Bureau Veritas Sa · EURONEXT:BVI
Bureau Veritas Sa — FY2020 Earnings Presentation
89 slides from Bureau Veritas Sa's earnings presentation, Feb 25, 2021
Slide 1: Full Year 2020 Results
FULL YEAR 2020 RESULTS FEBRUARY 25, 2021
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: Highlights
HIGHLIGHTS
Slide 4: Agenda
Agenda HIGHLIGHTS FINANCIAL REVIEW OUTLOOK STRATEGIC FOCUS ON SUSTAINABILITY CSR 2025 STRATEGIC PLAN Q&A APPENDIX
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 health and safety of all Bureau Veritas employees Accompany our clients in managing their risks and restarting their operations Protect the financial solidity of the Group OUR TEAMS REMAIN HIGHLY MOBILIZED
Slide 6: FY 2020 financial highlights
FY 2020 financial highlights • Total revenue decline of 9.8% with -7.4% in Q4 GROUP REVENUE €4.6bn • Organic revenue decline of 6.0% with -2.0% in Q4 • Negative external growth of 0.4% with -0.4% in Q4 (9.8)% y/y • Negative currency impact of 3.4% with -5.0% in Q4 ADJUSTED OPERATING €615m • Adjusted
Slide 7: Lessons learned from Covid-19 crisis: agility, discipline and innovation
Lessons learned from Covid-19 crisis: agility, discipline and innovation Portfolio diversification ensures overall resilience Drastic cost reduction measures protecting the margin Strong performance on cash thanks to optimization measures Acceleration of existing trends: supply chain management, dig
Slide 8: Financial Review
BUREAU VERITAS FINANCIAL REVIEW
Slide 9: Bureau Veritas posting a resilient full-year 2020 revenue
Bureau Veritas posting a resilient full-year 2020 revenue FY 2020 PORTFOLIO SPLIT IN PERCENTAGE OF GROUP REVENUE KEY 2020 HIGHLIGHTS Marine & Offshore Marine & Offshore • Resilient business with very limited disruption +2.2 % Buildings & Infrastructure, organic growth in FY 2020 8% Agri-Food & Commo
Slide 10: Nearly half of the Group's portfolio is growing organically in Q4 2020
Nearly half of the Group’s portfolio is growing organically in Q4 2020 Q4 2020 PORTFOLIO SPLIT IN PERCENTAGE OF DIVISIONAL REVENUE SEQUENTIAL IMPROVEMENT ORGANIC GROWTH Low single-digit organic growth for nearly half of the Group’s portfolio (2.0)% (1.2)% A BALANCED 46% • Continuing strong recovery
Slide 11: Bureau Veritas protected margin, enhanced cash generation while reducing its net debt
Bureau Veritas protected margin, enhanced cash generation while reducing its net debt SIGNIFICANT COST REDUCTION VERY STRONG CASH GENERATION WORKING CAPITAL REQUIREMENT ON REVENUE RATIO 10.0% 9.7%(1) 9.0% 8.8% Personnel costs + Other costs Dec. 2016 Dec. 2017 Dec. 2018 Dec. 2019 6.1% Dec. 2020 • Str
Slide 12: FY 2020 total revenue decline of 9.8%
FY 2020 total revenue decline of 9.8% REVENUE EVOLUTION VARIATION ANALYSIS (6.4)% at constant currency 5,099.7 4,601.0 (6.0)% (0.4)% (3.4)% FY 2019 Organic 1 Scope Currency FY 2020 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentation
Slide 13: FY 2020 revenue growth by business
FY 2020 revenue growth by business % of @ constant revenue currency 29% Buildings & Infrastructure (1.5)% (1.7)% (3.2)% 22% Agri-Food & Commodities (7.4)% +0.1% (7.3)% 21% Industry (0.4)% (6.6)% (7.0)% 13% Consumer Products (15.0)% +0.1% (14.9)% 8% Marine & Offshore +2.2% +2.2% 7% Certification (6.2
Slide 14: Q4 2020 revenue growth by business
