Bureau Veritas : Earnings Documents

PRESS RELEASE

Neuilly-sur-Seine, France - April 21, 2022

Strong organic revenue growth in the first quarter of 2022; Solid 2022 outlook confirmed

Q1 2022 Key figures1

• • Revenue of EUR 1,290.1 million in the first quarter of 2022, up 11.7% year on year and up 8.0% organically

• • More than half of the portfolio (including Buildings & Infrastructure and Agri-Food & Commodities) was up 8.1% organically on average

• • A fifth of the portfolio (Industry) delivered 11.9% organic revenue growth with strong business activity for the Power & Utilities segment (including renewables) alongside the recovery of Oil & Gas markets

• • Less than a third of the portfolio (Consumer Products, Certification and Marine & Offshore) grew at 5.0% organically on average.

• • The currency impact was positive by 3.2% mainly due to the appreciation of the USD and pegged currencies partly offset by the depreciation of some emerging countries' currencies against the euro

Q1 2022 Highlights

• • Growth driven by the whole portfolio across all geographies (Americas, Middle East, Europe, Africa and Asia Pacific)

• • Sustained strong momentum for Sustainability and ESG-related solutions across all businesses

• • 58% of group sales related to Sustainability through the BV Green Line of services and solutions

• • Limited impact from Russia / Ukraine conflict (c.1% of group revenue all together in FY 2021)

2022 Outlook Confirmed

Based on a healthy sales pipeline and the significant growth opportunities related to Sustainability, and assuming there are no severe lockdowns in its main countries of operation due to Covid-19, for the full year 2022, Bureau Veritas still expects to:

• • Achieve mid-single-digit organic revenue growth;

• • Improve the adjusted operating margin;

• • Generate sustained strong cash flow, with a cash conversion above 90%.

Didier Michaud-Daniel, Chief Executive Officer, commented:

"We have got off to a very good start to 2022 with strong organic revenue growth, fueled by good momentum across all our activities. Demand for our unique worldwide sustainability offering continues to accelerate and we have a significant backlog: the BV Green Line of services and solutions is now well on the way to representing nearly 60% of our sales. More and more clients look to us for our expertise, impartiality and independence to help them shape trust around topics at the heart of their ESG challenges and of society at large: health, safety, quality, environmental protection and social responsibility. In Q1, our Clarity offering was fully deployed commercially, thus supporting companies manage their ESG strategy, track implementation and measure performance.

Looking ahead, despite the uncertain environment we are currently facing, we confirm our 2022 outlook."

1 Alternative performance indicators are presented, defined and reconciled with IFRS in appendix 2 of this press release.

Q1 2022 KEY REVENUE FIGURES

GROWTH

IN EUR MILLIONS	Q1 2022	Q1 2021	CHANGE	ORGANIC	SCOPE	CURRENCY
Marine & Offshore	101.4	94.1	+7.8%	+6.5%	-	+1.3%
Agri-Food & Commodities	280.7	249.2	+12.6%	+9.5%	(0.3)%	+3.4%
Industry	269.5	232.5	+15.9%	+11.9%	+0.2%	+3.8%
Buildings & Infrastructure	388.2	347.2	+11.8%	+7.1%	+1.5%	+3.2%
Certification	97.3	91.9	+5.9%	+4.0%	+0.4%	+1.5%
Consumer Products	153.0	139.8	+9.4%	+4.6%	+0.3%	+4.5%
Total Group revenue	1,290.1	1,154.7	+11.7%	+8.0%	+0.5%	+3.2%

Revenue in the first quarter of 2022 amounted to EUR 1,290.1 million, a 11.7% increase compared with Q1 2021. Organic growth was 8.0%, compared to a 2.5% increase in the last quarter of 2021 and benefited from a catch-up effect following the cyber-attack which occurred in Q4 2021.

Three businesses delivered strong organic growth, Industry 11.9%, Agri-Food & Commodities 9.5%, and Buildings & Infrastructure 7.1%. The rest of the portfolio saw mid-single-digit growth, with Marine & Offshore, up 6.5% organically, Consumer Products up 4.6% and Certification up 4.0%.

