Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — Investor Day (September 2011)
29 slides from Bureau Veritas Sa's investor day presentation, Sep 20, 2011
Slide 1: Bureau Veritas 2015 Strategic Plan
BUREAU VERITAS 2015 STRATEGIC PLAN Tuesday, September 20, 2011 1
Slide 2: Selected Business Highlights
SELECTED BUSINESS HIGHLIGHTS 2
Slide 3: Focus on Industry: Leading the Way
FOCUS ON INDUSTRY LEADING THE WAY Laurent Clavel Executive Vice President, Industry 3
Slide 4: Industry: Our mission
Industry : Our mission Managing risks and Ensuring Safety, Quality and Reliability of Industrial Assets… © - Copyright Bureau Veritas 4
Slide 5: Industry: Our services along the lifecycle
Industry : Our services … Along all their Lifecycle 1 Feasibility Decommissioning 7 Definition of standards and specifications Risk analysis Technical studies Operational safety Conformity assessment 2 Design Process Hazard Analysis OPEX CAPEX Modification 6 ~1/3 ~2/3 Risk assessment
Slide 6: Our clients: 3 strategic markets
Our clients : 3 strategic markets, ~2/3 of Bureau Veritas Industry revenues Oil & Gas (~1/3) Power Process Onshore Offshore Drilling Fossil Nuclear Wind Chemicals Mining E&P E&P LNG Refineries Distribution Solar Hydraulic Utilities Pharma Food ► Serving a broad customer base of industry players As
Slide 7: Our production model: 3 core capabilities
Our production model : 3 core capabilities mixed in our services Examples of IPA AIM IPC customized offerings (Industrial Project (Asset Integrity (Industrial Product Assistance) Management) Certification) Inspection Services : Equipment, Shop & site inspections. Project Installation Inspection. Ope
Slide 8: A comprehensive and balanced network consolidated over 2006-2011
A comprehensive and balanced network consolidated over 2006-2011 Mature Fast-growing economies economies % of 2010 revenues 41% 59% 2009-2011 : China / South East Asia 2008 : Chile 2007 : Australia © - Copyright Bureau Veritas 8
Slide 9: Selected case studies
Selected case studies ARCTIC OFFSHORE PROJECT POWER STATIONS : AFRICA ► Client: Global O&G Operator ► Client: African Electricity Company ► Mission: Third Party Verification ► Mission: Quality Control for 2 coal-fired power stations projects (6 x 800 MW ► Duration: 4 years started Mid 2010 each): In
Slide 10: Industry: Attractive and strategic market for Bureau Veritas
Industry : Attractive and strategic market for Bureau Veritas ► €15bn addressable market size, estimated to reach over Large and sound €20bn in 2015 (1) ► High share of repeat business ► Global network ► Clients’ stringent conditions High and increasing ► Brand / reputation ► Technical expertise bar
Slide 11: Mixing both global and local activities
Mixing both global and local activities Global Missions… … Local Services ► International standards or key ► Country requirements accounts’ requirements ► Local customers with specific ► Global accreditations requirements ► Central organization ► Pricing, scope and reporting adapted to each local ma
Slide 12: From a growth engine to a profitable growth operation
From a “growth” engine to a “profitable growth” Operation Share in Group revenues 2015 (%) 2011 2006 Adjusted operating margin (%) 2007- 2011 ACHIEVEMENTS (1) 2015 AMBITION ► +25% revenues CAGR ► Strong organic growth ► +15% avg organic growth ► +11% acquisitions ► Acquisitions ► Stable profitabilit
Slide 13: 3 growth priorities for 2015
3 growth priorities for 2015 Markets Network Services ► Oil & Gas: moving upstream ► Filling the geographical ► Strengthening Industry Drilling matrix showcase offerings Offshore Germany, UK, USA Dedicated sales force LNG Australia, China, Argentina, Chile, Packaged One-source Services
Slide 14: 3 levers to improve Industry profitability
3 levers to improve Industry profitability ► Increase in share of high value added services Mix (offshore, nuclear, asset integrity management) ► Increase in share of revenues in fast growing countries ► Value pricing strategy in niche markets Pricing ► Contract management ► New production tools Eff
Slide 15: Leading the way
Leading the way ►Leadership position of Bureau Veritas in the Industry market Technical expertise and global footprint Confidence and Intimacy established with giant global companies of the Energy and Process markets ►A large and attractive market Structural drivers: People safety, Environment
