Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — Q3 2021 Earnings Presentation
44 slides from Bureau Veritas Sa's earnings presentation, Oct 26, 2021
Slide 1: Bureau Veritas
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
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 Q3 2021 REVENUE 5
Slide 6: Key developments in Q3 2021
Key developments in Q3 2021 Organic revenue Benefiting from the diversification performance and strong underlying business trends Strong momentum with BV Green Line of services & solutions Thought leadership in Sustainability Non-financial rating agencies & Listings recognition Q3 2021 REVENUE 6
Slide 7: Q3 2021 highlights
Q3 2021 highlights ORGANIC REVENUE GROWTH OF 7.5% • 4 businesses delivered strong organic growth: Industry +10.4%, Consumer Products +8.7%, Buildings & Infrastructure (B&I) +8.0%, and Agri-Food & Commodities +7.7% REVENUE • Marine & Offshore and Certification grew organically by 2.7% and 0.8% respec
Slide 8: Bureau Veritas organic growth fueled by the excellent diversification
Bureau Veritas organic growth fueled by the excellent diversification ALL ACTIVITIES FUELING THE GROWTH A STRONG FRANCHISE ACROSS ALL CONTINENTS IN PERCENTAGE OF GROUP REVENUE IN PERCENTAGE OF GROUP REVENUE Consumer Products Marine & Offshore Africa, Middle East +16.6% organic growth +8.7% 2.7% + or
Slide 9: Financial Review
FINANCIAL REVIEW
Slide 10: Q3 2021 total revenue increase of 8.5%
Q3 2021 total revenue increase of 8.5% REVENUE EVOLUTION 7.7% at constant currency 7.5% 0.2% 0.8% 1,245.7 1,148.3 1 Q3 2020 Organic Scope Currency Q3 2021 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentation Q3 2021 REVENUE 10
Slide 11: Q3 2021 revenue growth by business
Q3 2021 revenue growth by business % of @ constant revenue currency 29% Buildings & Infrastructure +8.0% +8.0% 22% Agri-Food & Commodities (0.3)% +7.7% +7.4% 21% Industry +10.4% +0.3% +10.7% 14% Consumer Products +8.7% +0.1% +8.8% 7% Marine & Offshore +2.7% +2.7% 7% Certification +0.8% +2.9% +3.7% 1
Slide 12: Business Review
BUSINESS REVIEW
Slide 13: Q3 2021 performance grew across all businesses (1/3)
Bureau Veritas’ Q3 2021 performance grew across all businesses (1/3) Marine & Offshore Agri-Food & Commodities organic organic growth growth • Mid-single-digit decline in New Construction • Agri-Food: slight organic revenue growth with better growth for Agricultural products than for Food • Mid-sing
Slide 14: Q3 2021 performance grew across all businesses (2/3)
Bureau Veritas’ Q3 2021 performance grew across all businesses (2/3) Industry Buildings & Infrastructure organic organic growth growth • Mid-single-digit growth for Power & Utilities – key growth • Major organic growth in Americas led by the US (data engine – fueled by wins in Middle East, Europe an
Slide 15: Q3 2021 performance grew across all businesses (3/3)
Bureau Veritas’ Q3 2021 performance grew across all businesses (3/3) Certification Consumer Products organic organic growth growth • Slight growth against very challenging comparables (post • Recovery driven by a pick-up of activity in China, across catch-up in Q3 2020 of postponed audits) most prod
Slide 16: Outlook
OUTLOOK
Slide 17: 2021 Outlook confirmed
Option 2 2021 Outlook confirmed Based on the excellent year-to-date performance, considering tough comparables in the fourth quarter, and assuming no severe lockdowns in its main countries of operation due to Covid-19, Bureau Veritas still expects for the full year 2021 to: Achieve Improve Generate
Slide 18: Agility, innovation and discipline
Agility, innovation and discipline Health & Safety is an absolute at Bureau Veritas Excellent year-to-date performance from the Group, both operationally and financially Bureau Veritas is well positioned, at the heart of society's challenges and growing demand for transparency A clear roadmap to 202