Q4 2020 revenue growth by business % of @ constant revenue currency 30% Buildings & Infrastructure (0.7)% +2.8% +2.1% 21% Agri-Food & Commodities (6.9)% (6.9)% 20% Industry (0.9)% (4.5)% (5.4)% 13% Consumer Products (8.1)% +0.1% (8.0)% 9% Certification +10.7% +10.7% 7% Marine & Offshore +0.3% +0.3%
Slide 15: Consumer Products' diversification strategy well underway
Consumer Products’ diversification strategy well underway despite a challenging business environment FY 2020 PORTFOLIO SPLIT IN PERCENTAGE OF DIVISIONAL REVENUE DIVERSIFICATION WELL UNDERWAY Network & Footprint 33% • Network streamlining, notably in China Topline affected (down 15.0% in FY 2020) but
Slide 16: Active portfolio management in 2020, resumption of disciplined M&A in 2021
Active portfolio management in 2020, resumption of disciplined M&A in 2021 RESUMPTION OF M&A ACTIVITY ACTIVE PORTFOLIO MANAGEMENT NETHERLANDS, JANUARY Disposal of the Emissions Monitoring c.€10m (additional revenue), 100 employees business in the US (USD 12m revenue in 2019) • Secura provides securi
Slide 17: FY 2020 key financial metrics
FY 2020 key financial metrics FINANCIAL HIGHLIGHTS Change Change IN EUR MILLIONS FY 2020 FY 2019 y/y at constant y/y currency Revenue 4,601.0 5,099.7 (9.8)% (6.4)% Adjusted operating profit1 615.0 831.5 (26.0)% (21.9)% Adjusted operating margin1 13.4% 16.3% (294)bps (271)bps Operating profit 407.4 7
Slide 18: Adjusted operating margin (1/2)
Adjusted operating margin (1/2) GROUP MARGIN EVOLUTION (271)bps at constant currency +7bps 16.3% (278)bps (23)bps 13.6% 13.4% FY 2019 Organic 1 Scope Margin at Currency FY 2020 constant (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this present
Slide 19: Adjusted operating margin (2/2)
Adjusted operating margin (2/2) GROUP MARGIN EVOLUTION Total Organic Scope Currency FY 2020 H2 2020 H1 2020 FY 2019 change y/y (bp) y/y (bp) y/y (bp) y/y (bp) Marine & Offshore 21.9% 20.8% 23.1% 22.1% (19) +55 - (74) Agri-Food & Commodities 12.1% 12.5% 11.8% 13.8% (168) (119) (15) (34) Industry 11.2
Slide 20: From adjusted operating profit to operating profit
From adjusted operating profit to operating profit ADJUSTMENT ITEMS Change IN EUR MILLIONS FY 2020 FY 2019 y/y Depreciation of intangible assets Adjusted operating profit 615.0 831.5 (26.0)% Amortization of intangible assets Asset write-offs related to labs (132.8) (79.8) +66.4% resulting from acqui
Slide 21: Net financial expense
Net financial expense FINANCIAL RESULT Change IN EUR MILLIONS FY 2020 FY 2019 y/y Finance costs, net (108.2) (100.2) +8.0% Increase Foreign exchange gains/(losses) (22.2) (10.0) +122.0% in the average debt and increase in costs Interest cost on pension plans (2.9) (4.4) (34.1)% due to the early repa
Slide 22: Tax / Tax rate
Tax / Tax rate ADJUSTED EFFECTIVE TAX RATE EVOLUTION Change IN EUR MILLIONS FY 2020 FY 2019 y/y Increase mainly due to the Profit before Tax 269.7 603.3 (55.3)% weight of taxes not Income tax expense (130.8) (210.7) (37.9)% directly calculated by reference to taxable Effective Tax Rate (ETR) 48.5% 3
Slide 23: Cash flow statement
Cash flow statement STRONG CASH IMPROVEMENT Change IN EUR MILLIONS FY 2020 FY 2019 y/y Profit before income tax 269.7 603.3 (55.3)% Elimination of cash flows from financing 140.1 134.9 +3.9% Solid performance from the and investing activities operating cash flow, up 2.3% Provisions and other non-cas
Slide 24: Improving working capital requirement ratio
Improving working capital requirement ratio WORKING CAPITAL REQUIREMENT / REVENUE RATIO MOVE FOR CASH STILL BEING DEPLOYED Cash collection remains the number one priority • Optimize invoice to cash process 10.0% 9.7%(1) • Acceleration of invoicing and cash collection across the Group 9.0% 8.8% • Cas
Slide 25: Leverage ratio reduced at 1.8x despite the Covid-19 shock
Leverage ratio reduced at 1.8x despite the Covid-19 shock ADJUSTED NET DEBT EVOLUTION DEBT MATURITY PROFILE AS OF DEC. 31, 2020 IN EUR MILLIONS Repaid on January 21,2021 663 Free Lease Dec. 31, Other Dec. 31, cash Acquis. Dividends payments 543 2019 (incl. FX) 2020 flow (IFRS 16) 500 500 (18.0) (31.
Slide 26: Strategic Focus on Sustainability
STRATEGIC FOCUS ON SUSTAINABILITY
Slide 27: Powerful megatrends are supporting the development of the TIC sector
Powerful megatrends are supporting the development of the TIC sector RISING INTERNATIONAL NEW SUSTAINABLE HEALTH AND POPULATION TRADE TECHNOLOGIES WORLD HYGIENE Urbanization growth Supply chains Further acceleration Increased focus Health & Hygiene unchanged reconfiguration of digitalization on ESG
Slide 28: Sustainability has become a central factor for most public and private organizations
Sustainability has become a central factor for most public and private organizations RISING INTERNATIONAL NEW SUSTAINABLE HEALTH AND POPULATION TRADE TECHNOLOGIES WORLD HYGIENE Urbanization growth Supply chains Further acceleration Increased focus Health & Hygiene unchanged reconfiguration of digita
Slide 29: Bureau Veritas well positioned to benefit from accelerating sustainability concerns
Bureau Veritas well positioned to benefit from accelerating sustainability concerns Reinforced INTERNAL STRATEGY & ACTION PLAN stakeholders’ expectations • Ambition to become an industry leader, supported by our “Shaping a Better World” CSR plan through 2025 Increasing regulations EXTERNAL POSITIONI
Slide 30: 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 31: Supporting the acceleration towards renewable energy
Supporting the acceleration towards renewable energy BUREAU VERITAS AIMS TO SUPPORT MAJOR POWER RENEWABLES DEVELOPMENT PLAYERS WORLDWIDE IN THE ENERGY TRANSITION IN GW INSTALLED CAPACITY A comprehensive expertise to support the power industry • Expertise in improving the safety and performance Wind
Slide 32: Fast growing trend on New Sustainable Energy Source - Hydrogen
Fast growing trend on New Sustainable Energy Source - Hydrogen BUREAU VERITAS AIMS AT SUPPORTING THE HYDROGEN DEVELOPMENT DECARBONISATION OF ALL ENERGY END-USE SECTORS MARKET DATA A comprehensive expertise along complete Hydrogen value chain • Expertise in de-risking, safety assessment and performan
Slide 33: Helping the energy majors to transition to a low-carbon future
Helping the energy majors to transition to a low-carbon future BUREAU VERITAS PRIVILEGED PARTNER OF THE O&G ENERGY TRANSITION IN O&G INDUSTRY IN TRANSITION TOWARD MULTI-ENERGY MIX INDUSTRY MARKET DATA Addressing the impact on climate : Net-Zero Emission • Expertise on “Net Zero emission” : assessmen
Slide 34: A move on the rise for decarbonization of the shipping industry
