Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — Q1 2018 Earnings Presentation
31 slides from Bureau Veritas Sa's earnings presentation, Apr 26, 2018
Slide 1: Q1 2018 revenue
2018 Q1 revenue April 26, 2018
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: Q1 2018 revenue agenda
Q1 2018 revenue agenda ► Highlights ► Financial Review ► Business Review ► Outlook ► Q&A ► Appendix
Slide 4: Highlights
7 FHighlights
Slide 5: Q1 2018 highlights
Q1 2018 highlights ► Group revenue at €1.10bn, up 4.7% year-on-year at constant exchange rates ► Organic revenue growth of +2.6% ♦ 5 out of 6 businesses growing at 3.6% on average, including Certification at +6.7%, Consumer Products at +5.9% and Buildings & Infrastructure at +4.1% ♦ Industry returne
Slide 6: Strengthening the Group's leaner organisation
Strengthening the Group’s leaner organisation Didier MICHAUD-DANIEL CEO Consumer Products Commodities, Industry & Facilities Marine & Offshore & Services Eduardo CAMARGO Juliano CARDOSO Natalia SHUMAN Philippe DONCHE-GAY Oliver BUTLER EVP EVP EVP President President Latin America MAP North America M
Slide 7: Q1 2018 acquisitions, adding c.€80m of revenue
Q1 2018 acquisitions, adding c.€80m of revenue 1 Buildings & Infrastructure Agri-Food February Agri-Food testing c.€70m and analysis Technical Assessment and Project Management Assistance Services Food & March Environment testing Total of Opex Oil & Gas, Power & Utilities, Chem. €6m Agri-Food Januar
Slide 8: Financial Review
Financial Review
Slide 9: Q1 2018 revenue growth
Q1 2018 revenue growth (in € millions) +4.7% at constant currency +2.1% (8.0%) 1,138.0 +2.6% 1,100.3 Q1 2017 Organic 1 Acquisitions Currencies Q1 2018 (1) Organic growth is the increase in revenue versus last year, at constant currency and scope (i.e. acquisitions excluded) Q1 2018 revenue - April 2
Slide 10: Q1 2018 revenue growth by business
Q1 2018 revenue growth by business % @ constant revenue currency 26% Buildings & Infrastructure 4.1% 8.9% +13.0% 8% Certification 6.7% +6.7% 93% of the portfolio 13% Consumer Products growing 5.9% 0.7% +6.6% organically at 3.6% 23% Agri-Food & Commodities on average 3.1% 1.2% +4.3% 23% Industry1 (1.
Slide 11: Organic growth driven by both Base Business & Growth Initiatives
Organic growth driven by both Base Business & Growth Initiatives Organic revenue for the Base Business Organic Growth Q1 2018 performance 4% 2% 1.3% 0.9% ► Base Business growing organically Two-thirds 0% ♦ Q1 up 0.9% organically (1.1)% (2.2)% ♦ Excluding M&O and O&G Capex, the -2% (3.7)% Base Busine
Slide 12: 5 Growth Initiatives off to a good start led by B&I
5 Growth Initiatives off to a good start led by B&I Buildings & Infrastructure +12.5% Opex +0.4% Q1 2018: Agri-Food +5.1% +12.8% growth overall of which +6.2% organic vs. +4.6% organic in Q1 2017 Automotive +3.3% vs. +6.9% organic in FY 2017 SmartWorld +6.9% 0 Q1 2018 total revenue for all Growth 20
Slide 13: Business Review
Business Review
Slide 14: Marine & Offshore (7% of revenue)
Marine & Offshore (7% of revenue) KEY FINANCIALS Q1 2018 HIGHLIGHTS 2018 OUTLOOK ► New construction: double-digit decline, ► Slightly negative organic growth Q1 2018 Q1 2017 Var. improvement of new orders (see below) not (in € millions) yet impacting revenue ♦ New construction expected to stabilize
Slide 15: Marine market perspective
Marine market perspective Worldwide trend in new orders New ship orders (2018e vs. 2017) (In mGT) 120 Trend 100 Dry Bulk Containers 80 Other Dry 20-year average Tankers 60 Gas (LNG carriers) Pax / Cruise ships 40 Offshore Vessels FPSO/FSU 20 0 2013 2014 2015 2016 2017 2018e 2019e
Slide 16: Agri-Food & Commodities (23% of revenue)
Agri-Food & Commodities (23% of revenue) KEY FINANCIALS Q1 2018 HIGHLIGHTS 2018 OUTLOOK ► Improving growth vs. 2017 ► O&P (+1.6%)*; solid growth in Europe (in € millions) Q1 2018 Q1 2017 Var. (market share gains), more difficult in North ♦ M&M recovery to carry on America (price pressure, weather) ♦
Slide 17: Industry (23% of revenue)
Industry (23% of revenue) KEY FINANCIALS Q1 2018 HIGHLIGHTS 2018 OUTLOOK Q1 2018 Q1 2017 Var. ► Oil & Gas Capex decline: -17% ► Return to slight positive organic (in € millions) ♦ Tail end of some contracts (Aust./Asia) revenue growth: Revenue (9.7)% ♦ Oil & Gas Capex: large capex project 250.2 277.