Slide 19: Q&A
Te28, BUREAU VERITAS Q&A
Slide 20: 2021 & 2022 Financial Calendar & Contacts
2021 & 2022 Financial Calendar & Contacts 2021 & 2022 AGENDA INVESTOR RELATIONS DEPARTMENT Investor Day: December 3, 2021 (morning, virtual) BUREAU VERITAS HEAD OFFICE – 40/52 BOULEVARD DU PARC 92200 NEUILLY-SUR-SEINE, FRANCE Full-Year 2021 Results: February 24, 2022 Laurent Brunelle Q1 2022 revenue
Slide 21: Appendix
Te28 BUREAU VERITAS APPENDIX
Slide 22: Bureau Veritas' Green Line of independent expertise to foster a sustainable world
Bureau Veritas’ Green Line of independent expertise to foster a sustainable world RESOURCES & PRODUCTION NEW MOBILITY RENEWABLES & E-MOBILITY, ALTERNATIVE ENERGIES BUILDINGS ALTERNATIVE SOCIAL, ETHICS ENERGY TRANSITION & INFRASTRUCTURE PROPULSION & GOVERNANCE Onshore and offshore Wind Farms, Solar P
Slide 23: Bureau Veritas is committed to Shaping a Better World
Bureau Veritas is committed to Shaping a Better World SHAPING A BETTER WORLD Strategic SHAPING A SHAPING A SHAPING BETTER axes BETTER WORKPLACE BETTER ENVIRONMENT BUSINESS PRACTICES Sustainability Social & Human capital Natural capital Governance pillars Q3 2021 REVENUE 23
Slide 24: Bureau Veritas priorities to shape a better world
Bureau Veritas priorities to shape a better world SHAPING A SHAPING A SHAPING BETTER BETTER WORKPLACE BETTER ENVIRONMENT BUSINESS PRACTICES Bureau Veritas’ priorities: Bureau Veritas’ priorities: Bureau Veritas’ priorities: • Occupational health and • Diversity and equal • Energy efficiency; • Effec
Slide 25: CSR Key Performance Indicators
Option 2 CSR Key Performance Indicators 9M 2021 FY 2020 2025 target Total Accident Rate (TAR)1 0.27 0.26 0.26 Proportion of women in leadership positions2 21.0% 19.8% 35% Number of training hours per employee (per year)3 21.6 23.9 35.0 CO2 emissions per employee (tons per year)4 N/A 2.44 2.00 Propor
Slide 26: 9M 2021 revenue growth by business
9M 2021 revenue growth by business % of @ constant revenue currency 29% Buildings & Infrastructure (0.3)% +15.5% +15.2% 22% Agri-Food & Commodities (0.1)% +5.2% +5.1% 20% Industry (0.5)% +9.8% +9.3% 13% Consumer Products +18.1% +0.1% +18.2% 8% Marine & Offshore +4.4% +4.4% 8% Certification +24.0% +3
Slide 27: Marine & Offshore (7% of revenue)
Marine & Offshore (7% of revenue) KEY FINANCIALS Q3 2021 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2021 Q3 2020 Change • New Construction: a mid-single-digit decline, reflecting the slowdown in new orders intake in Mid-single-digit decline Revenue 92.3 89.3 +3.4% the prior year (notably in Asia, con
Slide 28: Agri-Food & Commodities (22% of revenue)
Agri-Food & Commodities (22% of revenue) KEY FINANCIALS Q3 2021 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2021 Q3 2020 Change • O&P: low single-digit organic growth overall due to higher fuel consumption. Growth in the Americas, Revenue Organic 273.1 252.5 +8.2% +7.7% the Middle East and Africa. Str
Slide 29: Industry (21% of revenue)
Industry (21% of revenue) KEY FINANCIALS Q3 2021 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2021 Q3 2020 Change • Oil & Gas: the performance further improved as many projects finally resumed; Opex-related Revenue 259.1 235.1 +10.2% activities grew double-digit organically, Power & Utilities Organic +
Slide 30: Buildings & Infrastructure (29% of revenue)
Buildings & Infrastructure (29% of revenue) KEY FINANCIALS Q3 2021 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2021 Q3 2020 Change Building In-Service (46% of divisional revenue): low single-digit organic growth Americas Revenue 357.0 327.6 +9.0% Organic +8.0% • Led by the US (strong momentum in proje
