Bureau Veritas 2025 strategy aims to take the Group’s value
creation to the next level
Bureau Veritas_Press Release_2021_Investor_Day
PRESS RELEASE
Neuilly-sur-Seine, France – December 3, 2021
Bureau Veritas 2025
strategy aims to take the Group’s
value creation to the next level
Bureau Veritas is today hosting its Investor Day
(see connection details on page 4) during which Didier
Michaud-Daniel, Chief Executive Officer, François Chabas, Executive
Vice-President, Finance, Eduardo Camargo, Executive Vice-President,
Group Transformation & Business Development, Ségolène de
Rose, Senior Vice-President, Group Strategy and M&A and Helen
Bradley, Executive Vice-President, Human Resources, will
present the Group's 2025 strategy and financial ambitions.
Didier Michaud-Daniel,
Chief Executive Officer, commented:
“The last 6 years were transformational for
Bureau Veritas. The Group successfully rebalanced its
activities to build an efficient growth platform, underpinned by
resilient businesses as well as deep societal and sectorial trends.
We have assembled diverse and talented teams with skills that
complement one another, and with an efficient management
structure.
The 2025 strategy will be a value enhancing
journey ensuring both short- and long-term growth for Bureau
Veritas, by capturing the maximum value from existing businesses
adjacent to our core activity and leading sustainability in the TIC
sector. We will build upon the strengths of Bureau Veritas, of
which our ability to be extremely reactive with efficient execution
will constitute the corner stones of our success in the years to
come.
Bureau Veritas intends to acquire leadership
positions in activities and sectors at the core of its expertise
with a more innovative, proactive and agile approach. We have the
ambition to become the undisputed world leader on critical societal
subjects such as energy transition, smart cities, new forms of
mobility and traceability of supply chains.
I am convinced that Bureau Veritas has a central
role to play in the world, and in being a Business to Business to
Society company.”
Having weathered the Covid‐19 crisis and
delivered a strong performance over the past years, Bureau Veritas
is capitalizing on the successful delivery of the previous
strategic plan and relies upon the key fundamentals of the TIC
market, which offer solid growth prospects. This roadmap is based
upon three Value Drivers:
-
Scale: Bureau Veritas aims to capture the maximum
value of its existing assets, capabilities, and geographies by
accelerating the standardization and replication of its existing
service offer. The transformation journey will continue towards an
even more market-oriented organization, capitalizing on significant
investments made during the last 6 years, both internally and
externally. This will boost organic growth;
-
Expand: Bureau Veritas will focus notably on
sustainability and the energy transition, both of which represent
exciting opportunities for growth. The Group will take full
advantage of cross-cutting growth opportunities that will arise
alongside macro-economic and societal shifts (5G, new mobility,
etc.). This will be achieved through increased penetration of
rising and high-value markets, and by capturing both organic and
external growth opportunities;
-
Lead: Bureau Veritas will invest in businesses
that have the potential to become part of the TIC core business in
the future. The Group will fully take advantage of technological
shifts to be well-positioned on key trending topics such as
connectivity, traceability, and cybersecurity. Like Expand, Lead
involves both organic and external growth.
To support its Scale, Expand and Lead drivers,
Bureau Veritas has defined M&A priorities by markets and
geographies, outlining three key objectives:
- Gaining
market access in high potential local markets;
-
Acquiring complementary
capabilities in targeted markets and geographies
to be able to provide end-to-end solutions to its clients;
- Entering
new markets that Bureau Veritas believes will be relevant
in the future.
Additionally, Bureau Veritas defined
three Enablers that will be key levers to execute
its strategy and to reach its ambition:
- People
and Culture: Bureau
Veritas’ strategy is deeply linked to its teams and culture – the
Group is committed to fostering a sustainable and high-performance
culture, in line with its values and mission;
-
Organization and Governance: Bureau Veritas is
committed to ensuring that its organization and governance are
aligned with the Group’s values and client engagement – CSR is one
of the key components within the Group’s governance;
-
Innovation and Digital: innovation and digital are
key enablers to accelerate its 2025 strategic direction execution,
to anticipate its clients’ needs, to help them ensure more
efficiency regarding their assets, systems and products, and to
accompany them in their own digital transformation.
-
FIVE OVERARCHING THEMES TO FUEL BUSINESS OPPORTUNITIES
During the Investor Day, the management will
illustrate its strategy by presenting business cases on five
overarching themes, representing a summary of the group’s 2025
priorities, which are expected to fuel the Group’s development from
a business perspective: Asset Lifecycle Solutions,
Sustainability Assurance, Energy transition Conformity Assessment,
Technology & Online Retail and Cybersecurity
Compliance.
In all of these areas, Bureau Veritas already
enjoys renowned expertise and a competitive advantage, which will
be leveraged and developed to benefit from the underlying trends
that underpin these opportunities.