A move on the rise for decarbonization of the shipping industry BUREAU VERITAS RANKS #1 IN LNG FUELED SHIPS GROWTH EXPECTED TO PICK-UP IN MEDIUM-LONG TERM World class expertise to support sustainable shipping • From design review, throughout the building phase and the LNG Capable Fleet Development o
Slide 35: Rising trends for Food supply chain safety and traceability
Rising trends for Food supply chain safety and traceability BUREAU VERITAS AIMS AT BUILDING TRUST FOOD SAFETY MARKET DATA IN THE FOOD SAFETY SECTOR IN BILLIONS OF US DOLLARS A comprehensive expertise to support the seafood industry • 30+ years of experience in 25 countries supporting clients across
Slide 36: A critical need for reliable and resilient EV Charging Stations infrastructure
A critical need for reliable and resilient Electric Vehicle Charging Stations (EVCS) infrastructure ‘CHARGESCAN BY BV’: A COMPLETE PORTFOLIO OF SERVICES SUSTAINED NEED FOR CHARGERS DEDICATED TO EVCS IN MILLIONS OF CHARGERS Covering the full asset lifecycle: from site assessment, design, construction
Slide 37: The advent of new mobility: an opportunity for Consumer Products
The advent of new mobility: an opportunity to support the development of the Consumer Products activity BUREAU VERITAS AIMS AT BEING A LEADER IN NEW MOBILITY SOLUTIONS EV: A FAST GROWING MARKET Connected car IN MILLIONS OF VEHICLES Reinforcing current organization 140 (Infotainment/ 5G/ V2X) to full
Slide 38: Fast growing trend on Sustainability Assurance
Fast growing trend on Sustainability Assurance BUREAU VERITAS AIMS AT BEING THE SUSTAINABILITY MARKET DATA SUSTAINABILITY ASSURANCE LEADER IN TRILLIONS OF US DOLLARS Comprehensive expertise in Sustainability solutions c.16% • Expertise in independent verification to improve visibility CAGR 130 and r
Slide 39: CSR 2025 Strategic Plan
CSR 2025 STRATEGIC PLAN
Slide 40: 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 Environment Governance pillars FULL YEAR 2020 RESULTS 40
Slide 41: 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 42: Outlook
OUTLOOK
Slide 43: 2021 Outlook
Option 2 2021 Outlook The Group remains uniquely positioned with the diversity, the resilience of its portfolio and its numerous growth opportunities. Based on the current uncertainties around the Covid-19 pandemic and assuming no severe lockdowns in its main countries of operation, Bureau Veritas e
Slide 44: Agility, innovation and discipline
Agility, innovation and discipline Health & Safety is an absolute at Bureau Veritas Remarkable resilience 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 2025 and beyond
Slide 45: Q&A
Te28, BUREAU VERITAS Q&A
Slide 46: 2021 Financial Calendar & Contacts
2021 Financial Calendar & Contacts 2021 AGENDA INVESTOR RELATIONS DEPARTMENT Q1 2021 revenue: April 22, 2021 BUREAU VERITAS HEAD OFFICE – 40/52 BOULEVARD DU PARC Shareholders’ meeting: June 25, 2021 92200 NEUILLY-SUR-SEINE, FRANCE H1 2021 results: July 28, 2021 Laurent Brunelle Head of Investor Rela
Slide 47: Appendix
Te28 BUREAU VERITAS APPENDIX
Slide 48: Bureau Veritas aims to be the leader in non-financial ratings
Bureau Veritas aims to be the leader in non-financial ratings MAIN RATINGS TO NURTURE REPUTATION WITH CLIENTS AND TRUST WITH INVESTORS S&P Global Sustainability Low risk Yearbook 2021 ranked 1st Robust (Professional services) amongst rating Dated February 2021 TIC companies Dated February 2020 Gold
Slide 49: 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 50: As a Business to Business to Society company, committed to tackling pressing challenges
