Applus+ Investor Presentation

Applus+ Investor Presentation
June, 2014
For further information, contact Aston Swift,
Investor Relations [email protected]
Disclaimer
•
This document may contain statements that constitute forward looking statements about Applus
Services, SA (“Applus+” or “the Company”). These statements are based on financial
projections and estimates and their underlying assumptions, statements regarding plans,
objectives and expectations, which refer to estimates regarding, among others, future growth in
the different business lines and the global business, market share, financial results and other
aspects of the activity and situation relating to the Company.
•
Such forward looking statements, by its nature, are not guarantees of future performance and
involve risks and uncertainties, and other important factors that could cause actual
developments or results to differ from those expressed in these forward looking statements.
•
These risks and uncertainties include those discussed or identified in fuller disclosure documents
filed by Applus+ with the relevant Securities Markets Regulators, and in particular, with the
Spanish Market Regulator.
•
Applus+ does not undertake to publicly update or revise these forward-looking statements even
if experience or future changes make it clear that the projected performance, conditions or
events expressed or implied therein will not be realized.
•
This document may contain summarized information or information that has not been audited.
In this sense, this information is subject to, and must be read in conjunction with, all other
publicly available information, including if it is necessary, any fuller disclosure document
published by Applus+.
•
Nothing in this presentation should be construed as a profit forecast
2
A LEADING GLOBAL PROVIDER OF TIC SERVICES
Leadership in Chosen Markets and Technology
Strategic Focus on Attractive End-markets…
#2 Provider of TIC Industrial Services1
o
#1 in the Oil & Gas sector2
o
A leader in Oil & Gas Non-Destructive Testing ("NDT")
#2 Operator of Statutory Vehicle Inspections3
Leading independent Proving Ground globally
Leadership in technology based on proprietary applications
Global Platform with Local Scale
Statutory
Vehicle
Inspection
17%
Other
11%
Infrastructure
2%
Industrial General
2%
Utilities
7%
Automotive OEM
8%
Oil & Gas
53%
Operations in over 60 countries across 6 continents
324 offices, 157 testing facilities4 and 322 statutory vehicle
inspection stations
… and Diversified Geographic Footprint
ME&A
10%
Over 19,000 employees
Over 48,000 customers
Asia
Pacific
16%
Spain
17%
Strong Financial Performance
€1.6bn revenues5 and €151m adj. operating profit in 20136
Revenue CAGR of c. 15.8% over 2011-135
Adj. operating profit CAGR of 25.0% over 2011-136
Source for market positions: Annual Reports of the relevant companies (2012)
Notes
1. By revenue in 2012
2. By revenue in 2012 and based on Management estimates. Ranking based on maximum possible Industrial
Services revenue from Oil & Gas for peers. Excludes revenue contribution from commodity testing of Oil & Gas
3. Based on number of inspections carried out in 2012
4. Includes laboratories
Latin
America
7%
US and
Canada
23%
Rest of
Europe
27%
Source: (5) Audited Consolidated Financial Statements of the Company for the year ended 31
December 2013 (6) Management information
3
ATTRACTIVE PORTFOLIO OF ACTIVITIES
Verticals
Statutory
Vehicle
Inspections
Energy and Industry Services
(% of Group
Revenue)
(75%)
Automotive
Engineering &
Testing
(17%)
(8%)
Divisions
2013 Revenue
(% Group
Revenue)
2013A Adj.
