Arcadis Nv · EURONEXT:ARCAD
Arcadis Nv — Investor Presentation (September 2022)
22 slides from Arcadis Nv's investor presentation, September 2022
Slide 1: Arcadis Investor Deck September 2022
Arcadis Investor Deck September 2022
Slide 2: 2022 Half year and second quarter results
2022 Half year and second quarter results
Slide 3: Summary of results: Strong growth and improved performance
Summary of results Strong growth and improved performance Second quarter 2022 results: Organic net revenue growth Strong backlog underlines client Operating EBITA margin improved accelerates1) demand1) 8.1% 5.9% 9.3% (last year: 9.1%) © Arcadis 2022 | 2022 September Arcadis investor deck 1) Underlyi
Slide 4: Global Business Areas: Resilience
Global Business Areas Resilience Second quarter 2022 results: CLIENT DEMAND CASE STUDY Organic net revenue growth • Environmental restoration: remediation oil & gas clients, tightening regulation PFAS 8.5% • Water optimization: digital twins, energy efficiency, water savings Climate mitigation & car
Slide 5: Global Business Areas: Places
Global Business Areas Places Second quarter 2022 results: CLIENT DEMAND CASE STUDY Organic net revenue growth • Net Zero Facilities and Intelligent Buildings • Industrial Manufacturing: 5.1% • Life Sciences • Automotive • Technology Designing a 130,000 sq. ft. • Resilient public transport facilities
Slide 6: Global Business Areas: Mobility
Global Business Areas Mobility Second quarter 2022 results: CLIENT DEMAND CASE STUDY Organic net revenue growth • Connected Highways and Intelligent Rail: efficiency & reliability of travel, reducing 11.1% disruption and congestion • New Mobility, e.g.: EV wiring charging network development Scaling
Slide 7: Good growth and margin improvement
Good growth and margin improvement Half year 2022 results €1,418M 6.9% (HY’21: €1,276M) Net Revenue Organic Net Revenue growth1) €133M 9.3% (HY’21: €116 M) (HY’21: 9.1%) Operating EBITA Operating EBITA margin 13.3% €283M (HY’21: 14.3%) (HY’21: €368M) Net Working Capital Net Debt % 2021 figures have
Slide 8: Accelerated revenue and backlog growth
Accelerated revenue and backlog growth Net Revenues and Organic Growth1) Operating EBITA (margin)2) € millions, % € millions, % 8.1% 10.7% 6.3% 4.8% 5.3% 5.6% 9.5% 9.4% 9.1% 9.3% 652 688 729 60 70 64 68 644 636 58 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Days Sales Outstanding and
Slide 9: Arcadis has significantly strengthened its balance sheet and de-levered
Arcadis has significantly strengthened its balance sheet and de- levered over past 2 years on the back of strong performance H1 H2 Free Cash Flow profile with the H1 22A YoY EBITDA increase offset by higher cash outflow following 243 largest proportion of cash coming in increase in unbilled receivab
Slide 10: Arcadis acquires IBI Group
Arcadis acquires IBI Group July 2022
Slide 11: IBI Group: highly attractive technology-driven design firm with synergy potential
IBI Group: highly attractive technology-driven design firm with significant synergy potential to Arcadis Description of IBI Group €664M Project example for IBI INFRASTRUCTURE • Technology-driven design firm founded in 1974, Canada Creating vibrant, technology C$19.5 driven environments Cash consider
Slide 12: Acquisition of IBI Group: Fully aligns with our strategy
Acquisition of IBI Group: Fully aligns with our strategy Development of new Highly complementary Strengthened position in Enhances capabilities and digitally enabled client combination strengthening highly attractive offering in Places solutions through the all Arcadis GBAs in Canadian market creati
Slide 13: Creating a new 4th GBA to Maximize Our Digital Impact
Creating a new 4th GBA to Maximize Our Digital Impact Role of the 4th GBA Intelligence GBA Digital Client Solutions Innovation Driving Efficiency Recurring Revenue and Productivity Attractive Suite of Combined Client Solutions Resilience Places Mobility New fourth GBA: Intelligence © Arcadis 2022 |
Slide 14: Our Combined GBA Structure Will Allow Clients to Benefit
Our Combined GBA Structure Will Allow Clients to Benefit from Our High Complementarity and Strengthens our Position in North America Resilience Places Mobility Intelligence APAC 15% EMEA 48% ~€2.6bn ~38% ~37% ~22% ~3% Americas 37% • Climate resilience 41% • Design & engineering 34% • Intelligent rai
Slide 15: Appendix
Appendix
Slide 16: IBI group financials: Strong Track Record of Growth
IBI group financials Strong Track Record of Growth and a Diversified Revenue Profile 2021A Net Revenues Sector Leading Financial Profile 15.3% 15.5% 15.3% C$661m Intelligence Buildings UK & Other backlog1 18% 50% International C$444m 11% United C$393m States C$377m Infrastructure 26% Canada 32% 63%
Slide 17: Resilience: Solid growth and strong financial results
Arcadis Resilience Performance Solid growth and strong financial results Resilience CASE STUDY 42% of net revenues in € millions Half year Second quarter Period ended 30 June 2022 2022 2021 change 2022 2021 change Net revenues 589 513 14.9% 308 261 17.8% Organic net revenue growth (%)1) 7.7% 8.5% Op
Slide 18: Places: Good revenue growth for second quarter, improved margin
Arcadis Places Performance Good revenue growth for second quarter, improved margin Places CASE STUDY 33% of net revenues in € millions Half year Second quarter Period ended 30 June 2022 2022 2021 change 2022 2021 change Net revenues 463 447 3.7% 235 228 3.1% Organic net revenue growth (%)1) 3.1% 5.1
Slide 19: Mobility: Very strong results driven by larger markets
Arcadis Mobility Performance Very strong results driven by larger markets Mobility CASE STUDY 25% of net revenues in € millions Half year Second quarter Period ended 30 June 2022 2022 2021 change 2022 2021 change Net revenues 366 317 15.4% 187 155 20.2% Organic net revenue growth (%)1) 10.2% 11.1% O
Slide 20: Generating 16% EPS growth
Strong operational performance Generating 16% EPS growth In € millions H1 2022 H1 20213) change EBITA 130 113 14% Amortization & impairment EBIT -5 125 -6 108 16% 14% EBITA growth Net finance expense -6 -13 Taxes on income -34 -20 Effective income tax rate1) 28% 20% €93 Exp. credit gain (loss) share
Slide 21: Sound cash management supporting seasonal FCF generation
Sound cash management supporting seasonal FCF generation In € millions 2022 20211) EBITDA 178 165 • Lower Net Working Changes in net working capital -113 -61 starting point 2022 has Changes in other working capital led to higher cash -17 17 outflow compared to Tax paid -21 -33 2021 Net interest paid
Slide 22: 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