DIRECCIÓN ESTRATÉGICA BV 2025

News

STRATEGIC DIRECTION 2025: TAKING THE GROUP'S VALUE CREATION TO THE NEXT LEVEL

May. 16 2023

With its Strategy 2025, Bureau Veritas continues its value creation journey by ensuring short- and long-term growth, capturing maximum value from existing businesses as well as in businesses adjacent to our core business and leading sustainability in the ICT sector. We will build on Bureau Veritas' strengths, of which our ability to be extremely reactive and our efficient execution will form the cornerstones of our success in the years ahead.

POWERFUL MEGATRENDS SUPPORTING THE DEVELOPMENT OF THE ICT SECTOR

In order to accelerate its transformation and growth, Bureau Veritas will capitalize on the underlying market trends that are gaining speed around the world, starting with those that will have the greatest impact on the ICT industry, and particularly on BV's business portfolio.

Image
Megatendencias
MORE RESILIENCE TODAY, MORE BUSINESS TOMORROW
  VALUE DRIVERS: THE BACKBONE OF THE STRATEGY

Bureau Veritas is capitalizing on the successful delivery of the previous strategic plan and builds on the key fundamentals of the ICT market, which offer solid growth prospects. This roadmap is based on 3 values:

  • Scale: Bureau Veritas aims to capture maximum value from its existing assets, capabilities and geographies by accelerating the standardization and replication of its existing service offering. The transformation journey will continue towards an even more market-driven organization, capitalizing on the significant investments made over the last 6 years, both internally and externally. This will drive organic growth.
  • Expand: Bureau Veritas will focus particularly on sustainability and energy transition, which represent exciting opportunities for growth. The Group will take full advantage of cross-cutting growth opportunities that will emerge alongside macroeconomic and societal changes (5G, new mobility, etc.). This will be achieved through increased penetration in rising and high-value markets, and by capturing both organic and external growth opportunities.
  • Leader: Bureau Veritas will invest in companies that have the potential to become part of the core ICT business in the future. The Group will take full advantage of technological changes to be well positioned in key trending topics such as connectivity, traceability and cybersecurity. Like Expand, the lead involves organic and external growth.

 

ENABLERS: KEY ACCELERATORS TO EXECUTE THE BV STRATEGY

The execution of Bureau Veritas' Strategy 2025 is supported by 3 enablers:

 

  • People and Culture: Bureau Veritas' success, its ability to serve its clients and differentiate itself, its ability to innovate and grow sustainably depend to a large extent on its human capital. How the Group attracts the best talent, how it retains its experts, how it develops its next generations and how it ultimately builds its culture throughout the organization are central to the 2025 Strategic Direction.
  • Organization and Governance: For 200 years, Bureau Veritas has been helping its clients improve their practices related to health, safety, quality, social and environmental protection. The Group must be exemplary. This is Bureau Veritas' conviction and commitment, for its clients, for its shareholders, for society and for itself. The 2025 objective is to lead the ICT industry in ESG (Environmental, Social and Governance criteria).
  • Innovation and Digital: Innovation and digital are key enablers to accelerate the execution of BV 2025 Strategic D, to anticipate the needs of its customers, to help them ensure greater efficiency with respect to their assets, systems and products, and to accompany them in their own digital transformation.

 

Image
metas2025 bv
OVERARCHING THEMES: DRIVING BUSINESS OPPORTUNITIES  

Bureau Veritas has consolidated all strategic priorities along five overarching themes. All of these investment areas were based on BV's long-standing capabilities and expertise, and are fully aligned with megatrends:

  • Asset Lifecycle Solutions, driving management activities throughout an asset's lifecycle.
  • Sustainability Assurance, lending credibility to our clients' sustainability strategies.
  • Energy Transition Compliance Assessment, accompanying our clients in their energy transition strategies.
  • Technology and Online Retail, assisting our clients in their compliance, performance or security requirements.
  • Cybersecurity Compliance, which will be a relevant part of our portfolio in the future.
 FINANCIAL AMBITIONS AND ASSUMPTIONS FOR 2025

As part of its strategy, the group set a new medium-term financial ambition:

AMBITION 2025

 

GROWTH     Enhanced and resilient organic growth: mid-single-digit

MARGIN       No compromise on margin: above 16%[1].

CASH             Strong cash conversion: over 90%[2]

 

The use of Free Cash Flow generated by our operations will be balanced between Capital Expenditures (Capex), Mergers & Acquisitions (M&A) and Shareholder Returns (Dividends):

ASSUMPTIONS 2025

 

CAPEX

Between 2.5% and 3.0% of Group revenues

MERGERS & EVENTS

Disciplined and selective M&A strategy

DIVIDEND   

Payout of around 50% of adjusted net income

 

SUSTAINABILITY AMBITIONS FOR 2025

Beyond financial performance, Bureau Veritas remains committed to its extra-financial performance.

The Group presented its Social and Environmental Responsibility strategy to 2025. This strategy, aligned with the United Nations Sustainable Development Goals (UN SDGs), aims to "Shaping a better world". It is based on three strategic axes: "Shaping a better workplace", "Shaping a better environment" and "Shaping better business practices"; and three sustainability pillars: "Social and human capital", "Natural capital" and "Governance".

Bureau Veritas will monitor and report annually on its CSR performance through 18 selected key performance indicators. In addition, the Group is committed to achieving five key performance indicators by 2025.

 

The United Nations ODS

Goal 2025

SOCIAL AND HUMAN CAPITAL

 

 

Total accident rate (TAR)[3]

#3

0.26

Proportion of women in leadership positions [4]

#5

35%

Number of training hours per employee (per year)

#8

35.0

NATURAL CAPITAL

 

 

CO2  emissions per employee (tons per year) [5]

#13

2.00

GOBERNANCE

 

 

 Proportion of employees trained according to the Code of Ethics

#16

99%

[1] Margen operativo ajustado a tipo de cambio constante.

2 Efectivo neto generado por las actividades operativas antes del impuesto de sociedades/Beneficio operativo ajustado, en promedio durante el periodo.

3 TAR: Tasa total de accidentes (número de accidentes con y sin tiempo perdido x 200.000/número de horas trabajadas).

4 Proporción de mujeres del Comité Ejecutivo a la Banda II (grado interno correspondiente a un puesto directivo o de dirección ejecutiva) en el Grupo (número de mujeres a tiempo completo equivalentes en un puesto de liderazgo/número total de equivalentes a tiempo completo en puestos de liderazgo).

5 Emisiones de gases de efecto invernadero de oficinas y laboratorios, toneladas de CO2  equivalente por empleado y por año para los alcances 1, 2 y 3 (emisiones relacionadas con viajes de negocios).

Más información: