Bureau Veritas Sa · EURONEXT:BVI

Bureau Veritas Sa — FY2010 Earnings Presentation

59 slides from Bureau Veritas Sa's earnings presentation, Mar 1, 2011

  1. Slide 1: 2010 Full-Year Results

    2010 Full-Year Results March 1st, 2011 Frank Piedelièvre Chairman & Chief Executive Officer François Tardan Chief Financial Officer Copyright©2011 Bureau Veritas - All rights reserved.

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains forward-looking statements which are based on current plans and forecasts of Bureau Veritas’ management. Such forward-looking statements are by their nature subject to a number of important risk and uncertainty factors such as those described in the Document de

  3. Slide 3: Agenda

    Agenda Highlights Financial review Business review Outlook Q&A Appendix Copyright©2011 Bureau Veritas - All rights reserved. March 1, 2011 3

  4. Slide 4: 2010 Highlights

    2010 Highlights Frank Piedelièvre Chairman & Chief Executive Officer Copyright©2011 Bureau Veritas - All rights reserved.

  5. Slide 5: Bureau Veritas at a glance

    Bureau Veritas at a glance Founded in 1828 Revenue by business* Marine Commodities 10% 15% A global leader in conformity assessment and certification services Government Services Industry 6% 19% Offering services and innovative solutions to its clients to ensure that their assets, Consumer Products

  6. Slide 6: Highlights

    Highlights 2010 performance Revenues +11% Adjusted operating profit +13% Attributable net profit +15% Dividends +37% Bureau Veritas becomes a leading player in commodities testing Fast growing geographies represent 45% of revenues In 2011, the Group expects strong growth in revenues and adjusted ope

  7. Slide 7: Extensive geographic footprint with a strong exposure to fast growing zones

    Extensive geographic footprint with a strong exposure to fast growing zones Americas (19% of revenue1) France (21% of revenue1) EMEA (33% of revenue1) Asia Pacific (27% of revenue1) 200 offices and 100 labs 160 offices and 10 labs 360 offices and 110 labs 210 offices and 110 labs 10,800 staff 7,400

  8. Slide 8: Financial Review

    Financial Review François Tardan Chief Financial Officer Copyright©2011 Bureau Veritas - All rights reserved.

  9. Slide 9: Summary income statement

    Summary income statement (in € millions) FY 2010 FY 2009 Change Revenue 2,929.7 2,647.8 +10.6% Adjusted EBITDA(1) 553.9 484.0 +14.4% Adjusted operating profit(1) 490.5 433.2 +13.2% Adjusted operating margin 16.7% 16.4% +30 bps Other operating expense (34.2) (27.8) +23.0% Operating profit 456.3 405.4

  10. Slide 10: FY 2010 revenue

    FY 2010 revenue (€m) +2.9% +4.9% 2,929.7 +2.8% 2,647.8 Total growth of +10.6% FY 2009 Revenue Organic Growth External Growth Currency Impact FY 2010 Revenue Good recovery of business in H2: organic growth of +6% vs +0% in H1. Copyright©2011 Bureau Veritas - All rights reserved. March 1, 2011 10

  11. Slide 11: Financial performance

    Financial performance Revenues & adjusted operating margin Margin +220 Average improvement: bps total 12% growth: Adjusted operating margin 16.4% 16.7% 15.1% 15.2% 14.4% 14.8% 14.5% 13.2% 11.9% 10.4% 2,930 2,549 2,648 1,846 2,067 1,422 1,647 1,145 1,283 1,012 2001 2002 2003 2004 2005 2006 2007 2008

  12. Slide 12: Adjusted operating profit

    Adjusted operating profit (in € millions) FY 2010 FY 2009 Change Operating profit 456.3 405.4 +12.6% Amortization of acquisition intangibles(1) 27.5 21.7 +€5.8m Discontinued activities 2.4 6.1 €(3.7)m Transaction-related costs 4.3 - +€4.3m Total other operating expense 34.2 27.8 +€6.4m Adjusted oper

  13. Slide 13: Net financial expense

    Net financial expense (in € millions) FY 2010 FY 2009 Change Finance costs, net (36.5) (44.0) +7.5 O/w Fair value adjustments on interest rate hedges (1.7) (0.4) (1.3) Foreign exchange gains / (losses) 2.3 (10.6) +12.9 O/w Fair value adjustments on foreign exchange hedges - 0.7 (0.7) Interest cost o