As a “Business to Business to Society” company, Bureau Veritas is committed to tackling the world’s most pressing challenges SUPPORTING OUR CLIENTS IN MEETING THEIR SUSTAINABILITY COMMITMENTS IS OUR DNA Our mission is to reduce our clients' risks, improve their performance and help them innovate to
Slide 51: Strong macro drivers will reinforce current trends and create incremental opportunities
Strong macro drivers will reinforce current trends and create incremental opportunities SUPPLY CHAIN EUROPEAN ENERGY GREEN TRANSITION MANAGEMENT DEAL NEED FOR BETTER SUPPLY 11 TOPICS TO BE CARBON 16 TERAWATT OF RENEWABLES CHAIN RISK MANAGEMENT NEUTRAL IN 2050 TO BE ADDED TO GLOBAL TO BECOME MORE FLE
Slide 52: Sustainability index to track execution of CSR strategy
Bureau Veritas has developped a sustainability index to track the execution of its CSR strategy across the entire organization Index calculated HUMAN GREEN ETHICAL TRADE once a year based on 6 audit packages with 1. Social 3. Environment 5. Responsible sourcing & Biodiversity 9 sustainability module
Slide 53: Bureau Veritas' CSR 2025 ambition
Bureau Veritas’ CSR 2025 ambition 17 KEY INDICATORS IN TOTAL WITH A 2025 AMBITION, OF WHICH 5 WILL BE COMMUNICATED ON A QUARTERLY BASIS SOCIAL & HUMAN CAPITAL ENVIRONMENT GOVERNANCE Safety is an “absolute” Achieve 2 tons of CO2 emissions Reach 99% of employees Achieve 0.26 accident rate (TAR) per em
Slide 54: Restart Your Business with BV
Restart Your Business with BV is a suite of solutions to meet the needs of all sectors of the economy as they reopen for business Accompany clients in restarting their operations as quickly as possible with appropriate Health, Safety and Hygiene conditions Safe working End-consumers Consistent Compl
Slide 55: Addressing all business segments with a global presence
Bureau Veritas is addressing all business segments with a global presence thanks to its unparalleled network of inspectors and auditors B2B2C Provide reassurance to the end-consumer HOSPITALITY BANKS RETAIL MALLS RESTAURANTS LEISURE B2B PRIVATE Verify that protective measures are properly implemente
Slide 56: Restart Your Business with BV is a fully digital process
Restart Your Business with BV is a fully digital process with a two-fold approach Audit Visibility TECHNICAL SCOPE Bureau Veritas checklists were developed by a Group of Health, Safety and Hygiene Experts based on Global most recognized Best Practices and Recommendations related to Preventive • Read
Slide 57: A tailor-made approach to solve a complex problem in a simple way
A tailor-made approach to solve a complex problem in a simple way DEFINE THE LIST OF CONDUCT GRANT ONE SINGLE CONTROL POINTS THE AUDIT THE LABEL REPOSITORY The client can either Global coverage with Possibility to use All the results of Bureau Veritas use Bureau Veritas’ possibility to conduct both
Slide 58: Restart Your Business with BV: an end-to-end digital platform
Restart Your Business with BV: an end-to-end digital platform AN EXECUTIVE DASHBOARD TO MANAGE THE LEVEL A TRACEABILITY PORTAL TO GIVE VISIBILITY ON THE OF COMPLIANCE OF THE CLIENT’S NETWORK GRANTED LABELS • Real-time visibility of client’s sites: compliance monitoring • Open Web Portal to promote t
Slide 59: Marine & Offshore (8% of revenue, 13% of profit)