Operating
Profit Margin1


Main
Activities
€559m
(35%)
€373m
(24%)
€186m
(12%)
€57m
(4%)
€274m
(17%)
€133m
(8%)
8.9%
8.6%
8.2%
3.4%
21.6%
13.2%
Non-destructive
testing and
inspection
services
Advanced
technologies in
NDT and
corrosion
analysis

Vendor
surveillance,
third party
inspection,
certification and
technical
recruitment
services for the
Oil & Gas
industry

Industrial and
environmental
inspection and
technical
assistance
services


Product testing
and system
certification
services
IT, Mechanical,
EMC2 &
Electricity, Fire &
Building
Materials,
Metrology labs


Statutory vehicle
inspection
services
Safety emission
and gas testing
solutions


Design,
engineering,
testing and
homologation
services for the
automotive
industry
Proving ground
and testing
facilities
Source: Audited Consolidated Financial Statements of the Company for the year ended 31 December 2013
Note
1. Divisional financials before Group level overhead costs of €24.4m
2. Electro Magnetic Compatibility
4
APPLUS+
LEADING GLOBAL TIC PLATFORM
HISTORY OF TRANSFORMATION INTO A GLOBAL
PLATFORM
Milestones
Establishment
of Agbar
Automotive,
Statutory
Vehicle
Inspection
Company
IDIADA
contract
awarded
Launch of
Applus+
brand
worldwide
Applus+
Laboratories
contract
awarded
Acquisition of
NORCONTROL1
Acquisition of
RTD
(2004)
Acquisition of
Bilsyn
in Denmark
Acquisition of
VELOSI
Acquisition of
K1 in Finland
(2006)
(2005)
Revenue
Year
-
€138m
1996
1
Shareholding
Geographic
footprint
1999
8
2002
14
(100%)
€227m
2003
17
€546m
€669m
€815m
2004
2006
2007
2009
2011
2013
19
30
32
36
60+
60+
(53%)
(70%)
(25%)
Financial institutions
and other
€1,180m
€1,581m
(30%)
(22%)
•
# of countries present
Note
1. Union Fenosa contributed Norcontrol in exchange for 25% investment
6
CONSISTENT AND ROBUST GLOBAL GROWTH
1,6
1,5
22%(2)
1,2
Revenue (€bn)1
CAGR
09–13
61%
23%
0,9
0,8
24%
12%
(3%)
2009
Spain
2010
Rest of Europe
US and Canada
Notes
1. Revenues based on actual rates and proforma for acquisitions within the relevant acquisition year
2. Refers to 2011–13 period
2011
2012
Latin America
Asia Pacific
2013
Middle East and Africa
Source: Combined Financial Statements of the Company for the year ended 31 December
2011 and 2012, Audited Consolidated Financial Statements of the Company for the year
ended 31 December 2013 and Management information for 2009 and 2010
7
KEY INVESTMENT HIGHLIGHTS
1
Global platform with market leadership and scale
2
Strategic focus on attractive market segments with robust structural growth
3
Strong barriers to entry strengthening blue-chip client relationships
4
Recurrent and resilient financial profile
5
Proven track record of value creation through acquisitions
6
Experienced international management team
8
1
GLOBAL PLATFORM WITH MARKET LEADERSHIP
AND SCALE
#2 in Industrial
Inspection1
#1 in TIC Industrial
Services for
Oil & Gas2
#2 in Statutory
Vehicle Inspections3
Leading Independent
Proving Ground for
Automotive OEMs
(Automotive Engineering & Testing)
Rest of Europe
2013 revenue €423m
c. 3,850 employees
Spain
2013 revenue €276m
c. 5,050 employees
Asia Pacific
2013 revenue €250m
c. 2,800 employees
US and Canada
2013 revenue €362m
c. 3,000 employees
Latin America
ME&A
2013 revenue €109m
c. 2,150 employees
2013 revenue €160m
c. 2,600 employees
Applus+ Velosi
Energy &
Industry
Services
Applus+ RTD
Applus+ Norcontrol
Applus+ Laboratories
Note
1.
By revenue in 2012
2.
By revenue in 2012 and based on Management estimates. Ranking based on maximum possible Industrial Services
revenue from Oil & Gas for peers. Excludes revenue contribution from commodity testing of Oil & Gas
3.
