Arcadis Nv · EURONEXT:ARCAD
Arcadis Nv — FY2023 Earnings Presentation
24 slides from Arcadis Nv's earnings presentation, 2024
Slide 1: Record quarter performance and delivery on 2021-2023 targets
Record quarter performance and delivery on 2021- 2023 targets Arcadis Q4 & FY 2023 Results
Slide 2: Strategic and operational review
PART 1 Strategic and operational review Alan Brookes CEO 2
Slide 3: Key highlights of full year 2023
Key highlights of full year 2023 • Achieving all key targets set for 2021-2023 Strategy “Maximizing Impact” • Continued strong client demand driving record revenues, order intake and margin • Successful integration of Arcadis IBI and Arcadis DPS driving revenue and cost synergies • New strategy 2024
Slide 4: Data driven approach to model flood risk
In end market Climate adaptation how Arcadis differentiates Data driven approach to model flood risk Clients’ challenge = Securing investments for flood protection measures Arcadis solution = Demonstrate the economic and environmental benefits of flood protection schemes through risk modelling Impac
Slide 5: Market leading water and remediation solutions
In end market Water Optimization how Arcadis differentiates Market leading water and remediation solutions Clients’ challenge = Remediating contaminated land and providing clean and reliable water supply Arcadis solution = Digitally enhanced water management services and nature-based solutions Impac
Slide 6: Integration now finalized - driving synergy wins
Integration now finalized - driving synergy wins Operational and commercial integration Digital Transport Management: Drive sustainable design outcomes Architecture & Urbanism providing real time awareness of traffic for facilities of large clients in the US conditions state-wide and Europe set-up I
Slide 7: Delivered on targets set
Delivered on targets set Financial Targets* Non-financial Targets Organic Net Revenue Growth: mid-single digit Voluntary Staff Turnover: <10% CAGR 7.6% 11.7% staina le Operating EBITA Margin: >10% in 2023 Staff Engagement1): improving annually s l ti ns 10.4% +52 eNPS ing Net Working Capital: <15% |
Slide 8: Strong platform to capture future opportunities
Strong platform to capture future opportunities Leading Global Scalable Complementary Talented positions in key business GEC service workforce markets model platform offering © Arcadis 2024 | Arcadis Q4 & FY 2023 Results 8
Slide 9: Our 2024-2026 Strategy: Accelerating a planet positive future
Our 2024-2026 Strategy: “Accelerating a planet positive future” Sustainable project choices Digital and human innovation Powered by our people • Deliberate focus on projects • Leveraging our Digital • Investing in a Skills that contribute to our capabilities externally for Powered Organization strat
Slide 10: Our 2024-2026 Strategy: Targets
Our 2024-2026 Financial Non-financial Strategy: Targets Targets* Targets Organic Net Revenue Net Zero Objective Growth Scope 1 and 2 reduction Mid – high single digit of 70% GHG emissions Strategic focus areas over the cycle by 2026 Sustainable project choices Operating EBITA Margin Net Zero Objecti
Slide 11: Financial results
PART 3 Financial results Virginie Duperat-Vergne CFO © Arcadis 2024 | Arcadis Q4 & FY 2023 Results 11
Slide 12: Record fourth quarter, solid foundation for future performance
Record fourth quarter, solid foundation for future performance Fourth quarter results Net Revenues Order Intake • Good revenue growth key +9% YoY to: +18% YoY to: markets US and Europe slightly €941M €1,028M offset by deliberate project choices Arcadis DPS and China Organic growth1): 6.5% market con
Slide 13: Strong performance across key metrics
Strong performance across key metrics Full year 2023 results • Net Revenues +25% YoY €3.8B 9.0% • Operating EBITA: +33% YoY (2022: €3.0B) Organic Net Net Revenue Revenue growth1) • Strong margin improvement while successfully integrating acquisitions 10.4% 56 days • Investments in operational (2022:
Slide 14: Margin improvement across the business
Margin improvement across the business Full year 2023 results Operating margin bridge, full year 2022-2023 © Arcadis 2024 | Arcadis Q4 & FY 2023 Results 14
Slide 15: Excellent performance across the board: Resilience
Excellent performance across the board Global Business Areas: Resilience 36% of net revenues Full year Fourth quarter • Continued strong demand and performance € millions | period ended 31 Dec. 2023 2023 2022 change 2023 2022 change with outstanding results North America • Significant wins in Water
Slide 16: Good revenue growth and improved margin: Places
Good revenue growth and improved margin Global Business Areas: Places 40% of net revenues Full year Fourth quarter • Solid revenue and order intake growth € millions | period ended 31 Dec. 2023 2023 2022 change 2023 2022 change North America and Europe offset by deliberate project choices Net revenu
Slide 17: Continued strong client demand, underlying margin improvement: Mobility
Continued strong client demand, underlying margin improvement Global Business Areas: Mobility 22% of net revenues Full year Fourth quarter • Very strong revenue growth across all key € millions | period ended 31 Dec. 2023 2023 2022 change 2023 2022 change markets: US, Europe and Australia • Multiple
Slide 18: Focus on cross GBA collaboration to provide greater digital value
Focus on cross GBA collaboration to provide greater digital value to clients Global Business Areas: Intelligence 3% of net revenues Full year Fourth quarter • Strong revenue growth paralleled by order intake from large Key Clients, mostly North € millions | period ended 31 Dec. 20233) 2023 2022 chan
Slide 19: Cost synergies on track and driving operational optimization
Cost synergies on track and driving operational optimization Identified and achieved cost synergies Design, planning and program management support for the 2023 2024 and beyond New Hospital Program in UK Operations Rationalization of overhead, €1M €8M insurance, support Technology & scale benefits I
Slide 20: Balanced capital allocation framework
Balanced capital allocation framework 2023 Results 2024-2026 Targets Return to shareholders: Dividend: 30 – 40% Proposed dividend: €0.85, Dividend payout % of Net Additional returns when 34% of NIfO (Target: 30 – 40%) Income from Operations (NifO) appropriate Further strengthening Leverage: 1.7x Tar
Slide 21: Wrap up
PART 4 Wrap up Alan Brookes CEO 21
Slide 22: Concluding remarks
Concluding remarks Record year, targets delivered: Positive outlook, clear priorities: • Record performance • Strong market conditions and Book to Bill, • Key strategic targets delivered high-quality pipeline • Integration finalized, synergies materializing • New strategy 2024-2026 presented and wel
Slide 23: Q&A
ARCADIS PART 5
Slide 24: Disclaimer
Disclaimer Statements included in this presentation that are not The forward-looking statements are based upon our current historical facts (including any statements concerning expectations, plans, estimates, assumptions and beliefs that investment objectives, other plans and objectives of involve n