2025 strategic direction: Taking the group's value creation to the next level
With its 2025 Strategy, Bureau Veritas continues its value creating journey ensuring both short- and long-term growth, by capturing the maximum value from existing businesses as well as in businesses adjacent to our core activity and by leading sustainability in the TIC sector. We will build upon the strengths of Bureau Veritas, of which our ability to be extremely reactive and our efficient execution will constitute the corner stones of our success in the years to come.
In order to accelerate its transformation and growth, Bureau Veritas will capitalize on underlying market trends that are picking up speed around the world, starting with those that will have the greatest impacts on the TIC Industry, and particularly on BV’s business portfolio.
Bureau Veritas is capitalizing on the successful delivery of the previous strategic plan and relies upon the key fundamentals of the TIC market, which offer solid growth prospects. This roadmap is based upon 3 Value Drivers:
The execution of Bureau Veritas’ 2025 Strategy is supported by 3 Enablers:
Bureau Veritas has consolidated all strategic priorities along 5 overarching themes. All these areas of investment were built upon BV’s capabilities and longtime expertise, and are fully aligned to the megatrends:
As part of its strategy, the Group set a new mid-term financial ambition:
|GROWTH||Resilient enhanced organic growth: mid-single-digit|
|MARGIN||No compromise on margin: above 16%1|
|CASH||Strong Cash Conversion2: superior to 90%|
The use of Free Cash Flow generated from our operations will be balanced between Capital Expenditure (Capex), Mergers & Acquisitions (M&A) and shareholder returns (Dividend):
|CAPEX||Between 2.5% to 3.0% of Group revenue|
|M&A||Disciplined and selective bolt-on M&A strategy|
|DIVIDEND||Pay-out of around 50% of Adjusted Net Profit|
Beyond Financial performance, Bureau Veritas remains committed to its extra-financial performance.
The Group presented its strategy for social and environmental responsibility up to 2025. This strategy, aligned with the United Nations' Sustainable Development Goals (UN SDGs), aims at “Shaping a Better World”. It is built upon three strategic axes: “Shaping a better workplace”, “Shaping a better environment” and “Shaping better business practices”; and three sustainability pillars: “Social & Human capital”, “Natural capital” and “Governance”.
Bureau Veritas will track and report annually its CSR performance through 18 selected key performance indicators. In addition, the Group is committed to the achievement of five key performance indicators through 2025.
|UNITED NATIONS' SDGS||2025 TARGET|
|SOCIAL & HUMAN CAPITAL|
|Total Accident Rate (TAR)3||#3||0.26|
|Proportion of women in leadership positions4||#5||35%|
|Number of training hours per employee (per year)||#8||35.0|
|CO2 emissions per employee (tons per year)5||#13||2.00|
|Proportion of employees trained to the Code of Ethics||#16||99%|
1 Adjusted operating margin at constant exchange rate.
2 Net cash generated from operating activities before corporate tax/Adjusted Operating Profit, on average over the period.
3 TAR: Total Accident Rate (number of accidents with and without lost time x 200,000/number of hours worked).
4 Proportion of women from the Executive Committee to Band II (internal grade corresponding to a management or executive management position) in the Group (number of women on a full-time equivalent basis in a leadership position/total number of full-time equivalents in leadership positions).
5 Greenhouse gas emissions from offices and laboratories, tons of CO2 equivalent per employee and per year for Scopes 1, 2 and 3 (emissions related to business travel).