By number of inspections carried out in 2012
Statutory Vehicle
Inspections
Applus+ Automotive
Automotive Engineering
& Testing
Applus+ IDIADA
Sources:
- Annual Reports of the relevant companies (2012)
- Audited Consolidated Financial Statements of the Company for the year
ended 31 December 2013 for revenue, Management information
9
2
STRUCTURALLY ATTRACTIVE GROWING MARKET
Globalisation
Complexity of
Supply Chains
Outsourcing
Privatisation
Regulations
Operates within chosen high
growth verticals in the
>€100bn global TIC market1
Investment in new
Infrastructure
Increase in QHSE
Standards
Ageing
Infrastructure
Source:
(1)
QHSE Risk
Mitigation
Large and global addressable markets
Resilience
Strong organic growth with a track record of
outperforming GDP growth
Fragmented competitive landscape offering
consolidation opportunity
Management estimates based on third party data as at 2013
10
2
ROBUST GROWTH DRIVERS ACROSS FOCUS MARKETS
Energy
and Industry Services
Statutory
Vehicle Inspections
15%
6%
(75% of ’13 Revenue2)
Attractive
Organic Growth1
2011-13 Average
Group Organic
Revenue Growth
New Oil & Gas infrastructure
Maintenance of ageing Oil &
Gas assets in US, Europe
and Middle East
Proliferation of regulations
US and Canada energy
production growth
Growth Drivers
and Trends
Energy and infrastructure
investments in Latin
America
(17% of ’13 Revenue2)
Automotive
Engineering & Testing
(8% of ’13 Revenue2)
20%
Developing countries
adopting statutory
inspection programs
Increased number of
vehicle models / shorter
product cycle
Resilience to economic
downturn
Increased outsourcing in
developed markets
Potential increase in the
number of states in the US
OEMs in Emerging Markets
need to import technical
know-how
Increase in scope of
inspections / inspections
frequency and vehicle types
in the EU
Western standards in
Emerging Markets
Economic recovery in Spain
Source:
(1)
Management information
(2)
Audited Consolidated Financial Statements of the Company for the year ended 31 December 2013
11
STRONG BARRIERS TO ENTRY STRENGTHENING
CLIENT RELATIONSHIPS
Brand and Reputation
Long-Term Client Relationships1
Reputation for technical capabilities and service excellence
Built-up knowledge of client practices and requirements
Track record and experience
79%
Portfolio of Accreditations, Concessions and Authorisations
Large number of Accreditations, Concessions and Authorisations
c. 80% of Statutory Vehicle Inspections business supported by long-term
concessions
Efficient, Well-Invested Global Network
Serve customers locally and globally
Platform to serve large complex global projects
Well diversified with 324 offices in over 60 countries
Technical Expertise, Proprietary Technology & Patents
Proprietary inspection equipment, technology and software
Highly skilled employee base
Continued innovation resulting in unique technology and patents
World Class Facilities
Globally leading proving ground at IDIADA's facilities
Advanced, well-equipped laboratories
Network of 322 vehicle inspection stations
Split of Revenue from Top 50 Clients
3
8%
6%
7%
Less than 3 From 3 to 5 From 5 to 10
years
years
years
Over 10
years
Note
1.
Split of revenue from the Top 50 Clients based on length of
relationship (2013A)
12
RECURRENT AND VISIBLE REVENUE BASE
4
Non-discretionary,
mission-critical
services
Embedded in clients’
supply chains
o Regulatory driven
services
o Quasi-mandatory
QHSE best practices
o Low relative cost of
service vs. asset
value or reputational
impact
Long Term Master Services
Agreements With Key Clients
o Length and
complexity of supply
chain requires
external inspection
o High switching costs
o High cost for client
associated with risk
of disruption or
failure
% of Top 25 Clients
With MSA (2013)
68%
RTD
Velosi
Diversified customer
and geographic
exposure
o Multi-year
concessions in
Statutory Vehicle
Inspections
o Limited customer
concentration; largest
client <6% of revenue
o Broad geographic
diversity
o Master Services
Agreements with
blue-chip clients
covering substantial
portion of Energy &
Industry activities
Low Customer Concentration
2013, Group
80%
Substantial
proportion of
contracted services
Top 10
clients
19%
20132
Top
11-20
clients
6%
Others
75%
Note
1.
As of January 2014, and not including potential concession extensions in Spain and assuming no renewal for Chile
2.
