTH AMERICA PLATFORM
Slide 13: Power & Going Greener
POWER MANAGING EXISTING CAPABILITIES & GOING GREENER
Slide 14: Opex
OPEX Ensure business continuity
Slide 15: Food Demand Increasing
FOOD DEMAND INCREASING TRACEABILITY CONCERN AROUND FOOD & AGRI
Slide 16: Agri-Food
AGRI-FOOD IN 2 YEARS INTERNATIONAL POSITION
Slide 17: Connectivity & Shift in the Automotive Value Chain
CONNECTIVITY & SHIFT IN THE AUTOMOTIVE VALUE CHAIN
Slide 18: Digital Revolution
DIGITAL REVOLUTION Industry 4.0 Artificial Intelligence Blockchain Internet of Things
Slide 19: GDP Growth Projections for Large Economies
U.K. CANADA 1.0 1.2 CHINA RUSSIA 2.3 2.2 EUROZONE 2.1 1.8 GDP U.S. 2.0 1.7 6.5 6.2 growth 2.4 2.2 JAPAN INDIA* 1.1 0.7 projections World for large 7.4 7.6 BRAZIL 3.2 3.1 economies 2.2 3.3 Year-over-year change 2018 2019 Source: IHS Markit
Slide 20: Change in Global Fortune 500 Picture
U.S. U.K. NETHERLANDS CHINA Change JAPAN in Global Fortune 500 picture Ranking by turnover 2011 2016
Slide 21: China: #1 Country
CHINA #1 COUNTRY
Slide 22: United States: Portfolio Diversification
UNITED STATES PORTFOLIO DIVERSIFICATION
Slide 23: Agile Disruption
AGILE DISRUPTION
Slide 24: Meeting our clients' challenges
Meeting our clients’ challenges
Slide 25: Grow
GROW LEADING ROLE IN THE MARKET CONSOLIDATION 5% to 7% ORGANIC GROWTH BY 2020
Slide 26: Main Focus
MAIN FOCUS MARGIN IMPROVEMENT CASH GENERATION
Slide 27: BV's Global Ambition for 2020
BV’S GLOBAL AMBITION FOR 2020 AN ADJUSTED OPERATING MARGIN TARGET ABOVE 17% IN 2020 INCREASED GROUP REVENUE BY c€1.5BN IN 2020 CONFIRMED RETURN VS. 2015 TO A 5-7% ORGANIC REVENUE GROWTH BY 2020 CONTINUOUS HIGH FREE CASH FLOW GENERATION
Slide 28: Bureau Veritas People
PEOPLE BUREAU VERITAS GREATEST ASSET
Slide 29: Accelerating the Transformation of Bureau Veritas
WELCOME TO BUREAU VERITAS’ INVESTOR DAYS 2017 « ACCELERATING THE TRANSFORMATION OF BUREAU VERITAS » DIDIER MICHAUD-DANIEL CEO
Slide 30: BV 2020 Financial Roadmap
BV 2020 Financial Roadmap
Slide 31: Improving trends YTD 2017
Improving trends YTD 2017 ► Nine months organic revenue +1.6% – trending higher in Q3 ♦ Strong organic growth momentum of Growth Initiatives +7.1% y/y ♦ External growth +2.7% with 9 acquisitions YTD supporting Building & Infrastructure / Agri-Food / SmartWorld / Automotive Initiatives ♦ Currency imp
Slide 32: Confirmed 2017 outlook
Confirmed 2017 outlook Full-year organic Full-year Full-year cash revenue growth adjusted flow generation expected to be operating margin to improve slightly positive, of around 16% from FY 2016 with acceleration in the second half confirmed Investor Days December 7 & 8, 2017 33
Slide 33: Reaffirmed 2020 ambition
Reaffirmed 2020 ambition Add €1.5bn Above Continuous of incremental 17% high revenue1 adjusted Free Cash Flow Half organic operating margin generation Half acquisition led 5-7% organic growth by 2020 (1) At initial plan exchange rates (as presented during October 2015 Investor Days) Investor Days De
Slide 34: Growth: two engines
Growth: two engines BV ambition for the two growth engines ► Focused organic growth ♦ Initiative driven ♦ Resilience enhanced, less cyclicality 5-7% organic revenue growth ♦ Balanced portfolio by 2020 ► Targeted acquisitions ♦ All supporting our 5 Growth Initiatives and priority countries (USA and C
Slide 35: Growth: BV 2020 Revenue Ambition
Growth: BV 2020 Revenue Ambition (in € millions) c.400-5001 M&A Organic c.600-700 1,5003 c.1501 c.852 -0,6%1 130 -29 Acceleration towards 5-7% organic growth by 2020 Ramp-up with 4,635 cyclical headwinds 2015 2016 2017e 2020e (1) Estimated annualized revenue from acquisitions of the year(s) (3) At i
Slide 36: Growth: Combine Base Business & Growth Initiatives potential
Growth: Combine Base Business & Growth Initiatives potential Stabilizing Base Business Perspective 1% 0.0% 0% -1.1% ► Returning to TIC market growth -1% Two-thirds -2.2% (c.3%) -2% ♦ Stabilizing Oil & Gas Capex markets -3% -3.7% ♦ Recovering Metals & Minerals markets -4% ♦ Upcoming stabilized Shippi
Slide 37: Profit: towards >17% adjusted operating margin in 2020
Profit: towards >17% adjusted operating margin in 2020 + - + Excellence @BV Restructuring payback Digital >17% Shared Lean Procurement service center c16% 2017e Operating Leverage Margin Initiatives Competitive / Price 2020 BV ambition Pressure & Cost Inflation Investor Days December 7 & 8, 2017 38
Slide 38: High Free Cash Flow generation
High Free Cash Flow generation Stabilising Base Business ► TIC activities have a favorable cash model… ♦ High profitability ♦ Low capex requirements, even more for BV High Free Cash Flow generation (more inspection than testing) ♦ High cash conversion rate over the cycle Low capex1 3.0-3.5% ► New Ch
Slide 39: Move For Cash
Move For Cash Reducing working capital ► A Group-wide working capital reduction to improve cash flow generation program ♦ All locations and all operations covered Revenue with a tailored approach EBITDA ♦ Dedicated KPIs and incentives Operating ♦ Adapted tools and reporting profit Free ► Catalyze re
Slide 40: Cash: self-financed plan
Cash: self-financed plan Financing bridge over 2016-2020 (€m) ► BV 2020 plan fully financed with: ♦ Unchanged solid investment grade credit profile Capex ♦ Net Debt/EBITDA ratio well below 3.25x covenants ♦ Maintained dividend distribution policy Operating Cash Flow M&A Dividend Debt Source of cash
Slide 41: Inflexion point crossed
Inflexion point crossed Group quarterly organic revenue growth ► Q3 2017 organic growth at +2.2%, the best quarter since Q2 2015 5.5% 5.5% Organic Growth 1-year Moving average 4.4% ♦ 4 out of 6 businesses posting organic growth 4.5% 4.5% above +3% in Q3 2017 c100% 3.5% 3.5% ♦ 2 businesses still decl
Slide 42: Executing the Strategy
Executing the Strategy
Slide 43: BV 2020 Strategic Plan highlights
BV 2020 Strategic Plan highlights 5 Growth Initiatives ► Enhanced offering ► Portfolio expansion Expanded market Large companies’ coverage partner of choice 2 Countries ► USA ► China Excellence Balanced @BV global footprint 4 Levers ► Human Resources Leading role in consolidation ► Excellence @ BV ►
Slide 44: Growth Initiatives: gaining momentum
5 Growth Initiatives: gaining momentum Growth Initiative 2020 Ambition1 9M 2017 Revenue Performance Building & €350 – 400m +4.7%2 Infrastructure Opex €300 – 350m +6.5%2 Oil & Gas, Power, Chem. Agri-Food €250 – 300m +5.3%2 Automotive €130 – 150m +21.8%2 SmartWorld €110 – 150m +14.4%2 €m 200 400 (1) I
Slide 45: Level of Readiness
Strategic Growth Initiatives Contribution to 2020 objectives (€ million) High Level of Readiness Opex Automotive Agri-Food Building & Medium Infrastructure SmartWorld Low 100 150 200 250 300 350 400 450 Size of bubbles = TIC market size Investor Days December 7 & 8, 2017 46
Slide 46: Executive alignment on Growth strategy
Executive alignment on Growth strategy Strict Control over Revenue Mix Market Focused and Growth by Operating Unit Global Support Organization Market Leaders 9 Global 71 Regional Investor Days December 7 & 8, 2017 47
Slide 47: Completely renewed footprint in B&I
Completely renewed footprint in B&I €0 to 10m €10 to 30m €30 to 50m Above €50m Acquisitions Organic Investor Days December 7 & 8, 2017 48
Slide 48: Expanded Agri-Food Lab network
Expanded Agri-Food Lab network Existing Acquisitions Organic Investor Days December 7 & 8, 2017 49
Slide 49: Latin America is already a success story
Latin America is already a success story 2015 2017 Chem Chem Auto OPEX Auto OPEX F&A F&A B&I Core Core Business Business P&U OPEX B&I O&G OPEX P&U OPEX O&G OPEX Portfolio Diversification Market Orientation Organization Alignment Investor Days December 7 & 8, 2017 50
Slide 50: M&A is key to the achievement of the 2020 plan
M&A is key to the achievement of the 2020 plan ► Efficient M&A process ♦ M&A Committee Strategic initiative Strategic Committee BV Board ♦ >50 companies reviewed by the M&A committee in 2017 ♦ 9 acquisitions YTD in 2017 Investor Days December 7 & 8, 2017 51
Slide 51: M&A is focused on Strategic Growth Initiatives
M&A is focused on Strategic Growth Initiatives Building OPEX Automotive & Infrastructure O&G/Power/Chem. ► 2016 - 2017 ♦ 17 acquisitions 1 Acquisition 2 Acquisitions supporting our c€10m c€10m Growth Initiatives Agri-Food SmartWorld (*) ♦ Cumulated revenue for Growth Initiatives: €260m (**) 1 7 Acqu
Slide 52: HR: A new Governance
HR: A new Governance… Executive Committee Executive Leadership Team ► Leaner ExCom with 9 members ► 25 Top Executives ► Compensation aligned on strategic priorities ► Tasked on strategic / transformational issues Investor Days December 7 & 8, 2017 53
Slide 53: HR: Reinforced processes
HR: Reinforced processes Develop Leadership … … in a 74,000 people company Europe Americas & MEA Asia Pacific ► Leadership Assessment ► Balanced geographical spread ► Succession Planning ► Strong focus on diversity Investor Days December 7 & 8, 2017 54
Slide 54: Building on a good Lean momentum
Building on a good Lean momentum Rolling out the Corporate program … … into various Operating Models Generalize Measure Design Inspection Review LEAN Implement & Check OPERATING Gap Analysis Project SYSTEM Labs Management Admin Support Solution Elaboration Using Lean Tools ► >800 scorecards deployed
Slide 55: Focus on key accounts
Focus on key accounts Key Account Distribution Major Clients Other Construction Auto Chemicals Food O&G M&M Power Retail ► ~150 Key Accounts ► >30% of BV Revenue ► Sector diversification Investor Days December 7 & 8, 2017 56
Slide 56: Sales Management requires a sustained effort
Sales Management requires a sustained effort Sales Management Sales Training Paris, March 2017 Houston, June 2017 Sao Paolo, August 2017 ► Sales costs 4.4% of revenue ► 1,750 Sales FTE’s Shanghai, September 2017 Investor Days December 7 & 8, 2017 57
Slide 57: Client expectations on Digital in TIC Market
Client expectations on Digital in TIC Market Be compliant on new norms Get cost-efficient offers for digital products & models for core services A new market for Digitally enhanced operating Bureau Veritas models DIGITAL NEEDS Get technology-enabled Experience a seamless TIC services “one-stop-shop”
Slide 58: Digital@BV focuses on 3 business priorities
Digital@BV focuses on 3 business priorities DIGITAL NEW DIGITAL NEW TIC DIGITAL EFFICIENCY OPERATING MODELS SERVICES Conformity 4.0 One-stop- shop Boost Profitability Accelerate Growth Diversify in of existing TIC Services with alternative models new market segments Investor Days December 7 & 8, 201
Slide 59: 5 Growth Initiatives
5 Growth Initiatives
Slide 60: Our 5 Growth Initiatives
Our 5 Growth Initiatives Growth Opex Building & Agri-Food SmartWorld Automotive Infrastructure Initiative Oil & Gas, Power, Chem. Build recurring Expand in a large Leverage Capitalize on key Leverage leading business models market driven our #1 position, expertise in supply global position Descripti
Slide 61: Opex
Opex Oil & Gas, Power, Chemicals Opex Oil & Gas, Power, Chem. Build recurring business models in fragmented markets, offering strong outsourcing opportunities €300 – 350m
Slide 62: Growth Initiatives: Opex (Oil & Gas, Power, Chemicals)
Growth Initiatives: Opex (Oil & Gas, Power, Chemicals) Key Market Drivers Revenue ambition over 2016-2020e (€m) 841 ► License to Operate 791 529 593 491 ► Risk Prevention ► Performance Improvement ► Brand Protection 2015 2016 2017F 2018E 2019E 2020E @ original plan rate 2017 Sep YTD Incremental Reve
Slide 63: A Huge Potential
A Huge Potential € 23 bn market partially addressed Investor Days December 7 & 8, 2017 64
Slide 64: Execution Getting Traction
Execution Getting Traction Marketing Digital & Delivery Outsourcing Sales Models Investor Days December 7 & 8, 2017 65
Slide 65: Opex Digital Solutions
Opex Digital Solutions Investor Days December 7 & 8, 2017 66
Slide 66: Selected Business Cases
Encouraging Results SELECTED BUSINESS CASES Investor Days December 7 & 8, 2017 67
Slide 67: Oil & Gas Assets Integrity Management
Oil & Gas Assets Integrity Management ► Client: Exxon Mobil Asia Pacific Hub in Singapore is the world biggest integrated Refining and Petrochemical complex ► Scope of services: Asset Integrity Management, including site / drone inspections and conventional / advanced Non Destructive Testing Investo
Slide 68: Power Distribution Field Services
Power Distribution Field Services ► Client: CPFL (owned by State Grid) is the leading power distribution Brazilian company serving more than 9 million customers ► Scope of services: Quality Control, Metering, Loss Prevention and Emergency Services Investor Days December 7 & 8, 2017 69
Slide 69: Chemical Assets Integrity Management
Chemical Assets Integrity Management ► Client: Antwerp is BASF 2nd largest “Verbund Site”, with 50 production plants and 580 km of pipelines, included in a 6 km² area ► Scope of services: Piping Inspections / Testing, Quality Control and Risk Based Inspections Investor Days December 7 & 8, 2017 70
Slide 70: Competitive Advantages & Benefits
Competitive Advantages & Benefits GROWTH acceleration Portfolio RESILIENCE KEY ACCOUNT development EXTENDED TIC offer Investor Days December 7 & 8, 2017 71
Slide 71: Our 5 Growth Initiatives
Our 5 Growth Initiatives Growth Opex Building & Agri-Food SmartWorld Automotive Infrastructure Initiative Oil & Gas, Power, Chem. Build recurring Expand in a large Leverage Capitalize on key Leverage leading business models market driven our #1 position, expertise in supply global position Descripti
Slide 72: Agri-Food
Agri-Food Agri-Food Expand in a large market driven by supply chain globalization, be recognized as a reference player €250 – 300m
Slide 73: Growth Initiatives: Agri-Food
Growth Initiatives: Agri-Food Key Market Drivers Revenue ambition over 2016-2020e (€m) ► World population rising 487 437 ► Globalization of Food Supply 289 233 ► Consumer awareness driving regulations 187 ► Food TIC outsourcing trend 2015 2016 2017F 2018E 2019E 2020E @ original plan rate 2017 Sep YT
Slide 74: Across The Board Presence
Across The Board Presence SOCIAL FOOD SAFETY RESPONSIBLE AUDIT INSPECTIONS SOURCING CALIBRATION TESTING FOOD MANUFACTURING PRODUCT INTEGRITY DIGITAL CERTIFICATION GMO AUTHENTICITY TESTING TOOLS TESTING AGRI/FOOD PRODUCTS SEED & SOIL RESIDUE NUTRITIONAL SUPPLY CHAIN RISK MICROBIOLOGY INSPECTION TESTI
Slide 75: New Lab Openings Driving Organic Growth
New Lab Openings Driving Organic Growth 2016 agri & food labs footprint < €1m Revenues < €10m Revenues > €10m Revenues Investor Days December 7 & 8, 2017 76
Slide 76: New Lab Openings Driving Organic Growth
New Lab Openings Driving Organic Growth Lab expansion since 2016 12 new food labs Greenfield < €1m Revenues < €10m Revenues > €10m Revenues Investor Days December 7 & 8, 2017 77
Slide 77: Agri-Food Selected Business Cases
Agri-Food SELECTED BUSINESS CASES Investor Days December 7 & 8, 2017 78
Slide 78: BV helps them to protect their brand image
BV helps them to protect their brand image Laboratory Testing Tuna Responsible Fishing Fast-food auditing and testing Canada Pacific Ocean Europe Laboratory Testing Soy Harvest Inspection Laboratory Testing International Brazil Russia Investor Days December 7 & 8, 2017 79
Slide 79: Agri-Food Digital Solutions
Agri-Food Digital Solutions Drone Field Control Safe Supply Safe Ops Origin 3.1 SUPPLIER GLOBAL RISK INDEX ► Crop Monitoring ► Supply chain ► In-store app solution ► Consumer-facing risk management Traceability Partners Investor Days December 7 & 8, 2017 80
Slide 80: Agri-Food Growth Initiative
Agri-Food Growth Initiative Bureau Veritas Differentiation ► Leading Regional Testing platforms ► Boots on the ground with leading audit capabilities ► Engaged with all value chain – from Agri to Food ► Innovative approach packaging digital solutions Investor Days December 7 & 8, 2017 81
Slide 81: Our 5 Growth Initiatives
Our 5 Growth Initiatives Growth Opex Building & Agri-Food SmartWorld Automotive Infrastructure Initiative Oil & Gas, Power, Chem. Build recurring Expand in a large Leverage Capitalize on key Leverage leading business models market driven our #1 position, expertise in supply global position Descripti
Slide 82: SmartWorld
SmartWorld SmartWorld Leverage our #1 position, and address new needs arising from connectivity €110 – 150m
Slide 83: Growth Initiative: SmartWorld
Growth Initiative: SmartWorld1 Key facts Revenue ambition over 2016-2020e (€m) ► Fast: rapid adoption of wireless connectivity 211 ► Complex: many competing technologies. 171 New requirements around connectivity and security 94 72 ► Everywhere: all industries are integrating wireless 61 ► Global Lea
Slide 84: Market Dynamics and Challenges
Market Dynamics and Challenges ► # Connections (Billion Units)1 ► Global IoT connections by segment (2020F)2 30 Rest 26,7 25 23,3 20,7 20.5% 20 18,3 Smart Home 15,6 16,4 29.3% 15 10 Manufacturing & industry 4.0 6.5% 5 0 Smart 7.2% 2015 2016 2017 2018 2019 2020 buildings 7.2% 17.6% IoT (26% CAGR) Con
Slide 85: Bureau Veritas Position
Bureau Veritas Position 1. Global Footprint 2. Cover all key technologies 3. Active participation on 40+ technical committees 4. Leader in most important segments 5. Comprehensive Service Portfolio Investor Days December 7 & 8, 2017 86
Slide 86: SmartWorld Journey
SmartWorld Journey ACQUISITIONS | GROWTH 2011 2013 2016 2017 2018 LOCATIONS NEW SEGMENTS +Consumer Electronics +Mobile Phones +Smart Home +Intelligent +Smart Payment NEW +Wearables +Smart City Transportation/V2X +Products (Cybersecurity) +Smart Grid +Mobile Phones/V2X (5G) Local Area Network 2G/3G/4
Slide 87: Capabilities/services
Capabilities/services 24 locations. 150+ test environments. EMC/RF Conformance OTA Product electromagnetic interference and Software and network performance Antenna Performance radio spectrum protection Chemical SAR Reliability Mechanical and climatic conditions Restricted / hazardous chemicals Huma
Slide 88: SmartWorld Global Footprint
SmartWorld Global Footprint Europe 2016/17+ Asia 2016/17+ Americas 2016/17+ Positioned to meet client needs AMERICAS EUROPE ASIA Argentina France China Brazil Germany India USA Japan Taiwan South Korea Investor Days December 7 & 8, 2017 89
Slide 89: SmartWorld Selected Business Cases
SmartWorld SELECTED BUSINESS CASES Investor Days December 7 & 8, 2017 90
Slide 90: Growth Initiative: Cybersecurity Market Dynamics
Growth Initiative: Cybersecurity Market Dynamics IoT Device Cybersecurity growth1 BUYER PROFILE Payment systems $ Consumer & Business Devices Critical 2015: $9bn Increasing Regulations Public / 41% CAGR Common Government agencies Financial 2020: $50bn Criteria market National Critical infrastructure
Slide 91: Growth Initiative: Cybersecurity
Growth Initiative: Cybersecurity BV-LETI (CEA) Approach (MoU) Solution Summary ► Technical Partner ♦ Reference Lab for the French security agency ♦ #2 innovation center in the World1 ♦ #1 innovation center in Europe1 ► Phase 1 Service Launch ♦ R&D Support – assess all known cyber risks / vulnerabili
Slide 92: SmartWorld Case Study: Smart Payment
SmartWorld Case Study: Smart Payment Mobile payments growth1 ► VISA / EMVCo accreditations $ TRANSACTION VALUE 2016: $110.5bn 48% CAGR ► Completes our Smartworld value chain solutions 2021: $775.4bn ► Recognized brand in smart payment market ► Experienced team >15 years in business Proximity payment
Slide 93: SmartWorld Growth Initiative
SmartWorld Growth Initiative Bureau Veritas Differentiation ► Network: Spans the globe | 10 countries ► Scale: 1,000+ highly skilled personnel | 150+ test environments ► Reputation: 100+ accreditations / recognitions | Competent in all key wireless technologies ► Segment Leadership: Addressing all k
Slide 94: Our 5 Growth Initiatives
Our 5 Growth Initiatives Growth Opex Building & Agri-Food SmartWorld Automotive Infrastructure Initiative Oil & Gas, Power, Chem. Build recurring Expand in a large Leverage Capitalize on key Leverage leading business models market driven our #1 position, expertise in supply global position Descripti
Slide 95: Automotive
Automotive Automotive Capitalize on key expertise in supply chain services and connectivity to become a recognized player €130 – 150m
Slide 96: Growth Initiatives: Automotive
Growth Initiatives: Automotive Key Market Drivers Revenue ambition over 2016-2020e (€m) ► Leading industrial economic sector: €9 trillion 242 ► World fleet to reach 2bn cars by 2035 (from c1.2bn today) / 222 only c2% of cars are electric today 128 92 103 ► Yearly world car production of c90 million
Slide 97: Automotive TIC Market: strong tailwinds
Automotive TIC Market: strong tailwinds Market Dynamics and Challenges Bureau Veritas positioning ► Technological Shift ► Strong expertise in connectivity ► Automotive product is driven by Regulation ► Development in China in testing homologation services ► Massive Recalls on the rise ► Second-party
Slide 98: Strategic Positioning: serve the full value-chain
Strategic Positioning: serve the full value-chain DESIGN PRODUCTION DISTRIBUTION SALES & AFTER-SALES New Activities • Electric Cars • Connected Cars • Autonomous Cars • Software Quality Expansion Testing & Homologation Conformity of Production Opportunities Europe & China (conventional services) QC
Slide 99: Fast Development of our testing capabilities
Fast Development of our testing capabilities TIRES PROVING GROUND SHANGHAI AUTOMOTIVE HUB AUTO / EMC ► Set up in 2015 ► Electrical & Electronics: ► Electro-Magnetic ► The first proving ground set HVAC, charging, lighting Compatibility testing: up by 3rd party institution Emissions & Immunity in Asia
Slide 100: Automotive – Digital Solutions
Automotive – Digital Solutions CYBER SECURITY SOFTWARE OF CONNECTED EMC GUIDELINES VEHICLES Electromagnetic Development Compatibility Analysis Best Practices & Assessment Investor Days December 7 & 8, 2017 101
Slide 101: Automotive Selected Business Cases
Automotive SELECTED BUSINESS CASES Investor Days December 7 & 8, 2017 102
Slide 102: Real-driving emission measurement
Real-driving emission measurement ► Protocol developed by PSA, T&E and Bureau Veritas to measure real-world figures ► Bureau Veritas acts as a specialized independent 3rd party PSA BV ► Develop the Protocol ► Validate the protocol ► Perform the Real-driving tests ► Ensure the application of the prot
Slide 103: Case Study: Tesla Global Compliance Mgmt.
