Arcadis Nv · EURONEXT:ARCAD
Arcadis Nv — FY2021 Earnings Presentation
22 slides from Arcadis Nv's earnings presentation, Feb 17, 2022
Slide 1: Healthy organic growth, margin improvement and excellent cash flow
Healthy organic growth, margin improvement and excellent cash flow Arcadis Q4 and full year results 17 February, 2022
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: Part 1: 2021 Performance key messages
Part 1 2021 Performance key messages Peter Oosterveer | Chief Executive Officer
Slide 4: Sustained growth, strong financial performance, and on track to deliver strategic targets
Sustained growth, strong financial performance, and on track to deliver strategic targets Market environment 2021 Full Year Results Strategic progress • Strong market conditions in public • Organic revenue growth of 3.5%, • Strengthening balance sheet and private sector 4.2% excluding Middle East •
Slide 5: Record high backlog of €2.2 billion
Record high backlog of €2.2 billion Backlog Net Revenue Recent Key Client wins € millions 2,203 2,065 2,041 2,006 1,994 Providing safe Delivering Global Reducing traffic and clean land capital program congestion in 2017 2018 2019 2020 2021 and water Sydney 5.1% 1.04 US Army Corps Of Global financial
Slide 6: Q4 and full year 2021 results
Part 2 Q4 and full year 2021 results Virginie Duperat | Chief Financial Officer
Slide 7: Excellent cash flow and margin improvement
Excellent cash flow and margin improvement €2,565M 3.5% (€2,494M) (4.2% excluding Middle East) Net Revenue Organic Net Revenue growth 9.6% €234M (9.1%) (€324M) Operating EBITA Free Cash Flow margin1) €168M 5.1% (€326M) (5.1%) Net Debt Organic Backlog growth 1) Figures restated in accordance with IAS
Slide 8: Sustained revenue growth
Sustained revenue growth Net Revenues and organic growth € millions, % 5.7% 4.1% 4.0% 0.5% • Organic growth improved to 4.0%, or 5.3% -3.3% excluding the Middle East 632 644 636 652 603 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Operating EBITA (margin)1,2) € millions, % 10.7% 10.4% 9.2% 9.1% 9.5% • Operating ma
Slide 9: Americas: Sustained growth and strong financial results
Americas Sustained growth and strong financial results Full year 34% of total net revenues 2021 20201) Change Gross revenues 1,372 1,370 0% Net revenues 884 876 1% Organic growth (%) 5.2% Operating EBITA 97 102 -5% Operating EBITA margin 11.0% 11.6% Fourth quarter 2021 2020 Change Gross revenues 364
Slide 10: Europe & Middle East: Excellent performance UK, improvements Continental Europe
Europe & Middle East Excellent performance UK, improvements Continental Europe Full year 47% of total net revenues 2021 2020 Change Gross revenues 1,448 1,339 8% Net revenues 1,201 1,119 7% Organic growth (%) 5.6% Operating EBITA 121 88 38% Operating EBITA margin 10.1% 7.9% Fourth quarter 2021 2020
Slide 11: Asia Pacific: Strong performance Australia, COVID-19 impact Asia except China
Asia Pacific Strong performance Australia, COVID-19 impact Asia except China Full year 13% of total net revenues 2021 20201) Change Gross revenues 362 358 1% Net revenues 334 323 3% Organic growth (%) 2.0% Operating EBITA 27 34 -21% Operating EBITA margin 8.0% 10.5% Fourth quarter 2021 2020 Change G
Slide 12: CallisonRTKL: Repositioning the business
CallisonRTKL Repositioning the business Full year 6% of total net revenues 2021 20201) Change Gross revenues 196 236 -17% Net revenues 146 176 -17% Organic growth (%) -15.2% Operating EBITA 1 1 -12% Operating EBITA margin 0.8% 0.8% Fourth quarter 2021 2020 Change Gross revenues 52 51 2% Net revenues
Slide 13: Strong performance generating 35% EPS growth
Strong performance generating 35% EPS growth In € millions1) 2021 2020 change EBITA 237 221 8% Amortization & impairment2) EBIT -11 226 -141 80 8% EBITA growth Net finance expense -19 -27 Taxes on income -52 -55 Normalized income tax rate 25% 33% €175 Income from associates 11 1 Expected Credit Loss
Slide 14: Disciplined balance sheet management
Disciplined balance sheet management Net Working Capital (%)1) Days Sales Outstanding € millions, % Days 16.9% 16.6% 15.1% 12.6% 10.7% 543 617 88 80 88 521 66 63 414 381 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Free Cash Flow Net Debt (€ million) (€ million) 324 606 234 149 226 168 98 97 20
Slide 15: Capital allocation: return to shareholders combined with investment in growth
Capital allocation: return to shareholders combined with investment in growth Return to shareholders Investment in growth Through organic growth and M&A • Intend to distribute a dividend of €0.70 per share (+36% vs. • Annual capex of €40-60 million, to invest in Digital and 2020) Workplace • Our str
Slide 16: On track to deliver targets
Part 3 On track to deliver targets Progress on strategic framework Peter Oosterveer | Chief Executive Officer
Slide 17: Maximizing Impact: Strategy 2021-2023
Maximizing Impact: Strategy 2021-2023 Financial targets Non-financial targets Organic Net Revenue Growth On track Voluntary staff turnover Needs attention Mid-single digit < 10% Margin On track Staff engagement On track Operating EBITA margin >10% Improving annually Net Working Capital & DSO On trac
Slide 18: Non-financial targets – performance in 2021
Non-financial targets – performance in 2021 People ESG performance 14.9% Voluntary turnover < 10% • Headcount: 29k (+5%) 38% • Commitment to accelerate the -21% ‒ Global Excellence Centers: +13% (2020: 38%) transition to a Net Zero world: (31K CO2 / FTE) Carbon footprint for Diversity: women ‒ Our t
Slide 19: Launch of the Global Business Areas: Resilience, Places and Mobility
Part 4 Launch of the Global Business Areas: Resilience, Places and Mobility Bringing the best of our collective expertise Peter Oosterveer | Chief Executive Officer
Slide 20: Global Business Areas to better serve the needs of our growing client base
Global Business Areas to better serve the needs of our growing client base • Address client needs Resilience Places Mobility • Scale sustainable 41% of Net Revenues 34% of Net Revenues 25% of Net Revenues solutions and digital innovation • Drive profitable growth through operational efficiencies: Op
Slide 21: Summary
Summary • Continued revenue growth and improved operating margin • Accelerating the transition to a Net Zero world • Continued progress in implementing our strategy of focus and scale, creating profitable growth • Strong foundation, record backlog and a sustained pipeline of opportunities provides c
Slide 22: comme OM Odile,
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