Based on revenue
Multi-Year Statutory Vehicle
Inspections Concessions
Liberalised
20%
9.1 Year
Avg.
Remaining
Life1
Concession/
Authorisation
based
(Regulated)
80%
13
SOLID TRACK RECORD OF ACQUIRING AND
INTEGRATING VALUE ENHANCING ACQUISITIONS
5
Substantial and Attractive Value-Creation
Opportunity
Fragmented market with extensive set of opportunities
across regions and segments
Track Record of Value Creating Acquisitions
2008
2009
2010
2011
2012
Testex
Inspection LLC
Focus on small and medium-sized family / founder
owned companies in order to:
o
Increase scale in key growth regions: US &
Canada, Central Asia, Middle East and Africa
o
Extend leadership in high-growth segments: Oil &
Gas, Industry, Automotive Engineering & Testing
o
Add new technical expertise
OMS South Korea
Iha Autokatsastus
2
Track record of value creation
o
>20 add-on deals closed during the last 5 years
o
Acquisitions negotiated in exclusivity, with
attractive entry multiples
o
2013
7
5
6
1
3
117
43
34
Transactions executed by internal Corporate
Development team
13
2008
2009
2010
Acquisition spend (€m)
2011
4
8
2012
2013
# of acquisitions
14
6
EXPERIENCED AND COMMITTED MANAGEMENT TEAM
WITH A PROVEN TRACK RECORD
LEGEND
Name
Position
Joined Applus+ /
Years of industry experience
Fernando Basabe
CEO
2011 / 17
Joan Amigó
CFO
2007 / 6
Jorge Lluch
SENIOR VP CORPORATE
DEVELOPMENT
2007 / 6
José Delfin
SENIOR VP HUMAN
RESOURCES
2006 / 7
Eva Argiles
LEGAL
2013
Iain Light
Dr. Nabil A. Jalil
Ramón F. Armas
Pablo San Juan
Jordi Brufau
Aitor Retes
Arne Willerslev
EXECUTIVE VP
2011 / 21
EXECUTIVE VP
2011 / 31
EXECUTIVE VP
1998 / 15
EXECUTIVE VP
1988 / 25
EXECUTIVE VP
2007 / 6
EXECUTIVE VP
2009 / 4
EXECUTIVE VP
2006 / 7
Dr.-Ing. Carles
Grasas
EXECUTIVE VP
1987 / 26
15
DIVISIONS OVERVIEW
REVENUE
APPLUS+ RTD
Overview
ADJ. OPERATING
PROFIT
35%
Geographic Revenue Breakdown
Founded in 1937, headquartered in Rotterdam,
Netherlands, and joined the Applus+ Group in
2006
Leading global provider of mission-critical
non-destructive testing and inspection services
for high-risk capital intensive assets
28%1
Rest of
world2
5%
Asia Pacific
11%
Focused on Oil & Gas, Power, Utilities,
Aerospace and Civil Infrastructure sectors
Strong reputation built upon track record of
innovation, technology and highly qualified
employees
US & Canada
52%
Europe
32%
Active in more than 25 countries across five
continents with c. 3,770 FTEs
Pipelines
37%
Notes
1. Divisional financials before Group level overhead costs of €24.4m
2. Rest of world comprises Latin America, Middle East and Africa
17
REVENUE
APPLUS+ VELOSI
Overview
ADJ. OPERATING
PROFIT
24%
18%1
Geographic Revenue Breakdown
Founded in 1982 in Kuala Lumpur, Malaysia,
and joined the Applus+ Group in 2011
A leading global provider of vendor
surveillance, site inspection and technical
staffing services for the Oil & Gas industry
o Has a leading position in Middle East, Africa
and Asia Pacific
LatAm
1%
Europe
13%
ME&A
35%
US & Canada
9%
o Growing presence in North America
Revenue mostly generated by Oil Majors
Asia
Pacific
Active in more than 35 countries across five
continents with c. 4,500 FTEs
42%
Notes
1. Divisional financials before Group level overhead costs of €24.4m
18
REVENUE
APPLUS+ NORCONTROL
Overview
ADJ. OPERATING
PROFIT
12%
8%1
Geographic Revenue Breakdown
Founded in 1981, headquartered in Madrid,
Spain
Operates under two segments: Norcontrol
Spain and Norcontrol LatAm
Middle
East
3%
Assesses the quality, safety and efficiency of
the design, construction and operation of
industrial facilities
Leading position in Spain with strong presence
in Latin America
Latin
America
35%
Clients include Utilities, Oil & Gas companies
and Infrastructure developers
Spain
62%
Notes
1. Divisional financials before Group level overhead costs of €24.4m
19
REVENUE
APPLUS+ LABORATORIES
Overview
ADJ. OPERATING
PROFIT
4%
1%1
Geographic Revenue Breakdown3
Product testing and certification services
Multi-technology state-of-the-art laboratories for
Electrical safety, Building fire safety, EMC4
A global leader in electronic and mobile Payment
Systems (Software and Hardware testing)
Rest of
world3
Middle East
8%
7%
European reference in Aerospace testing
Wide range of accreditations, customer & sector
qualifications (Aerospace, IT etc.)