Case Study: Tesla Global Compliance Mgmt. CLIENT PROJECT Tesla needed the compliance for: ► Car connectivity ► Antenna characterization services ► Type approval for Chinese market (Infotainment and Bluetooth) BUREAU VERITAS ROLE One Stop Shop solution Provider ► Mapping of Market Access Approval acr
Slide 104: Case Study: V2X Spotlight
Case Study: V2X Spotlight DSRC (v2x) installation (m units)1 1 V2V Vehicle to Vehicle • Safety applications • Collision warnings # 150 127 27% 39 V2X 0 2017 2022 Vehicle to V2I Everything 2 Vehicle to Infrastructure Safety, mobility & sustainably • Traffic management DSRC (v2x) Market Size ($m)2 • A
Slide 105: Case Study: V2X Successes
Case Study: V2X Successes USDOT R&D Partner 1st OmniAir Authorized Lab Korea CITS Consortia Winner 2015 2017 2017 ► Developed Test Specifications ► Authorized by OmniAir ► Cooperative Intelligent Transportation System ► In partnership with OmniAir ► BV is a Board Member & Chairs Technical Group ► Sp
Slide 106: Automotive Growth Initiatives
Automotive Growth Initiatives Bureau Veritas Differentiation ► Market entry through connectivity expertise ► Close relationships with OEMs ► Well positionned all along the Automotive Value-Chain ► Leveraging our digital capabilities to build a leadership position Investor Days December 7 & 8, 2017 1
Slide 107: Our 5 Growth Initiatives
Our 5 Growth Initiatives Growth Opex Building & Agri-Food SmartWorld Automotive Infrastructure Initiative Oil & Gas, Power, Chem. Build recurring Expand in a large Leverage Capitalize on key Leverage leading business models market driven our #1 position, expertise in supply global position Descripti
Slide 108: Building & Infrastructure
Building & Infrastructure Building & Infrastructure Leverage leading global position in sizeable and growing markets €350 – 400m
Slide 109: Growth Initiative: Building & Infrastructure
Growth Initiative: Building & Infrastructure Key Market Drivers Revenue ambition over 2016-2020e (€m) 890 ► €4 trillion annual global infrastructure investments 840 ► Global population to reach 8 billion by 20231 611 558 ► Middle class to become the majority of the world population 489 by 2020 for t
Slide 110: Building & Infrastructure Platform
Building & Infrastructure Platform Evolution of Bureau Veritas B&I Business 1. From private properties to both private enterprises and public infrastructure assets 2. From building regulatory inspection to both building and infrastructure project management services 3. From a leadership position in
Slide 111: Extensive Scope of Services
Extensive Scope of Services Bureau Veritas present all along the B&I Value Chain Investor Days December 7 & 8, 2017 112
Slide 112: Strengthening BV's Leadership Position
Strengthening BV’s Leadership Position Acquisitions since 2015: diversifying our capabilities 2017 Shanghai Project Management 2016 China €50m1 HCD California Code Check UK US 2015 €10m1 €4m1 Chongqing Lianseng Primary Integration Shandong Chengxin China US China €30m1 €20m1 €40m1 McKenzie Group2 Au
Slide 113: Creating a Global Footprint
Creating a Global Footprint €0 to 10m €10 to 30m €30 to 50m Above €50m Acquisitions Organic 2012 2013 2014 2015 2016 2017 Kanagawa 2012 Building Jyutaku Inspection China France Singapore Japan Japan Brazil China China China UK China US US Mexico Australia1 (1) Signed, closing pending Investor Days D
Slide 114: Going Digital
Going Digital Digital Capabilities ► Service delivery based on multiple digital platforms ► BIM (Building Information Modeling) as a reality for B&I related TIC services ► Bureau Veritas’s proprietary Digital Cloning services: A new concept of 3D asset register BIM for Minoritymass Sports Centre - C
Slide 115: Building & Infrastructure Selected Business Cases
Building & Infrastructure SELECTED BUSINESS CASES Investor Days December 7 & 8, 2017 116
Slide 116: Business Cases: Building Estate
Business Cases: Building Estate Sinar Mas Centre Shanghai DAMAC Luxury Properties Emaar The Tower China Kingdom of Saudi Arabia Dubai €500m INVESTMENT €1,400m INVESTMENT €1,000m INVESTMENT Construction Supervision Construction Supervision 3rd Party Structural Design Peer Review Investor Days Decembe
Slide 117: Business Cases: Transportation
Business Cases: Transportation Grand Paris Express Chendu Tianfu International Arteris Highway Operator France China Brazil €25,000m INVESTMENT €6,600m INVESTMENT OPEX Services Technical Control & Vulnerability Services Construction Supervision Highway Infrastructure Investor Days December 7 & 8, 20
Slide 118: Business Cases: Facilities
Business Cases: Facilities Texas Rangers New Stadium Minoritymass Sports Centre Meydan One Mall US Inner Mongolia - China Dubai €1,100m INVESTMENT €90m INVESTMENT €1,500m INVESTMENT Plan Review and Inspection Services Construction Supervision 3rd Party Structural Design Peer Review Investor Days Dec
Slide 119: Competitive Advantages
Competitive Advantages Bureau Veritas Differentiation ► The Global Building & Infrastructure TIC Leader ► Diversified portfolio based on “Build; Buy and Borrow” strategy ► Digital oriented business model ► Covering the entire Building and Infrastructure value chain Investor Days December 7 & 8, 2017
Slide 120: 2 Priority Countries
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Slide 121: North America
North America
Slide 122: Country Focus: USA
Country Focus: USA Key facts GDP GDP Growth ► Infrastructure: 10-year $1 Trillion plan $19.5 +2.2% ► Construction: 3.3% CAGR over 2015-2020 Trillion 21.7% of the total ► Chemical: 310 projects and $185 Billion global GDP1 % OF in capital investment Government Spending Services account for on Infrast
