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BUREAU VERITAS
2015 STRATEGIC PLAN
Tuesday, September 20, 2011
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SELECTED BUSINESS HIGHLIGHTS
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EXPANDING OUR VALUE IN THE
SUPPLY CHAIN
Oliver Butler
Execut ive Vice President, Consum er Produc t Services
FOCUS ON CPS
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A global leader with a buy and build DNA
Global Leader in Toys/Hardlines
Number 2 in Softlines
Leadership position in US retail
Strong gains in EU retail
Strategic leader in quality
management information services
Strong growth in Electrical andElectronics
9,100 headcount
Europe
13%Asia
78%
Americas
9%
Textiles,
Garments
& Softlines
39%
Toys &
Hardlines
38%
Food /
Cosmetics1%
Electrical &
Electronics
22%
* As at June 30, 2011
Revenue breakdown*
Technicare /
QATC
98 01 03 04
AMTAC /ecb-
ONLINE
ADT (TW) / CurtisStraus / Actions
Mesures / MTLUK
MTL / LCIE
05
INNOVA /
Pakistan
08
GSC /CODDE / SPD /
Thurmelex /Furth
09
ACTS
10
NST
06 07
Haztec Kotiti VN /
ADT SH
11
Global platform built from acquisitions
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2007-2011 Achievements
Hardl ines
Toys
Soft l ines
Innovative solutions
Network expansion
Electr ical and
Electron ics
Renewables capabilities
Leadership in WiFi/WiMAX
Inspect ion,
Audi t and
Consul t ing
Significant growth
In format ion
Management
Services
Significant development
Lean
Management
World-class operational
performance
Client Loy al ty Retention
384m
LTM June 20112006
>10% organic growth p.a.
+470bps margin improvement
+50% headcount
#1 worldwide
22.1%
26.8%
26.8%Revenues Adj. Operating Margin
248m
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Supply Chain OptimizationGain ing c redib i l ity thro ugh benchmark per formance
Faster
Cheaper
Better
Helping our clients to succeed
CPS ServiceImprovement (08-11)
Clients benefits
Cycle time improved by 50%
Offset inflation impact
through productivity gains
Service quality99.9%
Service delivery98% +
Strengthening clientrelationship
Reduced logistics costs
Reduced product costs
Increased supply chain
productivity
Mitigated risk
Technical support
Global assistance
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Moving from a narrow scope withinthe supply chain
PostShipment &After Sales
ProductionSupplierAssessment
RequirementsManagement
Pre-Production
Post-Production
Testing Testing
Inspection
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to a more comprehensive offeringincluding decision support
CountryEvaluation
SpecificationDevelopment
Eco-design
Training
DesignEvaluation
Factory Assessment
Mill ImprovementProgram
Comparison Test
Packaging Test
Risk Assessment Matrix
Life Cycle
Process ControlPlan Development
Inspection
Process ControlPlan Audit
ProductDisposition
Loading Check
Technical FileReview
Unloading Check
In-Store Testing
Failure & ReturnsAnalysis
Business Reviewand ContinualImprovement
PostShipment &After Sales
ProductionSupplierAssessment
RequirementsManagement
Pre-Production
Post-Production
Testing Testing
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Supply China quality management solutionsto attract and retain customers
Market Adviso ry
Services
Suppl ier
Validation
Services
Product Quali ty
Services
Qual i ty
Management
Outsourc ing
Sourcing trends & hotspot management
Regulatory requirements and compliance plan
Supplier vetting and traceability
Factory Audits, Quality Benchmarks
Reducing failures & returns
Optimizing cost of quality & time to market
Supply chain quality management services
Process reengineering
Cost efficiency
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Facing a growing but changing business
$10bn market+5% growth p.a. 2010-15
Source: Bureau Veritas, McKinsey
