Arcadis NV · EURONEXT:ARCAD
Arcadis NV — FY2020 Earnings Presentation
22 slides from Arcadis NV's earnings presentation, Feb 18, 2021
Slide 1: Strong operational performance & excellent free cash flow
Strong operational performance & excellent free cash flow Arcadis 2020 Q4 and full year results 18 February 2021
Slide 2: 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 3: Our response to COVID-19
Our response to COVID-19 Significant action taken to protect our people Our solutions supported clients in fighting COVID-19 Design for converting Arcadis responded with storage containers into dedicated COVID-19 workstreams COVID-19 treatment e.g. people, client care, communications, stations for U
Slide 4: Operational Results
Part 1 Operational Results Peter Oosterveer | Chief Executive Officer Redesigning Lancaster’s Client Services City Of Lancaster, Ohio Design & Engineering 6-million-gallon-a-day water Project & Cost Management treatment plant
Slide 5: 2020 full year results: strong margin and excellent free cash flow
2020 full year results: strong margin and excellent free cash flow 9.2% Operating EBITA margin • Arcadis continues to demonstrate resilience; key strategic targets for 2020 achieved €324 million • Strong margin and excellent free cash flow Free Cash Flow • Institutionalized performance enhancements
Slide 6: Delivered on strategy 2018-2020: Creating A Sustainable Future
Delivered on strategy 2018-2020: “Creating A Sustainable Future” People & Culture Innovation & Growth Focus & Performance Voluntary staff turnover 8.7% Organic Revenue Growth (CAGR) Margin Voluntary staff turnover < Market >GDP growth in our markets 2% Operating EBITA: 8.5% -9.5% 9.2% Key Clients 2x
Slide 7: Financial Results
Part 2 Financial Results Virginie Duperat | Chief Financial Officer Client HS2 Supporting HS2 in Services Consultancy meeting its net zero carbon ambitions
Slide 8: Strong fourth quarter performance
Strong fourth quarter performance Net Revenues and organic growth Operating EBITA (margin) € millions, % € millions, % 5% 11.0% 3% 10.9% 9.2% -3% -3% -3% 7.8% 7.2% 61 66 66 660 658 628 48 49 604 603 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Net Working Capital Days Sales Outstandin
Slide 9: Excellent full year results and strong organic backlog growth
Excellent full year results and strong organic backlog growth €2.5 bn -1.5% Organic Net Net Revenue Revenue growth €229 M 9.2% (€213M) (8.2%) Operating EBITA Operating EBITA % Advise on resilience and Support on UK’s largest retail sustainability improvements electric vehicle charging network €1.49
Slide 10: Americas: continued revenue growth and margin improvement
Americas: continued revenue growth and margin improvement Full year 35% of total net revenues 2020 2019 Change Gross revenues 1,370 1,394 -2% Net revenues 876 860 2% Organic growth (%) 5% Operating EBITA 102 71 42% Operating EBITA margin 11.6% 8.3% Fourth quarter 2020 2019 Change Gross revenues 335
Slide 11: Europe & Middle East: public and green investments continued at strength
Europe & Middle East: public and green investments continued at strength Full year 45% of total net revenues 2020 2019 Change Gross revenues 1,339 1,390 -4% Net revenues 1,119 1,145 -2% Organic growth (%) -2% Operating EBITA 92 87 5% Operating EBITA margin 8.2% 7.6% Fourth quarter 2020 2019 Change G
Slide 12: Asia Pacific: excellent performance in Australia, China on path to recovery
Asia Pacific: excellent performance in Australia, China on path to recovery Full year 13% of total net revenues 2020 2019 Change Gross revenues 358 388 -8% Net revenues 323 350 -8% Organic growth (%) -4% Operating EBITA 34 35 -3% Operating EBITA margin 10.6% 10.0% Fourth quarter 2020 2019 Change Gro
Slide 13: CallisonRTKL: pressure from COVID-19, preparing for market recovery
CallisonRTKL: pressure from COVID-19, preparing for market recovery Full year 7% of total net revenues 2020 2019 Change Gross revenues 236 301 -22% Net revenues 176 222 -21% Organic growth (%) -19% Operating EBITA 1 19 -92% Operating EBITA margin 0.8% 8.4% Fourth quarter 2020 2019 Change Gross reven
Slide 14: Strong EBITA performance generating 10% EPS growth
Strong EBITA performance generating 10% EPS growth In € millions 2020 2019 change EBITA 224 192 17% Amortization & impairment -141 -17 - EBIT Net finance expense 83 -27 175 -40 -53% -33% 17% EBITA growth Taxes on income -55 -40 38% Normalized income tax rate1) 33% 27% - Exp. credit gain (loss) share
Slide 15: Strong free cash flow sustained by group wide cash management program
Strong free cash flow sustained by group wide cash management program In € millions 2020 2019 ▪ Cash management EBITDA 349 309 program launched Lease expenses -80 -70 in Q1 Adjusted EBITDA1 269 235 ▪ Oracle North America Changes in net working capital 168 -85 invoicing inefficiencies remedied Change
Slide 16: Balance sheet significantly strengthened
Balance sheet significantly strengthened In € millions Assets 2020 2019 Equity & Liabilities 2020 2019 Intangible assets and goodwill 886 1,080 Total equity 910 965 Fixed assets 84 101 Debt 497 607 Right-of-use assets Trade receivables1) 256 468 267 603 Lease liabilities Contract liabilities (billin
Slide 17: Reinstalment of dividend in 2020
Reinstalment of dividend in 2020 Dividend (€) and pay-out ratio (%) 1,00 250% 0,90 0,80 200% 40% 0,70 0.63 0.60 0.60 0,60 0.57 150% 0.52 0,50 0.47 0.47 0.47 0.47 (% of Net Income from 0.43 0,40 100% Operations) Pay-out ratio % 2020 0,30 48% 0,20 40% 40% 35% 38% 40% 38% 40% 40% 40% 50% 0,10 0,00 0% 2
Slide 18: Wrap up
Part 3 Wrap up Peter Oosterveer | Chief Executive Officer Client BMW Reducing construction Services Project & cost management cost of BMW China factory by 24%
Slide 19: Accelerate strategy to maximize impact
Accelerate strategy to maximize impact © Arcadis 2021 | 2020 Q4&FY Results 18 February 2021 19
Slide 20: 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 21: Well positioned for the future
Well positioned for the future Delivered very strong performance under challenging conditions Legacy issues resolved COVID-19 reinforced necessity for societies to invest in resilient and sustainable solutions Arcadis well positioned to seize market opportunities: • Strong financial position improve
Slide 22: Q&A
Q&A