Slide 123: Key Market Trends
Key Market Trends ► Stabilizing Oil, Gas and Chemicals Sector ► Demand for visibility of the Supply Chain ► Increasing need of TIC services from BtoC Industry ► Disruptive technologies in Automotive and Transportation ► Cyber security risks, digital opportunities and challenges Investor Days Decembe
Slide 124: Market Presence
Market Presence 129 Offices and Labs 6,000 Employees Canada Own 44% of food testing and 66% of environmental testing market in Canada Northwest Top 10 players in HSE consulting services Northeast Largest provider of elevator inspection services Southeast West Coast Own 12% of cargo inspection Larges
Slide 125: The ambition: growing and diversifying the portfolio
The ambition: growing and diversifying the portfolio 2015 2020 14% 24% Oil & Gas 9% Building & Infrastructure 41% 1% Agri & Food 53% 7% 10% Power & Utilities Rest of Business1 16% 26% Major Expansion of B&I, Food & Agri and Power & Utilities (1) Rest of Business includes Industrials, Services, Metal
Slide 126: Priority Markets
Priority Markets O&G & Chemicals Building & Infrastructure Agri-Food Protect Core M&A targeted at B&I Maxxam Recovery CAPEX Opportunities Geographic Expansion Greenfield Investments Extend to OPEX Market Leveraging Expertise Hub & Spoke Investor Days December 7 & 8, 2017 127
Slide 127: Oil & Gas and Chemicals
Oil & Gas and Chemicals ► Protect Core O&P business ► Extend TIC offer for OPEX Market ► Continue advancement of Lab Outsourcing and Mobile Lab Solutions ► Expand digital platform to build operational agility Investor Days December 7 & 8, 2017 128
Slide 128: Client testimonials: Dow and subsea oil & gas
“Dow’s Trusted service provider for Global Inspections of Capital Equipment.” “The R&D department relies on Bureau Veritas for verification of test results during development of new subsea oil & gas equipment”
Slide 129: Building & Infrastructure
Building & Infrastructure ► Geographic expansion of existing code compliance services ► Active M&A strategy ► Robust and speedy integration of acquired companies ► Leveraging expertise and technologies from Bureau Veritas Network Investor Days December 7 & 8, 2017 130
Slide 130: Construction QA/QC at 24 US Army Installations
“Providing construction QA/QC, project management assistance and code compliance services for 9,000 hotel rooms in 63 hotels at 24 US Army Installations”
Slide 131: A leader in Data center commissioning
“A leader in Data center commissioning with an exceptional industry reputation and technical capabilities across the US and globally” ► c€20m Annual Revenue ► 117 employees / 7 locations ► Key expertise: ♦ Full Life Cycle Commissioning ♦ Operational Risk Management 132
Slide 132: Agri-Food
Agri-Food ► Establish a centralized US platform for Agri-Food ► Leverage food lab testing leadership of Maxxam and digital platforms of Safe Supply and SafeOps ► Accelerate geographic expansion in the US food market ► Strategic M&A to enhance service offerings Investor Days December 7 & 8, 2017 133
Slide 133: Digital platform and General Mills sourcing
“Digital platform providing full view of supply chain and delivering efficiency and scalability” “General Mills’ responsible sourcing eyes and ears for global suppliers”
Slide 134: Focus on Diversifying our Portfolio
Focus on Diversifying our Portfolio Commercial Agile operating Accelerate growth discipline model ► Investments in Sales ► Commercial Team with focus ► Integration of capabilities Resources and Marketing; on national reach and broad and sub-brands for single Matrix Sales Structure spectrum of servic
Slide 135: Management Team
Management Team ► Strong and renewed leadership Team ► Strong Alignment ► Community Engagement 120 YEARS of Industry Experience Newcomers Investor Days December 7 & 8, 2017 136
Slide 136: China
China
Slide 137: Country focus: China
Country focus: China Key facts GDP TREND OF GDP €11.6 12.7 14.0 15.4 ► Second economy worldwide, to become the First by 20301 Trillion +7.3% 11.6 ► Number one TIC market worldwide 15% of the total CAGR 2017 2018 2019 2020 global GDP1 From 2017 to 20201 ► Number one BV country in terms of revenue HIG
Slide 138: Long history in China
Long history in China ► BV has a long story in China with strong growth momentum #1 BV Country Largest SPM International 3 Major B&I Marine CPS GSIT Commodities construction Acquisitions Acquisition Break Est. in services initiated its services services supervision CTS Lab VEO China 1 Billion € Chin
Slide 139: Country focus: China
Country focus: China Country mapping Revenue split by end-markets Other Marine 8% 5% Auto Oil & Gas 4% 10% DOMESTI c50% C P&U 9% Diversified Portfolio B&I 11% c50% EXPORT Test Laboratory Office Consumer Goods 53% Investor Days December 7 & 8, 2017 140
Slide 140: China TIC Market Liberalization
China TIC Market Liberalization On-going Liberalization New Accessibility BV Focus Government / Public €21bn Addressable / Open 17 Current 2020 4 Liberalization Opportunity In-House ► Opening Up Progressively ► BV Partnerships To Enable ► Footprint, Capabilities, Market Share Penetration Into New Se
Slide 141: Commodities, Industry & Facilities
Commodities, Industry & Facilities
Slide 142: CIF China: Key Market Trends
CIF China: Key Market Trends ► Investment & Trade INVESTMENT1 ► Quality & Efficiency $ + 15% growth < 1% OFDI FDI ► Liberalization FIX ASSET2 ► Belt & Road initiative $ 15% + growth €6.0Trn ♦ Country: 68 INFRASTRUCTURE FIX ASSET VALUE ♦ Population: 4.4 Billion CIF CIF GEOGRAPHY EMPLOYEES ♦ GDP: €25.
