Arcadis NV · EURONEXT:ARCAD
Arcadis NV — H1 2019 Earnings Presentation
23 slides from Arcadis NV's earnings presentation, Jul 25, 2019
Slide 1: First half year results 2019
First half year results 2019 Organic growth, continued solid results and sustained cash flow improvement Peter Oosterveer CEO Sarah Kuijlaars CFO Amsterdam, 25 July 2019
Slide 2: Disclaimer
FIRST HALF YEAR RESULTS 2019 Disclaimer Statements included in this presentation The forward-looking statements are based that are not historical facts (including any upon our current expectations, plans, statements concerning investment estimates, assumptions and beliefs that objectives, other plan
Slide 3: Improving stormwater quality and creating recreational space in Los Angeles
CITY OF LOS ANGELES| U.S.A. Improving stormwater quality and creating recreational space in Los Angeles Peter Oosterveer CEO
Slide 4: Another solid quarter
FIRST HALF YEAR RESULTS 2019 Another solid quarter ▪ Continued solid results led by strong performance in North America ▪ Europe & Middle East: strong performance Netherlands, one less working day, lower results France ▪ Measures to improve results in Asia, Middle East and Latin America start to yie
Slide 5: Improvement on all key financial metrics
FIRST HALF YEAR RESULTS 2019 Improvement on all key financial metrics ▪ Organic net revenue growth of 2% ▪ Operating EBITA margin improved to 7.6% (7.2%*) ▪ EBITDA up 12% to €112 million (€100 million*) ▪ NWC% improved to 16.2% (18.8%*) ▪ Sustained free cash flow improvement leading to a leverage ra
Slide 6: Non-core clean energy assets Brazil (ALEN)
FIRST HALF YEAR RESULTS 2019 Non-core clean energy assets Brazil (ALEN) Divestment process Operational performance Divestment ▪ Information memorandum ▪ Gas Verde (gas-to-gas process led by prepared and shared with plant) certified and Itaú Bank potential buyers operational, 70% of volume ▪ Intentio
Slide 7: Creating a simulation environment, including A.I. models, to test autonomous vehicles
UKGOVERNMENT Creating a simulation environment, including A.I. models, to test autonomous vehicles Sarah Kuijlaars CFO
Slide 8: Improved metrics
FIRST HALF YEAR RESULTS 2019 Improved metrics Half year Second quarter ▪ Organic net revenues growth in € millions * 2019 2018 change 2019 2018 change driven by North America Gross revenues 1,707 1,586 8% 878 819 7% Net revenues 1,275 1,220 5% 647 621 4% ▪ Impact of one less working day Organic grow
Slide 9: Sustained improvement
FIRST HALF YEAR RESULTS 2019 Sustained improvement Net Revenues and organic growth Days Sales Outstanding € millions, % Days 3% 4% 4% 700 2% 2% 2% 100 680 660 95 640 620 90 600 85 580 560 80 540 520 599 621 613 607 628 647 75 94 91 89 80 86 82 500 -20% 70 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q1'18 Q2
Slide 10: Strong cash flow generation
FIRST HALF YEAR RESULTS 2019 Strong cash flow generation in € millions 2019 2018 ▪ Strong cash flow second quarter 2019 of €60 million EBITDA 112 100 (Q2 2018: €54 million) Changes in net working capital -45 -61 ▪ Seasonal pattern in net working capital development Changes in other working capital -
Slide 11: Continued strengthening of the balance sheet
FIRST HALF YEAR RESULTS 2019 Continued strengthening of the balance sheet Free cash flow EBITDA (%) € millions € millions, % 160 8.8% 120 8.5% 8.5% 140 149 115 8.2% 09% 120 110 7.9% 100 112 105 08% 98 80 100 104 60 08% 95 100 100 100 40 90 8 20 85 07% 0 80 07% -28 -6 -20 75 -40 70 06% H1'17 FY'17 H1
Slide 12: Americas - stronger across all metrics