What do we see! Shifts in decision authority
Supply chain cost management
Sourcingshifts within Asia
Food safety
Technology innovation
Environmental sustainability
Intermediaries
Brande
d
manufacturers
Retailers / sourcing offices
Brands
Trading companies
Full service manufacturers
Factories
Food /
Cosmetics
48%
Textiles /
Softlines
10%Hardlines
& Toys
14%
28%
Electrical& Electronics
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Where are we going: 2012-2015 priorities
Global player in Food
Global player in E&E
Active in all key markets
Market leader in softlines/ IAC
Leader in supply chain quality management
EU New Toy Safety Directive
RTP and Food Safety Modernization Act in USA
Expand partnerships and alliancesOptimise all channels
Accelerate market penetration
Ambition
Growth
initiatives
2011 portfolio
2015 portfolio
Food / Cosmetics
1%
Hardlines& Toys
38%
Textile & Softlines
39%
E&E
22%
Food / Cosmetics
9%
Hardlines
& Toys
30%
Textile & Softlines
35%
E&E
26%
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Organizat ional
Effect iveness
&
Regional
Opt imizat ion
Architecture for continued profitable growth
Outsourcing
Food / E&E
Asia + China Growth
Continuous Improvement
Supply Chain
Solutions
Maintaining
and Growing
the Base
WinGovernmentrelations &
Partnerships
Acquisition &Integration
Outsourcing Management
Executive Supply Chain Leadership
Client Supply Chain Quality Management
Solution
World Class Business & Technical Leadership
World Class Global Operations Network
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Wrap Up
1
2
3
4
5
The market growth opportunity is achievable
Organization is well positioned
Many growth initiatives already underway
Acquisition pipeline is healthy
Great team in place
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BUILDING A
SUSTAINABLE ELDORADO
Eduardo Camargo
Execut ive Vice President
Lat in America Zone
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580m people (8% of world population)
17 countries and only 2 languages
GDP: 80% of Mainland China
Brazil: the B of BRICs
30% of total population and 40% of total GDP
Strong economic recovery from crisis
Favorable economic scenario
15% of worlds oil reserves, large stock of
minerals, 25% of worlds arable land and 30%of world fresh water
40m people lifted out of poverty between 2002
and 2008
Commodities demand increase and huge
capital inflows pushing local currencies
A rising influence on world economy
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Positive economic forecasts and political stability
Booming demand for commoditiesand increased trading flows
Accelerating growth of domestic consumption
Strong investments in energy and infrastructure
Progressive privatizationof government verification services
Tighter QHSE regulations with need for third party verification
Fragmented competitionwith progressive consolidation
National content rules for large projects
Strong TIC growth drivers
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Capitalizing in the future on the assetsweve built
Leadership
Organizat ion
Innovat ion
Key accou nts
Growth plat form
M&A
track reco rd
Prominent position in Oil & Gas, Power & Utilities,
Minerals, Automotive and Certification
Long term partnerships with national key
accounts through customized solutions
Solid organization in key countries and promising
leaders
Regional technical & commercial centers of
excellence creating competitive barriers
Existing portfolio presenting significant growthopportunities
Successful integrations and relevant potential
acquisitions
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Revenues x 4 since 2006
~90m
Brazil development
Chile and Argentinadevelopment
Leadership andacquisitions
Expanded scopeNew growth areas
2006 2007 2008 2009 2010 LTM2011 PF
>350m
Average organic grow th
> 18% p .a.