Slide 143: Role of JV in China
Role of JV in China ► Customer Penetration ♦ Access Chinese Global Fortune 500 Companies Customer ♦ Leverage Network in China and Overseas ► Business Diversification Diversification ♦ Extension scope of Service, No 1# Jianli in China ♦ Moving from CAPEX to OPEX ► Innovation China Innovation ♦ Develo
Slide 144: CIF China: Market Focus Organization
CIF China: Market Focus Organization Building Building & Food Automotive Power & Utilities O&G / Chemical Commodities Industry Infrastructure & Infrastructure & Agriculture Utilities Infrastructure Safety Electric Vehicle Renewable OPEX Trading Advanced infrastructure Distribution Chemical Extended
Slide 145: CIF China - B&I Market Dynamics
CIF China - B&I Market Dynamics Road Industrial Rail & Highway Airport Real Estate Metro Investment Investment Investment Investment Investment Investment €907bn €507bn €1,040bn €267bn €7,733bn €267bn ► High Rise building ► Light Rail & Metro ► Airports ► Utilities China 13th Five Year Plan (2016 -
Slide 146: CIF China – P&U Market Dynamics
CIF China – P&U Market Dynamics Fossil Hydro Wind Nuclear Solar Grid Investment Investment Investment Investment Investment Investment €165bn €55bn €95bn €80bn €100bn €430bn ► Grid ► Overseas ► Renewable China 13th Five Year Plan (2016 - 2020) @ Gov.net Investor Days December 7 & 8, 2017 147
Slide 147: Consumer Products Services
Consumer Products ; Services |
Slide 148: CPS in China: Key Trends
CPS in China: Key Trends Private Consumption1 ► Private Consumption Drives Domestic Demand $ $4.2 9% CAGR Trillion Growth 2015-2020 ► Persistent Decline in Exports Reversed Exports (H1 2017 vs 2016)2 in Key CPS3 Sectors H1 2017 7.9% ► Liberalization will Continue CPS3 Geography CPS Employees ► Growt
Slide 149: CPS in China: Priorities
CPS in China: Priorities Accelerate Optimize Supply Chain Expanding Platform Technology Segments Quality Management Test Laboratory Office ► +23 Locations Since 2015 ► Electrical & Electronics ► Partner throughout the supply chain Organic + External + Partnership ► Automotive ► South / East / Nort
Slide 150: Accelerate Technology Segments
Accelerate Technology Segments Electrical & Electronics Automotive Wireless / Smartworld INNOVATION & TECHNOLOGY CONVERGENCE ► Global Solution ► Automotive Testing Hub ► Smart Home/Wearables in Shanghai ► UX Testing ► Automotive: ► Product Solution V2X | Connected Cars ► New Energy With Full Service
Slide 151: Solutions Across the Supply Chain (Environmental)
Solutions Across the Supply Chain (Environmental) PLAN BUY MAKE SELL USE Develop the plan Select Best in Class Verify & Ship Customer Insight Public Suppliers Product Communication EU BRAND Consume with Confidence #1 Market / Brand Review Environmental Audit Finished Product RSL Analyze customer IPE
Slide 152: CPS in China: Competitive Advantages
CPS in China: Competitive Advantages In Summary Key Enablers ► Growing Market: Domestic Market | Exports | Liberalization ► Expanding Platform: 7,500 Employees | 50 offices | 28 locations ► Focus on Technology: Electrical & Electronics | Technical Leadership World Class Service Delivery Automotive |
Slide 153: Q&A
Q&A 154
Slide 154: Bureau Veritas Investor Days
Bureau Veritas Investor Days Plenary session December 7, 2017 © Bureau Veritas
Slide 155: Digital@BV
Digital@BV
Slide 156: Digital Transformation
Digital Transformation
Slide 157: There are many digital disruptions to leverage
There are many digital disruptions to leverage … Blockchain Big Data Industry 4.0 Collaborative Economy Cloud Social Business Artificial Open API Intelligence Fast IT Investor Days December 7 & 8, 2017 158
Slide 158: Digital@BV focuses on 3 business priorities
Digital@BV focuses on 3 business priorities DIGITAL NEW DIGITAL NEW TIC DIGITAL EFFICIENCY OPERATING MODELS SERVICES Boost Profitability Accelerate Growth Diversify in of existing TIC Services with alternative models new market segments Conformity 4.0 One-stop- shop Cost-efficient offer Digital cust
Slide 159: Digital@BV focuses on 3 business priorities
Digital@BV focuses on 3 business priorities DIGITAL NEW DIGITAL NEW TIC DIGITAL EFFICIENCY OPERATING MODELS SERVICES Boost Profitability Accelerate Growth Diversify in of existing TIC Services with alternative models new market segments Conformity 4.0 One-stop- shop Cost-efficient offer Digital cust
Slide 160: Major initiatives already underway
Major initiatives already underway DIGITAL EFFICIENCY Laboratories: LIMS Inspection Field Force Management ► LIMS1 rationalization ► Marine: integrated end-to-end platform ♦ Simplified our LIMS landscape composed of multiple solutions ♦ Simplified the process (LEAN) B&I: Project Management ► Sistema
Slide 161: Digitalization for Processes and People
Digitalization for Processes and People DIGITAL EFFICIENCY Operational Processes Workforce Next generation of digital End to end field management platform workplace tools LIMS harmonization Digitalized shared service centers Data management Training & Change management FLEXIBLE AND SCALABLE INFORMAT
Slide 162: Digital@BV focuses on 3 business priorities
Digital@BV focuses on 3 business priorities DIGITAL NEW DIGITAL NEW TIC DIGITAL EFFICIENCY OPERATING MODELS SERVICES Boost Profitability Accelerate Growth Diversify in of existing TIC Services with alternative models new market segments Conformity 4.0 One-stop- shop Cost-efficient offer Digital cust
Slide 163: One-Stop-Shop: a new engagement channel
One-Stop-Shop: a new engagement channel CUSTOMER EXPERIENCE International eCommerce platforms External inspectors Marketplace BV LEAD BV QUIKTRAK lead.bureauveritas.com Managed 200k deployed in +10 countries inspections in 2017 Easier and faster engagement for SMB More agile & flexible model Cost ef
Slide 164: Zoom on the RevoQuest platform of QuikTrak
Zoom on the RevoQuest platform of QuikTrak CUSTOMER EXPERIENCE QUIKTRAK Investor Days December 7 & 8, 2017 165
Slide 165: Digital@BV focuses on 3 business priorities
Digital@BV focuses on 3 business priorities DIGITAL NEW DIGITAL NEW TIC DIGITAL EFFICIENCY OPERATING MODELS SERVICES Boost Profitability Accelerate Growth Diversify in of existing TIC Services with alternative models new market segments Conformity 4.0 One-stop- shop Cost-efficient offer Digital cust
Slide 166: Conformity 4.0: a game changer for inspection
Conformity 4.0: a game changer for inspection TECH-ENABLED SERVICES DISRUPTION 3 DISRUPTION 1 ANALYTICS MODEL DISRUPTION 4 Inspection DRONES + IMAGE RECOGNITION DISRUPTION 2 Apply Expertise Report at a time T SUPERVISION PLATFORM IN ASSET REGISTER / DIGITAL TWIN On-Site Testing SENSORS + ROBOTICS In
