Arcadis NV · EURONEXT:ARCAD
Arcadis NV — Q2 & HY 2021 Earnings Presentation
31 slides from Arcadis NV's earnings presentation, Jul 29, 2021
Slide 1: Accelerated organic revenue growth, further margin and backlog improvement
Accelerated organic revenue growth, further margin and backlog improvement Arcadis Q2 & HY 2021 Results 29th July, 2021 Image Credit: HS2 Ltd
Slide 2: Creating sustainable mobility
Creating sustainable mobility. Delivering net zero carbon rail station. Project HS2, Birmingham Curzon Street station, UK Client Mace-Dragados Services Design & Engineering Image Credit: HS2 Ltd Image Credit: HS2 Ltd
Slide 3: Disclaimer
Disclaimer Statements included in this presentation that are not historical facts The forward-looking statements are based upon our current (including any statements concerning investment objectives, other expectations, plans, estimates, assumptions and beliefs that involve plans and objectives of m
Slide 4: Q2 & HY 2021 results – key messages
Part 1 Q2 & HY 2021 results – key messages Peter Oosterveer | Chief Executive Officer
Slide 5: Supporting energy transition
Supporting energy transition. Delivering U.S. wind-mill manufacturing facility. Project Factory for off-shore wind farms Client Large energy client Services Project & cost management
Slide 6: Accelerated organic revenue growth, further margin and backlog improvement
Accelerated organic revenue growth, further margin and backlog improvement Market environment Results Strategic progress • Strong rebound of major economies Second quarter results • Increased demand for sustainable solutions creating positive business outlook • Revenue growth of 5.7%; Operating EBIT
Slide 7: Delivering sustainable solutions to improve quality of life
Delivering sustainable solutions to improve quality of life
Slide 8: Reducing carbon footprint
Reducing carbon footprint Creating the UK’s first carbon neutral bus station. Client: Leicester City Council © Arcadis 2021 | Q2 & HY 2021 Results 8
Slide 9: Driving city-wide resilience
Driving city-wide resilience Reducing New York’s flood risk. Client: New York City Department of Environmental Protection © Arcadis 2021 | Q2 & HY 2021 Results 9
Slide 10: Innovative mobility solutions
Innovative mobility solutions Creating optimized and sustainable transportation for citizens. Client: Land Transport Authority, Singapore © Arcadis 2021 | Q2 & HY 2021 Results 10
Slide 11: Advancing our digital expertise and capabilities
Advancing our digital expertise and capabilities
Slide 12: Water Artificial Intelligence Pipe Predictor
Arcadis Gen AppliedInsight Water Artificial Intelligence Pipe Predictor Predicting failure and optimizing maintenance for water assets. © Arcadis 2021 | Q2 & HY 2021 Results 12
Slide 13: Environmental digital data collection
Field Now Environmental digital data collection program Instant data transparency for clients. Client: Public and private clients in Environment in US, UK and Latin America © Arcadis 2021 | Q2 & HY 2021 Results 13
Slide 14: Agile workspace software
Intelligent Buildings Agile workspace software Improving the experience, health, wellbeing and productivity for users. Type of clients: Large global banking, commercial and industrial property clients Arcadis London office © Arcadis 2021 | Q2 & HY 2021 Results 14
Slide 15: Growing our business through focus & scale
Growing our business through focus & scale
Slide 16: Continued backlog growth
Continued Scaling our innovation globally backlog growth PFAS remediation PFAS services growing at H1 2021 results: 40% annually. €1.4 Order intake billion 4% Organic backlog growth 1.1 Book-to-Bill © Arcadis 2021 | Q2 & HY 2021 Results 16
Slide 17: Financial Results
Supporting energy Part 2 transition at the Port of Rotterdam Financial Results Project Delta Corridor, Rotterdam Client Ministry of Infrastructure and Water Services Project & Cost management Virginie Duperat | Chief Financial Officer
Slide 18: Accelerated organic revenue growth in Q2