  14. Slide 14: Adjusted net profit

    Adjusted net profit (in € millions) FY 2010 FY 2009 Change Adjusted operating profit 490.5 433.2 +13.2% Net financial expense (45.7) (61.1) (25.2)% Adjusted income tax(1) (122.3) (94.1) +30.0% Net income from activities held for sale - 0.4 - Share of profit of associates (0.1) 0.1 - Adjusted net pro

  15. Slide 15: Summary cash flow statement

    Summary cash flow statement (in € millions) FY 2010 FY 2009 Change Profit before income tax 410.5 344.4 +19.2% Elimination of cash flows from financing and investing activities 42.2 42.2 Provisions and other non-cash items 8.8 22.9 Depreciation, amortisation and impairment, net 96.6 72.6 Cash before

  16. Slide 16: Adjusted net financial debt

    Adjusted net financial debt(1) (in € millions) 91.3 8.8 3.6 1,051.8 567.5 693.0 287.6 Net Debt at Levered free Acquisition Dividends Disposals Others Net Debt at Dec. 2009 cash flow spend Dec. 2010 (1) Net financial debt after currency hedging instruments as defined for the Group’s covenants calcula

  17. Slide 17: Optimised leverage ratio

    Optimised leverage ratio(1) 2.51x 2.07x Inspectorate Inspectorate acquisition acquisition 1.89x 1.78x 1.38x 1.31x Amdel Amdel acquisition acquisition Dec 07 June 08 Dec 08 Dec 09 June 10 Dec 10 (1) Adjusted net financial debt / EBITDA (earnings before interest, tax, depreciation, amortization and pr

  18. Slide 18: Summary financial position

    Summary financial position (in € millions) Dec. 2010 Dec. 2009 Goodwill 1,329.3 832.2 Net fixed assets 611.5 379.6 Other non current assets 117.0 97.7 Working capital requirements 193.0 166.9 Total investment 2,250.8 1,476.4 Total equity 859.9 501.2 Other non current liabilities(1) 162.8 125.1 Provi

  19. Slide 19: Earning per share (EPS) and dividend

    Earning per share (EPS) and dividend (in € millions) EPS(1) Adjusted EPS(2) +14.5% +15.0% 2.91 2.68 2.53 2.34 2009 2010 2009 2010 AA dividend dividend of of €1.15 €1.15 per per share share (+37%) (+37%) will will be be proposed proposed to to the the AGM AGM ofof May May 27, 27, 2011, 2011, represen

  20. Slide 20: 8 Acquisitions – c. €350m of revenues

    8 Acquisitions – c. €350m of revenues Name Date Business Country Annual revenues SMSI January 2010 Elevator Inspection services USA €0.2m Advanced Coal June 2010 Laboratories providing coal testing South Africa €8.5m Technology services K. Certificazioni July 2010 In-service inspection and verificat

  21. Slide 21: Business Review

    Business Review Frank Piedelièvre Chairman & Chief Executive Officer Copyright©2011 Bureau Veritas - All rights reserved.

  22. Slide 22: Revenue by business

    Revenue by business Q4 2010 FY 2010 €m Organic Scope FX €m Organic Scope FX Marine 78.5 (2.8)% 0.0% +6.1% 313.5 (5.0)% 0.0% +4.6% Industry 211.4 +16.4% (0.3)% +11.4% 757.4 +10.3% (0.9)% +10.8% IVS 122.0 +4.1% (1.3)% +1.6% 431.1 +0.9% (2.0)% +1.1% Construction 110.7 0.0% (5.0)% +3.3% 427.8 (3.1)% (5.

  23. Slide 23: Adjusted operating profit by business

    Adjusted operating profit by business Adj. Operating profit Adj. Operating margin FY 2010 FY 2009 Change FY 2010 FY 2009 Change Marine 90.5 99.7 (9.2)% 28.9% 31.7% (280)bps Industry 88.5 74.8 +18.3% 11.7% 11.9% (20)bps IVS 52.7 41.3 +27.6% 12.2% 9.6% +260bps Construction 43.8 40.8 +7.4% 10.2% 8.9% +

  24. Slide 24: Marine

    Marine Conformity assessment of ships and marine equipment FY 2010 FY 2009 Change Revenue €313.5m €314.8m (0.4)% Organic (5.0)% Scope 0.0% Currency +4.6% Adjusted operating profit €90.5m €99.7m (9.2)% Adjusted operating margin 28.9% 31.7% (280)bps Copyright©2011 Bureau Veritas - All rights reserved.

