Arcadis Nv · EURONEXT:ARCAD
Arcadis Nv — H1 2023 Earnings Presentation
23 slides from Arcadis Nv's earnings presentation, Jul 27, 2023
Slide 1: Continued strong client demand and improved operational performance
Continued strong client demand and improved operational performance Arcadis Second Quarter & Half Year 2023 Results Analyst Conference Call, July 27th, 2023 Alan Brookes CEO Virginie Duperat-Vergne CFO Christine Disch IR Director
Slide 2: Part 1: Q2 and Half Year 2023 Results
Part 1 Q2 and Half Year 2023 Results Alan Brookes | Chief Executive Officer 2
Slide 3: First 50 days
First 50 days Key Client Integration On track to Strategy engagement Arcadis IBI & deliver strategic development Arcadis DPS targets set for and feedback 2023 Save the date Capital Markets Day 16 November, London © Arcadis 2023 | Arcadis Q2 and Half Year 2023 Results 3
Slide 4: Strong results from continued client demand and improved operational performance
Summary of results Strong results from continued client demand and improved operational performance Second quarter 2023 results Net Revenue Order intake Net Backlog at: Operating EBITA Voluntary Turnover2) +30% (YoY) to: +36% (YoY) to: margin1) improved to: €945M €976M €3,249M 9.8% 12.6% (last year
Slide 5: Significant wins in the quarter accelerate revenue synergies
Significant wins in the quarter accelerate revenue synergies and add to already strong pipeline Places, Resilience, Arcadis DPS Places, Arcadis DPS Places, Arcadis IBI Design of the US’ largest solar Project management & execution Masterplanning for expansion of panel manufacturing facility resource
Slide 6: Global Business Areas: Resilience
Global Business Areas: Resilience Strong momentum, growth and outlook driven by continued high client demand Second quarter 2023 results QUARTER SUMMARY PROJECT EXAMPLE Net Revenues (Q2, yoy) • Environmental Restoration: demand remains strong with digital innovation as a differentiator (green +13% a
Slide 7: Global Business Areas: Places
Global Business Areas: Places Delivering on repositioned portfolio while successfully integrating acquisitions Second quarter 2023 results QUARTER SUMMARY PROJECT EXAMPLE Net Revenues (Q2, yoy) • US stimulus attracts newcomers to industrial manufacturing market; we provide support with “First Time +
Slide 8: Global Business Areas: Mobility
Global Business Areas: Mobility Increased demand driving growing pipeline of opportunities Second quarter 2023 results QUARTER SUMMARY PROJECT EXAMPLE Net Revenues (Q2, yoy) • Connected Highways and Intelligent Rail: growing innovation and complexities are +9% at €204M addressed with our (data) solu
Slide 9: Global Business Areas: Intelligence
Global Business Areas: Intelligence Differentiating through combining digital innovation and engineering services Second quarter 2023 results QUARTER SUMMARY PROJECT EXAMPLE Net Revenues (Q2) • Solid demand for Traffic, Transit and Travel solutions from large Key Clients €23 million • Enterprise Dec
Slide 10: Part 2: Financial Results
Part 2 Financial Results Virginie Duperat-Vergne | Chief Financial Officer 10
Slide 11: Improved performance across key metrics
Improved performance across key metrics Half year 2023 results €1,886M 10.6% • Continued strong growth: Net Revenues +33% year on year • Currency impact: -1.1% (US and C$) (H1’22: €’1,418M) Net Revenue Organic Net Revenue growth1) • Strong growth at Arcadis IBI and Arcadis DPS • Operating EBITA: +40
Slide 12: Order intake exceeds revenue for H1, book to bill of 1.08
Order intake exceeds revenue for H1, resulting in book to bill of 1.08 Order Intake, Net Revenue and Book-to-Bill € millions • Record net revenue levels in H1‘23 from strong organic growth1) and acquisitions Arcadis IBI and Arcadis DPS 1.11 1.10 1.08 1.04 1.06 0.99 • Record order intake in H1‘23 res
Slide 13: Resilience: Excellent performance across the board
Resilience Excellent performance across the board 36% of net revenues Half year Second quarter • Strong revenue and backlog growth € millions | period ended 30 June 2023 2023 2022 change 2023 2022 change driven by strong momentum • Backlog development in the quarter Net revenues 678 589 15% 346 308
Slide 14: Places: Good revenue growth and improved margin
Places Good revenue growth and improved margin 40% of net revenues Half year Second quarter • Good revenue and backlog growth € millions | period ended 30 June 2023 2023 2022 change 2023 2022 change driven by North America, UK and Continental Europe Net revenues 760 463 64% 372 235 58% • Selective o
Slide 15: Mobility: Continued strong client demand, underlying margin improvement
Mobility Continued strong client demand, underlying margin improvement 22% of net revenues Half year Second quarter • Good order intake momentum driven € millions | period ended 30 June 2023 2023 2022 change 2023 2022 change by North America and Continental Europe Net revenues 403 366 10% 204 187 9%
Slide 16: Intelligence: Focus on cross GBA collaboration
Intelligence Focus on cross GBA collaboration to provide greater digital value to clients 2% of net revenues Half year Q2 • Good synergy wins with Key Clients € millions | period ended 30 June 2023 2023 2023 and revenue growth from digital solutions and software products Net revenues 45 23 • Investm
Slide 17: Generating 10% EPS growth year on year
Strong operational performance Generating 10% EPS growth year on year In € millions H1 2023 H1 2022 change EBITA 169 130 30% Amortization & impairment (including PPA effect) -19 -5 EBIT Net finance expense 150 -27 125 -6 19% 30% EBITA growth Taxes on income -43 -34 Effective income tax rate1) 35% 28
Slide 18: Strong growth and seasonality reflected in FCF
Strong growth and seasonality reflected in FCF Free Cash Flow bridge H1’22 – H1‘23 € millions • Free Cash Flow generation in line with seasonality and impacted by: • Financing of accelerated growth • Changes in US tax law • FCF in the quarter of €-26 million, in line last year’s €41 million when exc
Slide 19: Integration of Arcadis IBI and Arcadis DPS
Integration of Arcadis IBI and Arcadis DPS Cost synergies identified already above target, delivery on track Cost synergies of €20 million currently identified, above target of €18 million initially communicated Cost synergies identified to be delivered by end of 2024: Workplace €20M Technology Inte
Slide 20: Wrap up
Part 3 Wrap up Alan Brookes | Chief Executive Officer 20
Slide 21: Key takeaways
Key takeaways Strong results, integration on track Positive outlook, clear priorities – Excellent performance, continued strong – Strong pipeline demand ▪ Well positioned to capitalize on significant ▪ Global Operating Model continues to drive market opportunities revenue growth and margin improveme
Slide 22: Q&A
Q&A
Slide 23: 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