By geography, activities in Americas strongly outperformed the rest of the Group (26% of revenue; up 17.1% organically), led by a 10.0% increase in North America (Buildings & Infrastructure driven) and by a 29.7% increase in Latin America (led by Brazil notably). The activity in Asia Pacific (29% of revenue; up 4.5% organically) benefited from robust growth in China and in Australia as well as strong growth in India. Europe (36% of revenue; up 3.9% organically) was led by robust performance in France, strong growth in Italy and the Netherlands. Finally, in Africa and the Middle East (9% of revenue), business increased by 13.9% on an organic basis, essentially driven by Buildings & Infrastructure and energy projects in the Middle East.

The scope effect was a positive 0.5%, reflecting bolt-on acquisitions realized in the past few quarters.

Currency fluctuations had a positive impact of 3.2%, mainly due to the appreciation of the USD and pegged currencies against the euro, which was partly offset by the depreciation of some emerging countries' currencies.

LIMITED EXPOSURE TO RUSSIA / UKRAINE CONFLICT

The Group generated c.1% of its Group revenue at the end of 2021 from Russia and Ukraine all together, mainly related to commodities markets.

In Ukraine (0.3% of Group revenue), the Group has put its people's safety at the heart of crisis management. Since the start of the conflict, the Group has stop operating while ensuring the payment of its employees' salaries.

In Russia (0.8% of Group revenue), the Group has reduced its activities to essential services in quality, health & safety, environmental protection and social responsibility to domestic and international companies. Since the beginning of the ongoing conflict between Russia and Ukraine, Bureau Veritas has been regularly assessing and monitoring its position in Russia. As of this date, the Group has downsized its business in Russia in the sectors where the company was previously operating i.e., Marine, Aeronautics and Commodities. The Group will keep downsizing its operations and presence as the situation evolves.

Overall, the Group considers that most of its activities are not impacted by the current conflict in Ukraine.

SOLID FINANCIAL POSITION

At the end of March 2022, the Group's adjusted net financial debt slightly increased compared with the level at December 31, 2021. Bureau Veritas had EUR 1.4 billion in available cash and cash equivalents and EUR 600 million in undrawn committed credit lines. The Group has a solid financial structure with no maturities to refinance until June 2023.

BUREAU VERITAS IS COMMITTED TO ITS EXTRA-FINANCIAL PERFORMANCE

Corporate Social Responsibility (CSR) Key indicators

UNITED NATIONS' SDGS

Q1 2022

FY 2021

2025 TARGET

2025

SOCIAL & HUMAN CAPITAL

Total Accident Rate (TAR)2

Proportion of women in leadership positions3 Number of training hours per employee (per year)4

#3	0.21	0.27 26.5% 29.9	0.26
#5	25.4%	35.0%
#8	3.6	35.0

ENVIRONMENT

CO2 emissions per employee (tons per year)5

#13

2.43

2.49

2.00

GOVERNANCE

Proportion of employees trained to the Code of Ethics

#16

97.7% 95.8%

99.0%

CSR commitment recognized by non-financial rating agencies

Bureau Veritas supports companies, governments and public authorities in reducing their risks in terms of health, quality, safety, environmental protection and social responsibility. Those challenges are central to societal aspirations. Being a Business to Business to Society company comes with a duty: to be exemplary in terms of sustainability internally, and to be a role model for industry in terms of positive impact on people and the planet.

The Group's commitment is to act responsibly in order to Shape a Better World.

This commitment was again recognized by non-financial rating agencies during the first quarter of 2022. This is a testament to Bureau Veritas constant efforts regarding sustainability.

On February 28, 2022, Bureau Veritas was awarded Gold Class in the latest Global Sustainability Assessment by S&P. By being included in this selection, Bureau Veritas is still recognized among the world's highest performing sustainable companies in 2022.

HINDA GHARBI APPOINTED CHIEF OPERATING OFFICER OF BUREAU VERITAS

On February 24, 2022, the Board of Directors of Bureau Veritas announced the renewal of the term of office of the Chief Executive Officer, Didier Michaud-Daniel, until the Annual General Meeting in June 2023, which will be called to approve the financial statements for the year 2022.

As of May 1st, 2022, Hinda Gharbi will join Bureau Veritas as Chief Operating Officer and will be a member of the Executive Committee. The Board of Directors' decision is the result of a rigorous selection and recruitment process, as part of succession planning for the Chief Executive Officer, led jointly by the Nomination & Compensation Committee and Didier Michaud-Daniel.

On January 1st, 2023, Hinda Gharbi will assume the position of Deputy CEO of Bureau Veritas. The Board of Directors will appoint her as Chief Executive Officer at the end of the 2023 Annual General Meeting.

Hinda Gharbi will join Bureau Veritas from Schlumberger, a global technology leader in the energy sector, where she is currently Executive Vice President, Services and Equipment. In this role, which she has held since July 2020, she oversees products and services for the Group as well as digital topics.

• 2 TAR: Total Accident Rate (number of accidents with and without lost time x 200,000/number of hours worked).

• 3 Proportion of women in leadership positions (number of women on a full-time equivalent basis in a leadership position/total number of full-time equivalents in leadership positions).

• 4 Indicator calculated over a 3-month period compared to a 12-month period for FY 2021 and 2025 target values.

• 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). Indicator calculated over a 12-month rolling period.

2022 OUTLOOK CONFIRMED

Based on a healthy sales pipeline and the significant growth opportunities related to Sustainability, and assuming there are no severe lockdowns in its main countries of operation due to Covid-19, for the full year 2022, Bureau Veritas still expects to:

• • Achieve mid-single-digit organic revenue growth;

• • Improve the adjusted operating margin;

• • Generate sustained strong cash flow, with a cash conversion6 above 90%.

Q1 2022 BUSINESS REVIEW

MARINE & OFFSHORE

IN EUR MILLIONS	Q1 2022	Q1 2021	CHANGE	ORGANIC	SCOPE	CURRENCY
Revenue	101.4	94.1	+7.8%	+6.5%	-	1.3%

The Marine & Offshore business delivered a strong 6.5% organic revenue increase in the first quarter with the following trends:

• • A high single-digit increase in New Construction (42% of divisional revenue), reflecting the improvement in the new orders intake in the prior year across the board and notably in China;

• • A low single-digit growth in the Core In-service activity (43% of divisional revenue), a combination of the fleet's modest growth and some price increase against challenging comparables. At March end, the fleet classified by Bureau Veritas comprised of 11,533 ships, representing 140.1 million of Gross Register Tonnage (GRT), up 0.8% year on year (based on the number of ships);

• • Double-digit growth was recorded for Services (15% of divisional revenue, including Offshore), which benefited from improving end markets in a context of high oil prices and favorable comparables. The Group benefited from the increased demand for risk assessment services related to the Offshore segment as well as consulting services related to energy efficiency in a context of high oil prices.

New orders totaled 2.3 million gross tons at the end of March 2022 (from 2.2 million gross tons in the prior year period) in a shipping market down in the first quarter. This brings the order book to 17.1 million gross tons at the end of the quarter, up 4.9% compared to December 2021 and up 20.3% year-on-year. It remains highly diversified and composed of LNG fueled ships, container ships and specialized vessels.

Marine & Offshore continued to focus on efficiency levers through digitalization and high added-value services. In Q1, the Group opened its first excellence center in France to develop new digital solutions such as the use of drones by surveyors to deliver their inspections.

Sustainability achievements

The Group continued to address the challenges of sustainability and the energy transition by providing rules and guidelines for the safety, risk and performance requirements for innovation in future fuels and propulsion systems. The Group supported its customers in complying with environmental regulations, implementing sustainable solutions on board, and measuring progress in decarbonization.

In the first quarter of 2022, Bureau Veritas delivered an Approval in Principle (AiP) to GTT, a technological expert in membrane containment systems, Alwena Shipping, a naval consultancy and engineering firm, and COSCO Shipping Heavy Industry for a new concept, combining LNG retrofit and jumboization, applied to large container ships. LNG propulsion offers ship-owners a solution to comply with the environmental regulations being adopted by the IMO by 2045.

The Group has also upgraded its online platform, VeriSTAR Green, to enable all shipowners to assess their compliance with new International Maritime Organization (IMO) carbon intensity regulations ahead of the 2023 deadline as well as the 2015 EU MRV regulation on the Monitoring, Reporting and Verification of carbon dioxide emissions from maritime.