  25. Slide 25: Marine

    Marine -5.0% organic evolution BV new construction indicators H1 H2 (GRTm) 35.6 New ships -15% -10% 30.2 31.0 28.8 In-Service +1% +10% New ships and equipment certification (53% of revenues) 17.4 18.0 -12.6% organic revenue evolution 12.2 9.7 10.9 2010 new order intake x2 vs 2009 9.5 6.1 5.3 6.5 3.5

  26. Slide 26: Offshore initiative

    Offshore initiative Market context Floating Production Unit P-55 for Petrobras Supported by oil price increase and LT demand Offshore field development in increasingly deep water, development of projects in Arctic, requiring more technology Integration of the Need for additional units for oil survey

  27. Slide 27: Industry

    Industry Conformity assessment of facilities/equipment Minerals testing FY 2010 FY 2009 Change Revenue €757.4m €630.0m +20.2% Organic +10.3% Scope (0.9)% Currency +10.8% Adjusted operating profit €88.5m €74.8m +18.3% Adjusted operating margin 11.7% 11.9% (20)bps Copyright©2011 Bureau Veritas - All r

  28. Slide 28: Industry

    Industry +10.3% Organic growth 2010 revenue breakdown Q4 FY Minerals Industry 15.6% 9.9% €149.3m in revenues Minerals 19.8% 12.5% 12.2% in Adj. Operating margin Acceleration in Q4: +16.4% Industry All major segments contributing €608.1m Oil & Gas: Capex and Opex in revenues Power: Fossil, Nuclear an

  29. Slide 29: Nuclear initiative

    Nuclear initiative Global reach (400 engineers worldwide) Diversified client base: operators (EDF, TVO, Kansai, Nucleoelectrica Argentina, Iberdrola, A joint initiative of Areva Endesa, GDF Suez,Eskom,NPCIL) ; Manufacturers and Bureau Veritas (Areva, Westinghouse, Mitsubishi) Complete service offeri

  30. Slide 30: In-Service Inspection & Verification

    In-Service Inspection & Verification Periodic inspection of equipment & facilities to assess conformity with regulations FY 2010 FY 2009 Change Revenue €431.1m €431.0m 0.0% Organic +0.9% Scope (2.0)% Currency +1.1% Adjusted operating profit €52.7m €41.3m +27.6% Adjusted operating margin 12.2% 9.6% +

  31. Slide 31: In-Service Inspection & Verification

    In-Service Inspection & Verification +0.9% Organic growth Quarterly Organic growth First nine months impacted by portfolio rationalization in +4.1% +1.7% +1.7% the UK and Spain 12.2% Adjusted operating margin (+260 bps) (4.1)% On-going deployment of the new Siebel/Opale suite of integrated tools Q1'

  32. Slide 32: Construction

    Construction Conformity assessment of buildings and infrastructures FY 2010 FY 2009 Change Revenue €427.8m €457.5m (6.5)% Organic (3.1)% Scope (5.5)% Currency +2.1% Adjusted operating profit €43.8m €40.8m +7.4% Adjusted operating margin 10.2% 8.9% +130bps Copyright©2011 Bureau Veritas - All rights r

  33. Slide 33: Construction

    Construction -3.1% Organic growth Quarterly Organic growth Steady recovery over the year in all geographies except Spain and the US +0.6% +0.0% Double digit growth in Asia (2.3)% Green building services growing in Europe (10.3)% 10.2% Adjusted operating margin (+130bps) Q1'10 Q2'10 Q3'10 Q4'10 Impro

  34. Slide 34: Green Building: BV, a global partner of reference

    Green Building: BV, a global partner of reference A large growing market, driven by: New Energy and Carbon regulations, especially in Europe (Energy Performance of Buildings Directive 2010) and Asia Green Value of assets, becoming a new driver in acquisitions and portfolio strategies Since 2009, Bur