f f
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A solid and diversified growth platformbuilt over time
1970 1980 1990 2000 2010
Marine and Oil& Gas Offshore
IndustrialServices
Oil & GasOnshoreIndustrialServices
Power andUtilities
IndustrialServices andCertification
MiningIndustrial andCommodities
Testing Services
Automotive andSupply Chain
InspectionServices
Environmental,Agri Food and
Oil & ChemicalsTestingServices
Infrastructureand PublicServices
Verification
Centers ofExcellence
Bureau Veritas footprint
HC 8,500
Offices 89
Labs 33
Revenues >350m
IndustryCommodities
Certification
GSITIVS
MarineConstruction
Brazil
Chile
Argentina
Peru
Mexico
ColombiaOthers
Three mainregions
L di iti i f t i Oil & G
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Engineering, Procurement and Construction
Conformity Assessment
Asset Integrity Management
Quality Assurance and Quality Control
Non Destructive Testing
HSE Testing and Suppliers Audits
Commissioning Supervision Technical Outsourcing
Leading position in fast-growing Oil & Gasand Power industries
Service offering
Surge of Oil & Gas Exploration &
Production (Offshore) and Powerproduction plants CAPEX
Need for risk management and
performance improvement with external
recognition
Increasing outsourcing of conformity
assessment activities
2012-2015 growth drivers
Keyaccounts
# 1 in Oil& Gas and Power Indus tr ies in Lat in Am erica
Cl ients int imacy and k now ledge of assets and proc essesUnrivaled local techn ical capabi l i t ies and references
P t b f d li
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Petrobras preferred supplier
Sales &Marketing
Brand &Recognition
TechnicalResources
Marine & offshore classification and certification
E&P Units, Sub sea & drilling systems technical consulting
Procurement services: Shop inspection, expediting and suppliers evaluation
Onshore & offshore Asset Integrity Management
Integrated solutions upstream & downstream and CAPEX & OPEX
Oil & fuel and HSE testing
A t f ll t t
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Brazil: biggest (ultra) deepwater opportunities
A center of excellence to support ourclients in the deepwater challenge
and record drilling depth
Pirauna
Marimba
Marlim SulRoncador
Roncador
Enchova
Tupi
2,629m
1977
2,825m
1983
3,318m
1988
3,230m
1994
3,759m
1999
4,343m
2003
7,000m
2007
Brazi l
Reserves: 26.1 bn boe
19 projects
US Golf of
Mexico
Malaysia
Angola
Congo
Ghana Nigeria
Our credentials
To come
Subsea Certification
To come
P55 Rig Classification
To come
P53 FPSO Classification
C tifi ti d i k t d i b
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Quality, Environment, Health & Safety
and Social Responsibility Management
Systems:
Accredited certification
2ndparty audits
Suppliers evaluation
Supply chain and services audits
HSE studies and outsourcing
Product certification Training
Certification: a dynamic market driven bylarge accounts and new schemes
Service offering
Development of customized solution to
large accounts
Suppliers evaluation
HSE management systems outsourcing
New specific schemes
Green House Gases / Energy Efficiency
Food / Forestry / Biofuels
2012-2015 growth drivers
Keyaccounts
# 1 Cert i f icat ion in Lat in America
Undis pu ted leadership in main cou ntr ies (Brazi l , Arg ent ina, Chi le and Mexico)
C diti th i L ti
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Oil & Chemicals Inspection and Testing:
Upstream Exploration & Production
Downstream fuel control (fixed and mobile labs)
Metals & Minerals Inspection and Testing:
Geochemical
Metallurgical
Trading
Agricultural Inspection and Testing
Laboratory Outsourcing
Commodities: our new growth area in LatinAmerica
Booming demand for commodities
Leading position in Chile minerals
market as zone hub
Increasing Oil & Gas and mining
Exploration & Production CAPEX
Development of national key accounts
with relevant synergies for industrial
services
2012-2015 growth drivers
# 2 in Commodi t ies in Lat in Amer ica
Leading pos i t ion in Chi le minerals m arket
Service offering
Keyaccounts
A t ti f i i
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Supply chain:
Transportation damage tracking
Distribution stock control
Insurance / Fleet Management :
On hireOff hire
Damage regulation
Statutory Verification Services
Emission control
Safety testing
Automotive: a new scope of services in afast growing market
Fleet Increase and renewal with
acceleration of insurance market
penetration
Increase of trade flows
Privatization of verification services
Geographical expansion
Replication of inspection services to
other consumer markets
Household appliances
Hardware
2012-2015 growth drivers
# 1 Au tom otive in Lat in America (acqu isi t ion of Au to Reg in Jan. 2011)
Preferred su pp l ier of main Insurers and car manu facturers
Keyaccounts
Service offering
2015 priorities for Latin America
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2015 priorities for Latin America
Double-d ig i t organic growth M&A con sol idat ion
Plat form org anizat ionCont inuou s per formance
improvement
Explore full potential of investments
in energy and infrastructure
Continue portfolio diversificationwith Commodities, Automotive and
Infrastructure
Grow recurrent business to mitigatecyclical risk
Pursue strategic acquisitions to fillthe gaps
Geographies
Portfolios
Consolidate benefits from scalability
Accelerate investment in IT/ISsystems
Laboratory automation
Reinforce centers of excellence
Retain and develop next generation
Shared service centers for supportfunctions
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RESILIENCE & INNOVATION
Philippe Donche-Gay
Chief Operat ing Off icer
FOCUS ON EUROPE
The Euro Party might be over ?