FIRST HALF YEAR RESULTS 2019 Americas - stronger across all metrics Half year Second quarter LOSANGELES |U.S.A. 33% of net revenues 2019 2018 change 2019 2018 change Getting L.A. Gross revenues 679 551 23% 360 288 25% Metro ready for Net revenues 426 365 17% 222 189 18% the 2028 Organic growth % 10%
Slide 13: Europe & Middle East - strong performance in the Netherlands
FIRST HALF YEAR RESULTS 2019 Europe & Middle East - strong performance in the Netherlands Half year Second quarter RIJKSWATERSTAAT | THE NETHERLANDS 45% of net revenues 2019 2018 change 2019 2018 change Widening of the Gross revenues 692 708 -2% 345 360 -4% Net revenues 574 586 -2% 283 294 -4% Twent
Slide 14: Asia Pacific - improvement in Asia and strong margins Australia
FIRST HALF YEAR RESULTS 2019 Asia Pacific - improvement in Asia and strong margins Australia Half year Second quarter HONG KONG 13% of net revenues 2019 2018 change 2019 2018 change Consulting at the Gross revenues 188 186 1% 98 98 -1% world's longest Net revenues 165 164 1% 86 84 2% sea crossing Or
Slide 15: CallisonRTKL - new leadership
FIRST HALF YEAR RESULTS 2019 CallisonRTKL - new leadership Half year Second quarter FEDERAL AGENCY | VIRGINIA,U.S.A. 9% of net revenues 2019 2018 change 2019 2018 change Revamping 2.4 Gross revenues 148 141 5% 76 73 4% million square Net revenues 111 105 5% 57 54 4% feet Organic growth % -1% -3% EBI
Slide 16: Strong performance on all key financial metrics
FIRST HALF YEAR RESULTS 2019 Strong performance on all key financial metrics ▪ Solid results led by strong performance in North America ▪ Sustained improvement on all key financial metrics ▪ Strong free cash flow leading to a leverage ratio of 1.6 ▪ Healthy business outlook for the second half 2019
Slide 17: Using data analytics and our asset knowledge for regeneration of business district
SHANGHAI | CHINA Using data analytics and our asset knowledge for regeneration of business district Peter Oosterveer CEO
Slide 18: On track to deliver on our 2018-2020 strategic priorities
FIRST HALF YEAR RESULTS 2019 On track to deliver on our 2018-2020 strategic priorities Strategic priorities Proof points H1 2019 ▪ Embedding cultural adjustments People & ▪ People First resulting in improved voluntary turnover Culture ▪ Commercial awareness resulting in increased selectivity, focus
Slide 19: Global megatrends strong fundamental for sustainable growth
FIRST HALF YEAR RESULTS 2019 Global megatrends strong fundamental for sustainable growth Megatrends Significant potential in improving Growth opportunities quality-of-life in cities; e.g. commute time ↓15-20% xxxx The worlds most influential URBANIZATION SUSTAINABILITY & companies committed to 100%
Slide 20: Strategic priorities 2019
FIRST HALF YEAR RESULTS 2019 Strategic priorities 2019 ▪ Further margin improvement − Rigorous adherence to actions identified for the Middle East and Asia to improve performance − Leverage of “Make Every Project Count”, growth of the Global Excellence Centers ▪ Revenue growth − Further build on the
Slide 21: Arcadis. Improving quality of life.
Arcadis. Improving quality of life.
Slide 22: IFRS 16 impact
FIRST HALF YEAR RESULTS 2019 IFRS 16 impact P&L impact Cash flow impact H1 2019 H1 2019 € million, % IAS 17 IFRS 16 Delta € million IAS 17 IFRS 16 Delta Gross revenues 1,707 1,707 - Free cash flow 8 44 36 Net revenues 1,275 1,275 - EBITDA 112 149 37 EBITDA margin 8.8% 11.7% 2.9% Depreciation -22 -57
Slide 23: Significant decrease overdue receivables (>120 days)
FIRST HALF YEAR RESULTS 2019 Significant decrease overdue receivables (>120 days) Ageing of Gross Receivables and Net Working Capital (%) ▪ Overdue receivables (>120 days) reduced by €28 million YoY driven by cash collection 643 605 597 North America, Middle East and Brazil 131 127 103 >120 86 102 8