  35. Slide 35: Certification

    Certification Certification of management systems in the area of QHSE and second party auditing services FY 2010 FY 2009 Change Revenue €321.6m €296.9m +8.3% Organic +4.0% Scope 0.0% Currency +4.3% Adjusted operating profit €66.4m €57.6m +15.3% Adjusted operating margin 20.6% 19.4% +120bps Copyright

  36. Slide 36: Certification

    Certification 2010 revenue breakdown +4.0% Organic growth Sustainability & Climate Training & Others Q4 negative due to the loss of the French Civil Aviation 7% change schemes contract (€22m of revenues in 2010) 6% Double digit growth in the BRICs Transport schemes Global contracts with multinationa

  37. Slide 37: Inspectorate

    Inspectorate Commodities inspection and testing Oil & Petrochemicals – Metals & Minerals - Agriculture FY 2010 FY 2009 Change Revenue €115.9m - 100% Organic - - Scope 100% - Currency - - Adjusted operating profit €12.5m - 100% Adjusted operating margin 10.8% - - Copyright©2011 Bureau Veritas - All r

  38. Slide 38: Inspectorate

    Inspectorate +12.2% Organic growth over FY 2010 2010 revenue by market segment Oil & Petrochemicals: increased coverage and capability from growth projects (Ukraine, US, India, China, Latin America) Agriculture 14% Metals & Minerals: recovery in upstream exploration, solid growth in coal inspection

  39. Slide 39: Commodities business

    Commodities business Bureau Veritas becoming a leading player 2010 Pro Forma Adjusted in commodities inspection and testing Revenues Operating Margin % Global #3 in Oil profit Global #2 in Minerals Global #2 in Agri Pro-forma 488 52 10.7% A new verticalized business as of January 1st 2011 338 34 10.

  40. Slide 40: Consumer Products

    Consumer Products Testing, inspection and certification of consumer goods FY 2010 FY 2009 Change Revenue €382.3m €359.1m +6.5% Organic +0.9% Scope +0.1% Currency +5.5% Adjusted operating profit €105.6m €99.4m +6.2% Adjusted operating margin 27.6% 27.7% (10)bps Copyright©2011 Bureau Veritas - All rig

  41. Slide 41: Consumer Products

    Consumer Products Strong recovery on growth Quarterly Organic growth Toys and Juvenile products at +7.5% in H2 +7.9% vs -20.6% in H1’10 due to strong CPSIA comps in H1’09 +5.3% +2.1% China testing for domestic standards Expansion into growing sourcing markets (Vietnam, (11.2)% Cambodia, Indonesia, K

  42. Slide 42: Government Services & International Trade

    Government Services & International Trade Trade facilitation services and commodities inspection and testing FY 2010 FY 2009 Change Revenue €180.1m €158.5m +13.6% Organic +12.8% Scope 0.0% Currency +0.8% Adjusted operating profit €30.5m €19.6m +55.6% Adjusted operating margin 16.9% 12.4% +450bps Cop

  43. Slide 43: Government Services & International Trade

    Government Services & International Trade 2010 revenue breakdown by geography +12.8% Organic growth Americas 9% Increase in FOB value inspected (Africa, Middle East, Europe Asia) 7% New Verification Of Conformity – VOC programs: Algeria, Saudi Arabia, Syria, Philippines Scope expansion: Indonesia Mi

  44. Slide 44: Outlook

    Outlook Frank Piedelièvre Chairman & Chief Executive Officer Copyright©2011 Bureau Veritas - All rights reserved.

  45. Slide 45: 2011 Outlook

    2011 Outlook In 2011, the Group expects strong growth in revenues and adjusted operating profit, taking into account: The impact of the full-year consolidation of acquisitions completed in 2010 and year-to-date; and Organic growth exceeding that of 2010 and consistent with H2. Those expectations are

  46. Slide 46: Q&A

    Q&A Copyright©2011 Bureau Veritas - All rights reserved.

  47. Slide 47: Bureau Veritas – Move Forward with Confidence

    BUREAU |BUREAU_ VERITAS Move Forward with Confidence

  48. Slide 48: Appendix

    Appendix Copyright©2011 Bureau Veritas - All rights reserved.