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The Euro Party might be over ?
Loss of momentum in Euro-zone economy
GDP slowdown, with risk of downturn
Increasing fiscal imbalance
Rising government bond yields
Weaker external demand
Source: International Monetary Fund, World Economic Outlook, June 2011
Still Europe remains a core TIC market
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Still, Europe remains a core TIC market
27 countries, 510 million inhabitants
#1 world economy
~25% of world GDP
~30% of Global Fortune 500
World largest trading power
Key sectors: agriculture, automobile,
aeronautics, energy, IT, tourism, finance
R&D spending: ~2% of GDP
HQ of many Normalization bodies
Proliferation of European Directives
Home base of all major TIC players
A regulatory Culture
European legislation published in 2010
o 698 Regulations
o 95 Directives
o 781 Decisions
A track record of steady profitable growth
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A track record of steady profitable growth
Organic and external development
1996 1998 2002 2006
I&F UK
Consumerproducts
2001 2007
SciroItalyCodde - France
2008
ECA - Spain
2009 2010
CEP
I&FGermany
Inspectorate - UK
2005
Casella - UKMTL - UKKW2 - NL
Nagtglass - NL
230 Offices7 900 Staff
Europe Network
110 Offices3 600 Staff
100 Offices4 100 Staff
to build a resilient portfolio
IVSConstruction
Industry
ConsumerProducts
Certification
Marine
Commodities
1.1Bn
1.5Bn
Pursuing profitable growth ambition by
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Pursuing profitable growth ambition by2015 with different regional priorities
Prof i tabi li ty Imp rovement Overall
Single Digi t Organic Growth
Operating margin
Finalize Integrations
Stabilize Management Refocus Portfolio
Conso l idat ion Transform at ion Rightsiz ing
Leverage Mass Market
Innovative Offerings Lean Initiative
Adapt to market demand
Leverage #1 position Revitalize Company
Large TIC growth potential in Europe
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Eastern
Western
Large TIC growth potential in Europe
Strong structu ral growth dr ivers
Aging Population/Safety Needs
Aging IndustrialAssets
EnvironmentalConcerns
NewRegulations
Growth inEastern Europe
Outsourcing ofPublic Services
Potential Market share gains in selected
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Potential Market share gains in selectedEuropean countries
Privatization of Public
Inspection agencies
Opening of TIC national
markets
Outsourcing of
Inspection services
New deep sea Offshore
opportunities
Opex services for industrial assets
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Opex services for industrial assets
OffshorePlatforms
> 250 offshore platforms in North Sea
20-25 years average life
Offshore Installations (Safety Case) Regulations
Certification & Verification Services
OilRefineries > 100 refineries in Europe
> 60-year average age
IPPC directive to reduce pollutants
Measurement of Fugitive Emissions
Nuclear
Plants
143 nuclear reactors in Europe
Plans for extended lifetimeor dismantling
Regulation reinforcement post Fukushima
NDT services for nuclear plant outages
Leveraging Green Building momentum
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Exis ting Bui ld ings
European & National Regulat ions
Leveraging Green Building momentum
New Const ruc t ions
The revised EPB Directive
wi l l generate addi t ional grow th for B V
Reduction in energy consumption
Key milestones in 2018 and 2020
Priority on Public buildings
Focused financial incentives
CE marking of construction products
Scope of building Technical Control
Structure Solidity
People Safety
+ Energy efficiency
Mandatory energy efficiency audits
Inspection of heat & cooling equipment
Monitoring of energy generation
installations
Adapting to a service-based economy
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Personnel Certi f ication
Shift to services driven market
Adapting to a service-based economy
Services Certi f ication
Evolving customer needs
opening potential for new offers
Need to certify quality of services
Role for independent third parties
New/customized standards
Europe still a backbone of Bureau Veritas
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Europe still a backbone of Bureau Veritasglobal development
Support to Bureau Veritas global network
Innovativeproduction models
Schedul ing &
Report ing tools
Nuclear
Construction
Marine
Offshore
TechnicalExpertise
GlobalClients
France/China Init iat ive
10 Major EU acco unts 2010
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BUREAU VERITAS
2015 STRATEGIC PLAN
Tuesday, September 20, 2011