Accelerated organic revenue growth in Q2 Net Revenues and organic growth Operating EBITA (margin)1) € millions, % € millions, % 10.9% 11.0% 5.7% 9.2% 9.2% 0.5% 7.8% -2.6% -3.2% -3.3% 66 66 58 59 628 632 644 49 604 603 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Net Working Capital (%
Slide 19: Solid operating margin and strong leverage ratio
First half year results Solid operating margin and strong leverage ratio €1,276M 3.0% Scaling our innovation globally (H1’20: €1,286M) Organic Net Net Revenue Revenue growth Making net zero a reality for our clients €117M 9.2% (H1’20: €97M) (H1’20: 7.6%) Operating EBITA Operating EBITA Delivering >1
Slide 20: Americas: Sustained growth and very strong financial results
Americas Sustained growth and very strong financial results First half year 34% of total net revenues 2021 2020 Change Gross revenues 669 712 -6% Net revenues 432 452 -4% Organic growth (%) 5% Operating EBITA 50 41 22% Operating EBITA margin 11.5% 9.0% Second quarter 2021 2020 Change Gross revenues
Slide 21: Europe & Middle East: Outstanding performance UK
Europe & Middle East Outstanding performance UK First half year 48% of total net revenues 2021 2020 Change Gross revenues 718 676 6% Net revenues 609 573 6% Organic growth (%) 6% Operating EBITA 55 40 39% Operating EBITA margin 9.1% 7.0% Second quarter 2021 2020 Change Gross revenues 360 324 11% Ima
Slide 22: Asia Pacific: Solid performance in Australia, COVID-19 impact in Asia
Asia Pacific Solid performance in Australia, COVID-19 impact in Asia First half year 12% of total net revenues 2021 2020 Change Gross revenues 173 182 -5% Net revenues 159 164 -3% Organic growth (%) -3% Operating EBITA 8 10 -14% Operating EBITA margin 5.3% 6.0% Second quarter 2021 2020 Change Gross
Slide 23: CallisonRTKL: In the initial phase of recovery
CallisonRTKL In the initial phase of recovery First half year 6% of total net revenues 2021 2020 Change Gross revenues 99 133 -25% Net revenues 76 98 -22% Organic growth (%) -15% Operating EBITA 4 7 -43% Operating EBITA margin 5.0% 6.8% Second quarter 2021 2020 Change Gross revenues 51 63 -19% Net r
Slide 24: Strong EBITA performance generating 52% EPS growth
Strong EBITA performance generating 52% EPS growth In € millions H1 2021 H1 2020 change EBITA 115 92 25% Amortization & impairment EBIT -6 109 -8 84 30% 25% EBITA growth Net finance expense -13 -16 Taxes on income -20 -24 Normalized income tax rate1) 21% 34% €81 Exp. credit gain (loss) shareholder l
Slide 25: Strong financial position with room for investments
Strong financial position with room for investments • Free cash flow for first half year solid at €30 million Net debt1) (H1 2020: €81 million) € millions • Increase Net Working Capital: €62 million (H1 2020: €16 million decrease) • Capex: €22 million (H1 2020: €16 million) 378 310 316 48 107 • Net
Slide 26: Concluding remarks
Concluding remarks • Accelerated organic growth in Q2 and sustained strong order intake • Operating margin 9.2% in first half year, with excellent performance in Americas and UK • Solid Free Cash Flow • Strong financial position; leverage ratio at 0.3x © Arcadis 2021 | Q2 & HY 2021 Results 26 August
Slide 27: Wrap up
Part 3 Wrap up Peter Oosterveer | Chief Executive Officer
Slide 28: Support on cleaning oceans and rivers
Support on cleaning oceans and rivers Project Environmental and Social Performance Management Client The Ocean Cleanup Services Project & Cost Management
Slide 29: Maximizing Impact: Strategy 2021-2023
Maximizing Impact: Financial targets Non-financial targets Strategy 2021-2023 Organic Net Margin Voluntary staff Staff Revenue Operating EBITA turnover engagement Growth margin >10% < 10% Improving annually Mid-single digit Net Working Return on Net Capital & DSO Working Brand Diversity Capital Top
Slide 30: Summary
Summary • Solid Operational performance – Increase in revenue, improved margin and growth of backlog • Positive business outlook in major economies – Climate change felt globally – Further increased demand for Sustainable solutions • Confidence in our ability to deliver strategic targets set for 202
Slide 31: Q&A
Q&A