  49. Slide 49: Consolidated income statement

    Consolidated income statement (in € millions) FY 2010 FY 2009 Revenue 2,929.7 2,647.8 Purchase and external charges (843.4) (750.2) Personnel costs (1,479.4) (1,336.5) Taxes other than on income (60.8) (58.8) Net (additions to)/reversals of provisions 2.1 (37.1) Depreciation and amortization (89.1)

  50. Slide 50: Consolidated financial position

    Consolidated financial position (in € millions) Dec. 2010 Dec. 2009 Goodwill 1,329.3 832.2 Intangible assets 330.4 171.4 Property, plant and equipment 281.1 208.2 Other non-current assets 148.9 98.5 Total non-current assets 2,089.7 1,310.3 Trade and other receivables 929.7 798.9 Other current assets

  51. Slide 51: Consolidated statement of comprehensive income

    Consolidated statement of comprehensive income (in € millions) FY 2010 FY 2009 Net profit 297.6 257.7 Cash Flow hedge instruments 73.5 24.6 Actuarial gains / losses (10.3) (5.6) Currency translation adjustments 70.8 13.1 Financial assets held for sale - - Income tax on other comprehensive income (1.

  52. Slide 52: Statement of changes in equity

    Statement of changes in equity Attributable to Attributable Currency shareholders to minority (in € millions) Share Share translation Other Total of the interests capital premium reserves reserves equity Company January 1, 2010 13.1 116.2 (44.5) 416.4 501.2 489.7 11.5 Exercise of stock options - 1.6

  53. Slide 53: Cash flow statement

    Cash flow statement (in € millions) FY 2010 FY 2009 Profit before income tax 410.5 344.4 Elimination of cash flows from financing and investing activities 42.2 42.2 Provisions and other non-cash items 8.8 22.9 Depreciation, amortization and impairment 96.6 72.6 Movements in working capital attributa

  54. Slide 54: Detail of adjusted EBITDA calculation

    Detail of adjusted EBITDA calculation (in € millions) FY 2010 FY 2009 Adjusted operating profit 490.5 433.2 + Depreciation and amortisation 89.1 70.6 - Amortisation of business combination (25.7) (19.8) intangibles Adjusted EBITDA 553.9 484.0 Copyright©2011 Bureau Veritas - All rights reserved. Marc

  55. Slide 55: Detail of adjusted net financial debt calculation

    Detail of adjusted net financial debt calculation (in € millions) Dec. 2010 Dec. 2009 Bank borrowings (non-current) 1,185.8 740.8 Bank borrowings (current) 85,2 77.8 Bank overdrafts 23,6 7.7 Gross financial debt 1,294.6 826.3 Total cash and cash equivalents 225.0 147.0 Net financial debt 1,069.6 679

  56. Slide 56: Currency exposure

    Currency exposure Revenue Currency Split(1) Key Sensitivities(1) Group 1% Euro Group Operating Revenue Others 18% Change vs. Profit Impact Impact Euro 41% BRL 4% USD 0.16% 0.20% CNY 5% HKD 0.05% 0.09% JPY 2% AUD 6% GBP 0.03% 0.01% GBP 3% HKD 5% USD 16% CNY 0.05% 0.11% AUD 0.06% 0.03% 1. As of Novemb

  57. Slide 57: Earnings per share (EPS)

    Earnings per share (EPS) (in € millions) 2010 2009 Change Basic EPS(1) 2.68 2.34 +14.5% Diluted EPS(2) 2.63 2.30 +14.3% Basic adjusted EPS(1) 2.91 2.53 +15.0% Diluted adjusted EPS(2) 2.85 2.49 +14.5% (1) Calculated on weighted average number of shares of 108,403,796 in 2010 and 108,040,729 in 2009 (

  58. Slide 58: Shareholder structure

    Shareholder structure Market capitalization of €6.1bn at February 25, 2011 Ownership structure(1) Free float breakdown Treasury Individual investors shares 0.7% 9% Free Float 44.1% Wendel group 51.5% Institutional investors 91% Employees Managers o/w 26% US 0.8% 2.9% 24% France 21% UK 16% Continenta

  59. Slide 59: Bureau Veritas – Move Forward with Confidence

    BUREAU Move Forward with Confidence

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