Marine & Offshore (8% of revenue, 13% of profit) KEY FINANCIALS FY 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS FY 2020 FY 2019 Change • Resilient performance overall as the Group continued to deliver “essential services” which High single-digit growth Revenue 366.7 368.5 (0.5)% ensure business conti
Slide 60: Agri-Food & Commodities (22% of revenue, 20% of profit)
Agri-Food & Commodities (22% of revenue, 20% of profit) KEY FINANCIALS FY 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS FY 2020 FY 2019 Change • O&P: double-digit organic decline; Slowdown in demand for TIC services in Revenue Organic 1,029.6 1,168.2 (11.9)% (7.4)% the Group’s main markets on lower fu
Slide 61: Industry (21% of revenue, 18% of profit)
Industry (21% of revenue, 18% of profit) KEY FINANCIALS FY 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS FY 2020 FY 2019 Change • Opex-related activities (65% of divisional revenue) showed their resiliency with ensuring Revenue 965.6 1,111.1 (13.1)% the continuity of services being “business OPEX P&U
Slide 62: Buildings & Infrastructure (29% of revenue, 23% of profit)
Buildings & Infrastructure (29% of revenue, 23% of profit) KEY FINANCIALS FY 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS FY 2020 FY 2019 Change Building In-Service (60% of divisional revenue): solid organic growth France Revenue 1,314.1 1,379.2 (4.7)% Organic (1.7)% • Led by France (healthy backlog
Slide 63: Certification (7% of revenue, 9% of profit)
Certification (7% of revenue, 9% of profit) KEY FINANCIALS FY 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS FY 2020 FY 2019 Change • Mixed year with a strong pick up in H2 (up 9.0% including 10.7% in the fourth quarter), partly Revenue Organic 339.6 370.5 (8.3)% (6.2)% offsetting the severe decline ex
Slide 64: Consumer Products (13% of revenue, 17% of profit)
Consumer Products (13% of revenue, 17% of profit) KEY FINANCIALS FY 2020 HIGHLIGHTS KEY FIGURES IN EUR MILLIONS FY 2020 FY 2019 Change • Activity impacted by the Covid-19 crisis and the associated general lockdowns observed in Revenue 585.4 702.2 (16.6)% multiple countries, starting in China in Q1 2
Slide 65: Portfolio of business
Portfolio of business REVENUE BY BUSINESS ADJUSTED OPERATING PROFIT Marine & Offshore Marine & Offshore 13% 8% 13% 17% Agri-Food & Commodities Agri-Food & Commodities 7% 22% Industry 9% Industry 20% FY 2020 FY 2020 Buildings & Infrastructure Buildings & Infrastructure 29% Certification Certification
Slide 66: FY 2020 revenue by business
FY 2020 revenue by business REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE FY 2020 IN EUR MILLIONS €m Organic Scope Currency Marine & Offshore 366.7 +2.2% - (2.7)% Marine & Offshore 13% 8% Agri-Food & Commodities Agri-Food & Commodities 1,029.6 (7.4)% +0.1% (4.6)% 7% 22% Industry Indus
Slide 67: FY 2020 revenue evolution by geography
FY 2020 revenue evolution by geography REVENUE BY GEOGRAPHIC AREA (FY 2020) REVENUE EVOLUTION BY NATURE (FY 2020) Organic growth Acquisition growth Asia Americas 23% +0.4% Pacific 31% (1.4)% (0.8)% (7.6)% (8.5)% (8.5)% Africa, Middle East 9% Europe 37% (1.0)% (9.5)% (2.2)% (7.6)% (8.1)% Americas Eur
Slide 68: Q4 2020 total revenue decline of 7.4%
Q4 2020 total revenue decline of 7.4% REVENUE EVOLUTION (2.4)% at constant currency 1,352.4 1,252.2 (2.0)% (0.4)% (5.0)% Q4 2019 Organic 1 Scope Currency Q4 2020 (1) Alternative performance indicators are presented, defined and reconciled with IFRS in appendix of this presentation FULL YEAR 2020 RES
Slide 69: Q4 2020 revenue by business
Q4 2020 revenue by business REVENUE AND YEAR-ON-YEAR REVENUE GROWTH BREAKDOWN OF REVENUE Q4 2020 IN EUR MILLIONS €m Organic Scope Currency Marine & Offshore 92.4 +0.3% - (4.3)% Marine & Offshore 13% 7% Agri-Food & Commodities Agri-Food & Commodities 260.0 (6.9)% - (6.6)% 21% 9% Industry Industry 256
Slide 70: Q4 2020 revenue evolution by geography
Q4 2020 revenue evolution by geography REVENUE BY GEOGRAPHIC AREA (Q4 2020) REVENUE EVOLUTION BY NATURE (Q4 2020) Organic growth Acquisition growth Americas Asia 22% Pacific +3.1% 31% +0.3% (0.9)% (3.9)% (5.1)% Africa, (7.7)% Middle East 8% (0.7)% Europe 39% (5.8)% +2.2% (7.7)% (3.6)% Americas Europ
Slide 71: Adjusted Operating Profit by business
Adjusted Operating Profit by business Adjusted operating profit (€m) Adjusted operating margin (%) Change Change IN EUR MILLIONS FY 2020 FY 2019 FY 2020 FY 2019 (%) (bp) Marine & Offshore 80.4 81.5 (1.3)% 21.9% 22.1% (19) Agri-Food & Commodities 125.0 161.4 (22.6)% 12.1% 13.8% (168) Industry 108.0 1
Slide 72: Consolidated income statement
Consolidated income statement IN EUR MILLIONS FY 2020 FY 2019 Revenue 4,601.0 5,099.7 Purchase and external charges (1,350.3) (1,438.3) Personnel costs (2,343.5) (2,596.8) Taxes other than on income (45.0) (45.8) Net (additions to) / reversals of provisions (72.5) (9.2) Depreciation and amortization
Slide 73: Consolidated statement of financial position (1/2)
Consolidated statement of financial position (1/2) IN EUR MILLIONS DEC. 31, 2020 DEC. 31, 2019 Goodwill 1,942.9 2,075.1 Intangible assets 427.3 611.1 Property, plant and equipment 348.8 444.9 Right-of-use assets 375.7 369.0 Non-current financial assets 105.7 118.3 Deferred income tax assets 136.6 13
Slide 74: Consolidated statement of financial position (2/2)
Consolidated statement of financial position (2/2) IN EUR MILLIONS DEC. 31, 2020 DEC. 31, 2019 Share capital 54.2 54.2 Retained earnings and other reserves 1,183.8 1,209.6 Equity attributable to shareholders of the Company 1,238.0 1,263.8 Non-controlling interests 47.7 58.3 Total equity 1,285.7 1,32
Slide 75: Consolidated statement of cash flow (1/2)
Consolidated statement of cash flow (1/2) IN EUR MILLIONS FY 2020 FY 2019 Profit before income tax 269.7 603.3 Elimination of cash flows from financing and investing activities 140.1 134.9 Provisions and other non-cash items 48.7 (13.4) Depreciation, amortization and impairment 362.9 305.2 Movements
Slide 76: Consolidated statement of cash flow (2/2)
Consolidated statement of cash flow (2/2) IN EUR MILLIONS FY 2020 FY 2019 Capital increase 2.7 3.1 Purchases / sale of treasury shares 8.8 14.5 Dividends paid (31.8) (97.3) Increase in borrowings and other debt 790.5 719.9 Repayments of borrowings and other debt (1,123.5) (608.5) Repayments of amoun
Slide 77: Adjusted net financial debt
Adjusted net financial debt IN EUR MILLIONS DEC. 31, 2020 DEC. 31, 2019 Bank borrowings due after one year (2,376.2) (2,918.5) Bank borrowings due within one year (543.0) (356.9) Bank overdrafts (7.5) (12.1) Gross financial debt (2,926.7) (3,287.5) Total cash and cash equivalents 1,594.5 1,477.8 Net