Slide 16: Focus on Commodities: Tapping into Global Potential
FOCUS ON COMMODITIES TAPPING INTO GLOBAL POTENTIAL Neil Hopkins Executive Vice President, Commodities 16
Slide 17: New business, global leadership
New business, global leadership 2007 2008 2009 2010 2011 Una Empresa Bureau Veritas Coal inspection Leader in and testing in geoanalytical and Sample preparation and Global provider of Bureau Veritas Australia mineral processing geoanalytical testing (minerals) Coal testing in commodities new testin
Slide 18: Full range of services across the commodities value chain
Full range of services across the commodities value chain ► Sample preparation Upstream ► Geochemical testing Minerals Exploration/ 50% of revenues ► Mineral processing testing production ► Crude oil assay coal, ferrous metals, non ferrous metals, precious metals, steel raw materials ► Supervision o
Slide 19: A large network, with room for further expansion
A large network, with room for further expansion Oil & Petrochemicals laboratories Metals and Minerals laboratories Agri & others © - Copyright Bureau Veritas 19
Slide 20: Global blue-chip customers
Global blue-chip customers, being leveraged across multiple initiatives ► Longstanding relationships with oil Blue chip customer base majors, Australian mining companies, and commodity trading companies ► Customer base being leveraged for increased penetration, especially in the fastest growing zone
Slide 21: An attractive and growing market
An attractive and growing market ► > €5bn addressable market ► Strong growth outlook, driven by ► High and increasing barriers to entry Shift in world oil consumption growth, driven by fast-growing ► Market concentration around 3 top global countries’ demand players Tighter regulations Mineral
Slide 22: BV2015 Commodities ambition
BV2015 Commodities ambition Aligning profitability with Delivering strong top-line growth best-in class players Leverage existing business Key accounts and Expand service Shifting service mix network offering across all towards more lab testing optimization geographies Increased lab utilization Use
Slide 23: African network synergies to further develop Coal
African network synergies to further develop Coal Leveraging combined capabilities in Africa for joint commercial successes ► Coal superintending services for Richards Bay Coal Terminal Richards Bay ► Major borecore wins Key coal export hub with significant coal potential ► 12 mine site labs ► Large
Slide 24: Cross-selling opportunities with Marine business
Cross-selling opportunities with Marine business Annual bunker volumes ► Joint Marine / Commodities marketing (million tons per year) approach to develop bunker fuel testing services for ship owners and ship operators ► Limited existing competition ► Top 3 locations: Singapore, Fujairah and Rotterda
Slide 25: Ambitious capex plan
Ambitious capex plan BV2015 commodities capex targeting primarily ► Geographic expansion projects in under-represented countries (Africa, Asia) ► Capability expansion projects in key locations (USA, South America, Pacific, Eastern Europe) ► New labs and existing labs upgrade ► Oil&Petrochemicals, Mi
Slide 26: Leverage USA lab platform to develop new services
Leverage USA lab platform to develop new services ► Move ‘in-land’ to capture non-marine opportunities ► Increased footprint in petrochemicals ► Outsourcing contracts with non-traditional customer base ► Biofuels ► Metering ► Additives ► Upstream © - Copyright Bureau Veritas 26
Slide 27: Shifting service mix towards more lab testing
Shifting service mix towards more lab testing Replicating USA precedent to other regions USA Oil&Petrochemicals – 2008-2010 ► +3% shift to lab testing ► +9% increase in revenue per job ► +8% increase in gross margin Lab Lab Inspection Inspection testing testing 50% 47% 50% 53% Outside the USA, < 1/3
Slide 28: Wrap up
Wrap up ► Bureau Veritas a new leading player in commodities ► €5bn global market driven by favourable growth trends and expansion opportunities ► Ideally positioned and prepared to capture new growth opportunities and align performance with best in class competitors Share in 2015 Group revenues (%)
Slide 29: Bureau Veritas 2015 Strategic Plan
BUREAU VERITAS 2015 STRATEGIC PLAN Tuesday, September 20, 2011 29