6 Net cash generated from operating activities/Adjusted Operating Profit.

AGRI-FOOD & COMMODITIES

IN EUR MILLIONS	Q1 2022	Q1 2021	CHANGE	ORGANIC	SCOPE	CURRENCY
Revenue	280.7	249.2	+12.6%	+9.5%	(0.3)%	+3.4%

The Agri-Food & Commodities business delivered a strong organic revenue growth of 9.5% in the first quarter of 2022, led notably by buoyant Metal & Minerals and improving Oil & Petrochemicals markets.

The Oil & Petrochemicals segment (O&P, 31% of divisional revenue) delivered mid-single-digit organic growth overall. The O&P Trade market improved on the combination of price increases and higher fuel consumption from low levels, with notably increased demand for aviation fuel/gasoline. Strong growth was achieved in the Middle East and Africa alongside robust growth in both Americas and Asia Pacific. Europe started to be affected by the Russia /Ukraine conflict which has triggered changes in the routes for trade. The Group continued to reposition its portfolio towards new services (such as laboratory outsourcing) and value-added segments related to sustainability-driven solutions, such as Oil Condition Monitoring (OCM), Carbon 14 analysis for Biofuels, or fuel marking program (in Africa). Strong activity was delivered for marine fuel and Verifuel bunker quantity services.

The Metals & Minerals segment (M&M, 33% of divisional revenue) recorded double-digit organic growth overall, across the entire value chain. The Upstream business (two-thirds of M&M) continued to record strong growth (up 16.2% organically), led by most geographies, and particularly the Americas (Canada, the US, Chile and Peru) and Asia Pacific regions (fueled by Australia). The business was supported by a strong backlog and sustained high level of exploration drilling activity in a context of buoyant metals and minerals prices. Trade activities recorded double digit organic revenue (up 12.4% organically, fueled by all the main metals (copper, lead, zinc, coal and precious metals), with strong trade volumes in Asia (notably China), Latin America and Southern Africa. The demand continues to be driven by the mega-trends of urbanization, electrification/energy transition which outweigh the disruptions with the Russia/Ukraine conflict and supply chain issues impacting the major industrial economies.

Agri-Food (22% of divisional revenue) achieved low single digit organic revenue growth in the first quarter, with better performance for Agricultural products than for Food. The agricultural inspection activities grew strongly, led by Latin America; they benefited in Brazil from very early harvest campaign for soybeans and corn. The Agri Upstream business recorded robust growth led by Brazil operations throughout all agri-commodities and thanks to the expansion of services (such as the transgenic soybean harvest control). In Europe, the business started to be impacted by the Russia/Ukraine conflict with Black Sea exports likely to be reduced moving forward. The Food business saw better resilience of the inspection activities over testing; it reflected a mixed situation by geography: strong growth in Middle East and Africa, solid growth in the US (partially driven by ramp up in new greenfield lab activities) while weak growth in Canada and in Asia Pacific, which were both impacted by a slow restart following the cyber-attack in Q4 2021. In Australia, the activity was hampered by the Covid-19 situation and the associated lockdown measures that have affected the main locations of the Group's operations.

Government services (14% of divisional revenue) demonstrated a double-digit organic revenue growth in the quarter, thanks to both Europe and Africa. Strong growth was delivered in African countries led by the strong development of VOC (Verification of Conformity) in Democratic Republic of the Congo (DRC), Ghana, Zimbabwe, Tanzania, and Single Window (Indonesia) contracts. This segment also benefited from the increased value of inspected goods on existing contracts (in DRC essentially), supported by high commodities prices. The percentage of inspections performed remotely was maintained at a high level in the quarter and for VOC contracts in Africa notably.

Sustainability achievements

The Group continues to work on several opportunities for clients to reach their sustainable development goals. In the first quarter of 2022, the Group has signed a worldwide Oil Condition Monitoring (OCM) contract with a Swedish car maker to test the engines oil and verify the wear for which the client warranty is conditioned to testing. Bureau Veritas also supported the first ever Sustainable Aviation Fuel Filtration project for a major player, which they successfully managed to return off spec jet fuel to fully On-Spec product. In Singapore, the Group has made new investments in its laboratory to be able to serve Sustainable Aviation Fuel (SAF) operators in the Region. As a major Oil & Petrochemicals hub, Singapore has the ambition to be at the forefront in Asia for sustainability. At the same time, the Group will open new labs (Agri in Indonesia) that will help serve the agri/biofuels chains.