Slide 78: Earnings per share
Earnings per share IN EUR MILLIONS FY 2020 FY 2019 FY 2018 Basic EPS 0.28 0.83 0.76 Basic adjusted EPS 0.64 1.02 0.96 Weighted average number of shares 448,616,542 442,259,428 435,786,895 Diluted EPS 0.28 0.83 0.76 Diluted adjusted EPS 0.63 1.01 0.95 Weighted average number of shares for diluted 452
Slide 79: FY 2020 restructuring: €26.5 million
FY 2020 restructuring: €26.5 million BY BUSINESS BY GEOGRAPHY 7% 13% Marine & Offshore 37% 22% Europe Agri-Food & Commodities Industry Africa, Middle East 49% Asia Pacific Buildings & Infrastructure 38% Americas Certification 15% Consumer Products 5% 14% FULL YEAR 2020 RESULTS 79
Slide 80: Currency mix in FY 2020
Currency mix in FY 2020 REVENUE CURRENCY EXPOSURE CURRENCY CHANGE (YEAR ON YEAR) OTHER 11.9% USD (and pegged) (2.0)% VND 0.9% RUB 0.9% CNY (1.8)% XOF 1.0% AUD (2.7)% COP 1.1% EUR 30.4% CAD (2.9)% KRW 1.3% SGD 1.5% GBP (1.3)% INR 1.5% BRL (25.1)% TWD 1.5% CLP (12.8)% JPY 2.2% JPY +0.1% CLP 2.4% FY 20
Slide 81: 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, 2020 DEBT BREAKDOWN Repaid on January 21, 2021 Bond 2% 2% 0.2% 163 43 USPP China Loan 21% Bond Other USPP Fixed rate China Loan Floating rate Other 500 500 500 500 75% 99.8% 200 163 163 126 68
Slide 82: Definition of alternative performance indicators and reconciliation with IFRS (1/5)
Definition of alternative performance indicators and reconciliation with IFRS (1/5) 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 83: Definition of alternative performance indicators and reconciliation with IFRS (2/5)
Definition of alternative performance indicators and reconciliation with IFRS (2/5) 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 84: Definition of alternative performance indicators and reconciliation with IFRS (3/5)
Definition of alternative performance indicators and reconciliation with IFRS (3/5) Adjusted operating profit and adjusted operating margin are key indicators Since a measurement period of 12 months is allowed for determining the fair used to measure the performance of the business, excluding materi
Slide 85: Definition of alternative performance indicators and reconciliation with IFRS (4/5)
Definition of alternative performance indicators and reconciliation with IFRS (4/5) ADJUSTED EFFECTIVE TAX RATE FREE CASH FLOW The effective tax rate (ETR) represents income tax expense divided by the Free cash flow represents net cash generated from operating activities amount of pre-tax profit. (o
Slide 86: Definition of alternative performance indicators and reconciliation with IFRS (5/5)
Definition of alternative performance indicators and reconciliation with IFRS (5/5) FINANCIAL DEBT CONSOLIDATED EBITDA Gross debt (or gross finance costs/financial debt) represent bank loans and Consolidated EBITDA represents net profit before interest, tax, depreciation, borrowings plus bank overdr
Slide 87: 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 88: Ownership and market data at December 31, 2020
Ownership and market data at December 31, 2020 STABLE SHAREHOLDING STRUCTURE MARKET DATA 0.6% • Listed on Euronext-Paris • Ticker: BVI • ISIN: FR0006174348 Wendel group • IPO on October 2007: €9.44/share 35.6% • Share Price1: €21.76 Executive Committee & Employees • Market Cap.1: €9.8bn 62.9% • Main
Slide 89: BUREAU
BUREAU |BUREAU | Shaping a World of Trust