Slide 31: Certification (7% of revenue)
Certification (7% of revenue) KEY FINANCIALS Q3 2021 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2021 Q3 2020 Change • Slight organic growth against very challenging comparables following the catch-up in Q3 2020 Revenue Organic 92.4 88.5 +4.4% +0.8% of postponed audits and the success of new Sustainab
Slide 32: Consumer Products (14% of revenue)
Consumer Products (14% of revenue) KEY FINANCIALS Q3 2021 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS Q3 2021 Q3 2020 Change • Primarily led by a pick-up of activity in China, across most product categories Revenue 171.8 155.3 +10.6% Asia Organic +8.7% • Softlines: performed better than the divisional ma
Slide 33: Disciplined bolt-on M&A in 2021
Disciplined bolt-on M&A in 2021 RENEWABLE ENERGY CYBER & CONSUMER PRODUCTS UNITED STATES, MARCH NETHERLANDS, JANUARY €11m (additional revenue), c.€10m (additional revenue), 50 employees 100 employees • Provides owner's representation as well as construction and site • Secura provides security testin
Slide 34: Q3 2021 revenue by business
Q3 2021 revenue by business REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE Q3 2021 IN EUR MILLIONS €m Organic Scope Currency Marine & Offshore 92.3 +2.7% - +0.7% Marine & Offshore 14% 7% Agri-Food & Commodities Agri-Food & Commodities 273.1 +7.7% (0.3)% +0.8% 7% 22% Industry Industry 2
Slide 35: Q3 2021 revenue evolution by geography
Q3 2021 revenue evolution by geography REVENUE BY GEOGRAPHIC AREA (Q3 2021) REVENUE EVOLUTION BY NATURE (Q3 2021) Organic Scope +21.8% Asia Americas +0.6% Pacific 25% 32% +16.6% +21.2% Africa, +16.6% Middle +4.3% +0.2% East 9% Europe +0.4% +4.4% 34% (0.2)% (0.1)% Americas Europe Africa, Asia Pacific
Slide 36: 9M 2021 total revenue increase of 9.4%
9M 2021 total revenue increase of 9.4% REVENUE EVOLUTION VARIATION ANALYSIS 11.9% at constant currency 11.9% - 3,664.1 (2.5)% 3,348.8 9M 2020 Organic 1 Scope Currency 9M 2021 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentation Q3 20
Slide 37: 9M 2021 revenue by business
9M 2021 revenue by business REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE 9M 2021 IN EUR MILLIONS €m Organic Scope Currency Marine & Offshore 281.5 +4.4% - (1.8)% Marine & Offshore 13% 8% Agri-Food & Commodities Agri-Food & Commodities 791.1 +5.2% (0.1)% (2.3)% 8% 22% Industry Industr
Slide 38: 9M 2021 revenue evolution by geography
9M 2021 revenue evolution by geography REVENUE BY GEOGRAPHIC AREA (9M 2021) REVENUE EVOLUTION BY NATURE (9M 2021) Organic Scope +16.7% Asia Americas Pacific 24% +14.0% 31% +12.1% +8.4% +0.3% +16.8% +14.0% Africa, +12.2% Middle +8.1% East 9% Europe 36% (0.1)% (0.1)% Americas Europe Africa, Asia Pacif
Slide 39: Currency mix in 9M 2021
Currency mix in 9M 2021 REVENUE CURRENCY EXPOSURE CURRENCY CHANGE (YEAR ON YEAR) OTHER MXN 0.8% 10.9% USD (and pegged) (6.0)% VND 0.8% PEN 0.9% CNY +1.7% XOF 1.1% AUD +5.4% COP 1.1% EUR 29.9% KRW 1.2% CAD +1.7% SGD 1.3% GBP +2.5% INR 1.6% BRL (10.5)% TWD 1.6% CLP +2.1% JPY 2.0% JPY (6.9)% CLP 2.5% 9
Slide 40: 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 41: 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 42: 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 43: Ownership and market data at September 30, 2021
Ownership and market data at September 30, 2021 SHAREHOLDING STRUCTURE MARKET DATA 0.3% • Listed on Euronext-Paris • Ticker: BVI • ISIN: FR0006174348 Wendel group • IPO on October 2007: €9.44/share 35.5% • Share Price1: €26.71 Executive Committee & Employees • Market Cap.1: €12.1bn 63.2% • Main indi
Slide 44: Bureau Veritas - Shaping a World of Trust
BUREAU LVERITAS | VERITAS Shaping a World of Trust