-
2025 FINANCIAL AMBITIONS AND ASSUMPTIONS
As part of its strategy, the Group set a new
mid-term financial ambition:
2025 AMBITION |
|
GROWTH |
Resilient enhanced organic growth: mid-single-digit |
MARGIN |
No compromise on margin: above 16%1 |
CASH |
Strong Cash Conversion2: superior to 90% |
The use of Free Cash Flow generated from our
operations will be balanced between Capital Expenditure (Capex),
Mergers & Acquisitions (M&A) and shareholder returns
(Dividend):
2025 ASSUMPTIONS |
|
CAPEX |
Between 2.5% to 3.0% of Group revenue |
M&A |
Disciplined and selective bolt-on M&A strategy |
DIVIDEND |
Pay-out of around 50% of Adjusted Net Profit |
-
2025 SUSTAINABILITY AMBITIONS
Beyond Financial performance, Bureau Veritas
remains committed to its extra-financial performance. The
Group presented its strategy for social and environmental
responsibility up to 2025. This strategy, aligned with the United
Nations' Sustainable Development Goals (UN SDGs), aims at “Shaping
a Better World”. It is built upon three strategic axes: “Shaping a
better workplace”, “Shaping a better environment” and “Shaping
better business practices”; and three sustainability pillars:
“Social & Human capital”, “Natural capital” and
“Governance”.
Bureau Veritas will track and report annually
its CSR performance through 18 selected key performance indicators.
In addition, the Group is committed to the achievement of five key
performance indicators through 2025:
|
UNITED NATIONS’ SDGS |
2025 TARGET |
SOCIAL & HUMAN CAPITAL |
|
|
Total Accident Rate (TAR)3 |
#3 |
0.26 |
Proportion of women in leadership positions4 |
#5 |
35% |
Number of training hours per employee (per year) |
#8 |
35.0 |
NATURAL CAPITAL |
|
|
CO2 emissions per employee (tons per year)5 |
#13 |
2.00 |
GOVERNANCE |
|
|
Proportion of employees trained to the Code of Ethics |
#16 |
99% |
-
CONNECTING TO THE INVESTOR DAY
- Schedule (Paris
Time): Friday December 3, 2021 – 9:00am CET to 12:00pm CET
- The presentation
slides will be available at: https://group.bureauveritas.com
- Please register and
connect to https://investorday-bureauveritas.com/register to access
the live event.
- If you have
difficulties accessing our platform, this may be due to security
constraints imposed by your organization. If this is the case, we
recommend that you try registering and logging in using a personal
device (mobile, tablet or laptop) not connected to your
organization’s network (VPN).
- In case of
technical issue, you will be able to connect to the event through:
Microsoft Teams Live Event
-
2022 FINANCIAL AGENDA
- Full-Year 2021
Results: February 24, 2022
- Q1 2022 revenue:
April 21, 2022
- H1 2022 Results:
July 28, 2022
About Bureau Veritas Bureau
Veritas is a world leader in laboratory testing, inspection, and
certification services. Created in 1828, the Group has more than
78,000 employees located in more than 1,600 offices and
laboratories around the globe. Bureau Veritas helps its 400,000
clients improve their performance by offering services and
innovative solutions in order to ensure that their assets,
products, infrastructure and processes meet standards and
regulations in terms of quality, health and safety, environmental
protection and social responsibility.Bureau Veritas is listed on
Euronext Paris and belongs to the Next 20 index.Compartment A, ISIN
code FR 0006174348, stock symbol: BVI.For more information, visit
www.bureauveritas.com, and follow us on Twitter (@bureauveritas)
and LinkedIn.
|
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ANALYST/INVESTOR CONTACTS |
|
MEDIA CONTACTS |
Laurent Brunelle |
|
Caroline Ponsi
Khider |
+33 (0)1 55 24 76 09 |
|
+33 (0)7 52 60 89 78 |
laurent.brunelle@bureauveritas.com |
|
caroline.ponsi-khider@bureauveritas.com |
|
|
|
Florent Chaix |
|
DGM Conseil |
+33 (0)1 55 24 77 80 |
|
+33 (0)1 40 70 11 89 |
florent.chaix@bureauveritas.com |
|
thomasdeclimens@dgm-conseil.frquentin.hua@dgm-conseil.fr |
1 Adjusted operating margin at constant exchange
rate.
2 Net cash generated from operating activities
before corporate tax/Adjusted Operating Profit, on average over the
period.
3 TAR: Total Accident Rate (number of accidents
with and without lost time x 200,000/number of hours worked).
4 Proportion of women from the Executive
Committee to Band II (internal grade corresponding to a management
or executive management position) in the Group (number of women on
a full-time equivalent basis in a leadership position/total number
of full-time equivalents in leadership positions).
5
Greenhouse gas
emissions from offices and laboratories, tons of CO2 equivalent per
employee and per year for Scopes 1, 2 and 3 (emissions related to
business travel).
- Bureau Veritas_Press Release_2021_Investor_Day
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