Slide 18: Buildings & Infrastructure (26% of revenue)
Buildings & Infrastructure (26% of revenue) KEY FINANCIALS Q1 2018 HIGHLIGHTS 2018 OUTLOOK ► Sustained solid growth on both Capex ► Construction-related activities (60% of (in € millions) Q1 2018 Q1 2017 Var. and Opex related services divisional revenue): Revenue +8.8% ♦ Double-digit growth in Asia
Slide 19: Certification (8% of revenue)
Certification (8% of revenue) KEY FINANCIALS Q1 2018 HIGHLIGHTS 2018 OUTLOOK ► Sustained robust growth expected (in € millions) Q1 2018 Q1 2017 Var. ► Growth spread across most regions and services categories ♦ H1 solid, H2 lower (end of 2015 Revenue (2.4)% standard transition period) 84.9 87.0 ► Hi
Slide 20: Consumer Products (13% of revenue)
Consumer Products (13% of revenue) KEY FINANCIALS Q1 2018 HIGHLIGHTS 2018 OUTLOOK ► Sustained mid-single digit growth (in € millions) Q1 2018 Q1 2017 Var. ► E&E: mid-single digit growth led by expected Revenue (3.7)% Automotive & Mobile (Europe and US) 139.7 145.0 ♦ SmartWorld and Automotive support
Slide 21: Outlook
Outlook
Slide 22: Confirmed 2018 outlook
Confirmed 2018 outlook Full-year organic Full-year adjusted Full-year cash flow revenue growth to operating margin to generation accelerate slightly improve at to improve at vs. full-year 2017 constant currency constant currency vs. full-year 2017 vs. full-year 2017 Q1 2018 revenue - April 26, 2018
Slide 23: Q&A
Q&A
Slide 24: 2018 Financial Calendar and Contacts
2018 Financial Calendar and Contacts ► Annual Shareholders’ Meeting 2017 - May 15, 2018 ► Q3 2018 Trading update - October 25, 2018 ► H1 2018 Results - July 26, 2018 Investor Relations Information Bureau Veritas Head Office – 40/52 Boulevard du Parc 92200 Neuilly-sur-Seine, France Laurent Brunelle H
Slide 25: Appendix
Appendix
Slide 26: Revenue by business
Revenue by business Q1 2018 Q1 2017 (in € millions) €m Organic Scope FX €m Organic Scope FX Marine & Offshore 83.6 (8.5)% - (5.4)% 97.1 (1.4)% 1.6% (0.8)% Agri-Food & Commodities 250.1 +3.1% +1.2% (9.4)% 263.6 0.6% 7.8% 3.1% Industry 250.2 +1.5% (1.3)% (9.9)% 277.2 (1.8)% 1.5% 3.7% Buildings & Infra
Slide 27: Portfolio of businesses (Q1 2018)
Portfolio of businesses (Q1 2018) Revenue by business Marine & Offshore 7% 13% Agri-Food & Commodities 8% 23% Industry Buildings & Infrastructure 26% 23% Certification Consumer products Q1 2018 revenue - April 26, 2018 27
Slide 28: Forex: sharp negative impact in Q1 2018
Forex: sharp negative impact in Q1 2018 Q1 2018 revenue currency exposure Currency change y/y OTHER 11.5% TRY 0.8% USD (and pegged) -13.4% PEN 0.9% CNY -6.1% COP 1.2% KRW 1.4% EUR 30.0% CAD -9.3% ARS 1.2% INR 1.7% HKD -14.1% TWD 1.4% AUD -10.1% SGD 1.6% BRL -16.1% JPY 2.1% GBP -2.6% CLP 2.9% CLP -5.
Slide 29: Ownership at March 31, 2018
Ownership at March 31, 2018 1.6% Wendel Group 40.1% Managers and employees 56.8% Free float Treasury shares 1.5% Q1 2018 revenue - April 26, 2018 29
Slide 30: 2020 ambition
2020 ambition Add €1.5bn Above 17% Continuous of incremental adjusted high revenue1 operating Free Cash Flow Half organic margin1 generation Half acquisition 5-7% organic growth by 2020 (1) At 2015 plan initial exchange rates (as presented during October 2015 Investor Days) Q1 2018 revenue - April 2
Slide 31: Glossary
Glossary Adjusted Operating Profit (AOP) excludes amortization of GRT (Marine): Gross Register Ton acquisition intangibles, goodwill impairment, restructuring, acquisition and disposal-related items (non-recurring items) GS: Government Services Adjusted Operating Margin is defined as IoT: Internet o