Slide 167: BV has been a pioneer in 3D Asset Register
BV has been a pioneer in 3D Asset Register TECH-ENABLED SERVICES Full digital TWIN Collaborative “reality model” of a Marine and Offshore asset accessible of an existing Industrial asset leveraging on a web browser, shared with the overall photogrammetry and laser scan technics, ecosystem and integr
Slide 168: BV and Avitas Systems partner to go beyond
BV and Avitas Systems partner to go beyond TECH-ENABLED SERVICES ► Global leader in Industrial inspection ► A cloud-based platform designed to perform sensor- based automated defect recognition and risk-based ► Neutral positioning/Accreditations optimization analytics ► A strong technical expertise
Slide 169: Towards next generation AI-based inspections
Towards next generation AI-based inspections TECH-ENABLED SERVICES Automate Data AI1 to define risk & Review results & Share & collaborate Collection severity over time focus inspections over time REMOTE VISUAL & INFRARED DEEP LEARNING NETWORKS DASHBOARDS TO ORGANISE ASSET INTEGRITY MANAGER AERIAL I
Slide 170: Digital@BV focuses on 3 business priorities
Digital@BV focuses on 3 business priorities DIGITAL NEW DIGITAL NEW TIC DIGITAL EFFICIENCY OPERATING MODELS SERVICES Boost Profitability Accelerate Growth Diversify in of existing TIC Services with alternative models new market segments Conformity 4.0 One-stop- shop Cost-efficient offer Digital cust
Slide 171: Assets are now digital assets
Assets are now digital assets… NEW TIC DIGITAL MARKET The connected car SMARTPHONE UX SAFETY CONNECTIVITY SAFETY SENSORS CYBERSECURITY DIGITAL ENGINE SAFETY AND SECURITY DATA PRIVACY MGT SYSTEM REMOTE NETWORK (ISO 27K) V2X / DSRC CONNECTIVITY SAFETY AND SECURITY BV SMART WORLD BV CERTIFICATION Inves
Slide 172: Linked to a growing number of Digital Norms
… linked to a growing number of Digital Norms NEW TIC DIGITAL MARKET Evolution of the number of IoT objects Evolution of the number of digital Norms c.[VALEUR] GDPR c.30bn 14 c.[VALEUR] 5 1 3 2015 2020 F 2025 F 1999 2004 2009 2014 2019 Source: CEA Investor Days December 7 & 8, 2017 176
Slide 173: It is starting with Systems Certification
It is starting with Systems Certification… NEW TIC DIGITAL MARKET Cybersecurity Certifications Data Privacy Certifications ► ISO 27K, IEC 62443, … ► Suite of certifications to ensure transparency & the proper use ► Cyberessentials accreditation (UK Scheme) of personal data ► Multiple guidelines + So
Slide 174: The largest opportunity will be on testing
… but the largest opportunity will be on testing NEW TIC DIGITAL MARKET Bureau Veritas strategic position in the digital testing space – SMART WORLD 2013 2016 2017 2018 Healthy Pipeline for acquisitions Building Strong Relationships of specialized players with Global Brands Investor Days December 7
Slide 175: Digital is the new wave of the TIC Market
Digital is the new wave of the TIC Market NEW TIC DIGITAL MARKET Digital TIC Chemical TIC Mechanical TIC 1828 1990 2015 2050 Investor Days December 7 & 8, 2017 179
Slide 176: Digital@BV focuses on 3 business priorities
Digital@BV focuses on 3 business priorities DIGITAL NEW DIGITAL NEW TIC DIGITAL EFFICIENCY OPERATING MODELS SERVICES Boost Profitability Accelerate Growth Diversify in of existing TIC Services with alternative models new market segments Conformity 4.0 One-stop- shop Cost-efficient offer Digital cust
Slide 177: BV is incubating tomorrow's technologies
BV is incubating new tomorrow’s technologies… Remote inspection through glasses Drone Field Control deployed in US/UK/CN on-going POCs LOW SEVERITY HIGH LEVEL OF AUTO GEN REPORT + CONFIDENCE HUMAN VALIDATION YES SAMPLE LAB TESTING BV EXPERT SAMPLE NO ANALYSIS YEARS OF BV EXPERTS DECISION Artificial
Slide 178: Digital as a key lever of the 2020 plan
Digital as a key lever of the 2020 plan DIGITAL NEW DIGITAL NEW TIC DIGITAL EFFICIENCY OPERATING MODELS SERVICES Boost Profitability Accelerate Growth Diversify in of existing TIC Services with alternative models new market segments Conformity 4.0 One-stop- shop Cost-efficient offer Digital customer
Slide 179: B&I France Grand Paris
B&I France Grand Paris
Slide 180: Building & Infrastructure in France
Building & Infrastructure in France 2017 Sep YTD Revenue split ► Market structured between: ♦ Capex services (Building Control, Safety on Site) B&I Capex ♦ Opex services (Regulatory In-Service Inspections on assets or equipment and Health & Safety inspection) 35% ► BV is leader in this concentrated
Slide 181: B&I Digital suites of tools
B&I Digital suites of tools Suitable suites of production tools covering all the steps of the process from scheduling to data management LEAN Report automation Client portals Industrialize Mobility Mass market Shared Services Schedule Productivity Data Mining New services WITH Quality & Mobile Plann
Slide 182: B&I Capex Market trends
B&I Capex Market trends B&I Capex Sales versus Building permits over the past 5 years (100 base index) ► Construction programs rebound since the end of 2015, driven by the housing market 105 Order book and large infrastructure projects 95 Building 85 permits However still below 2007 pre-crisis level
Slide 183: Grand Paris Express: Europe's largest urban project
Grand Paris Express: Europe’s largest urban project ► Grand Paris Region: ♦ 12 million inhabitants ♦ 1/3rd of French GDP ► An ambitious project to develop the existing transport network ♦ 30 € Billion investments ♦ 200 km of new underground metro lines (doubling the existing network) ♦ 68 new rail s
Slide 184: BV's role, sales and opportunities
BV’s role, sales and opportunities ► €20m contracts already won: ► BV’s solutions: BV captured 30% market share ♦ Structural audits of the existing upper structures ► €20m offers currently in the pipeline ♦ Building control / design review ► More opportunities to be seized ♦ Safety on-site ► To be d
Slide 185: A full BIM project
A full BIM1 project (1) BIM: Buildiong Information Modelling Investor Days December 7 & 8, 2017 191
Slide 186: Q&A
Q&A 192
Slide 187: Key Takeaways
Key Takeaways ► Strategy execution well underway, already delivering results ► Bureau Veritas: the TIC leader in digital ► Confident in achieving our 2020 ambition Investor Days December 7 & 8, 2017 193
Slide 188: Bureau Veritas Investor Days
Bureau Veritas Investor Days Plenary session December 7, 2017 © Bureau Veritas