Rest of
Europe2
Spain
64%
21%
Presence in Europe, Latin America, China and
Saudi Arabia with c. 600 employees
Agrofoods (Spain primarily and China) accounting for 19% of division
revenue in 2013 was divested with effect from 1 January 2014.
Notes
1.
Divisional financials before Group level overhead costs of €24.4m
2.
Rest of world comprises Germany and Norway
3.
Rest of world comprises China and Latin America
4.
Electro Magnetic Compatibility
20
REVENUE
APPLUS+ AUTOMOTIVE
Overview
ADJ. OPERATING
PROFIT
17%
Geographic Revenue Breakdown
Applus+ Automotive was established in Spain in 1996
Second largest statutory vehicle inspection operator
globally2 with leading market positions in Europe and
Americas
o 10 million inspections annually
Focused on the assessment of vehicle safety and
analysis & control of polluting gas emissions
Active in both regulated and deregulated markets
Operates under two divisions: Spain & LatAm and
International and has c. 3,000 FTEs
34%1
Latin America
10%
Spain3
US & Canada
34%
13%
Rest of Europe
43%
Revenue Breakdown by Regulatory Regime
Liberalized
20%
9.1 Year
Avg.
Remaining
Life4
Concession/
authorization
based
(Regulated)
80%
Notes
1. Divisional financials before Group level overhead costs of €24.4m
2. Based on number of inspections carried out (2012)
3. Andorra included in Spain, represents <1% of revenues
4. As of January 2014, not including concession extensions and assuming no renewal for Chile
21
REVENUE
APPLUS+ IDIADA
Overview
ADJ. OPERATING
PROFIT
8%
10%1
Geographic Revenue Breakdown
Founded in 1971, headquartered in Tarragona, Spain
Engineering, testing and homologation services
provider for the world’s leading vehicle manufacturers
(OEMs)
Leading independent proving ground in the world
o Proving ground owned by Catalan Government;
Applus+ was awarded a contract to operate the
facilities in 19993
Rest of world2
1%
Latin America
4%
Spain
22%
Asia Pacific
23%
Specialized labs and testing facilities with deep knowhow in technical requirements to fulfil all standards
and regulations worldwide
International network with presence in Europe, China,
India and Brazil with c. 950 skilled and experienced
engineers
Rest of
Europe
50%
Advanced R&D capabilities in body passive & active
safety, chassis & powertrain and electronics &
reliability
Notes
1. Divisional financials before Group level overhead costs of €24.4m
2. Rest of world comprises United States, Canada and Middle East and Africa.
3. Contract runs until 2019 and can be extended (for incremental periods of 5 years) until
2049. The Catalan Government has already committed to granting a first extension until
2024
22
OVERVIEW OF FINANCIAL PERFORMANCE
HIGHLY ATTRACTIVE FINANCIAL PROFILE
(€m)
2011
20133
15.8%
Revenue
1.180
CAGR 11-13
1.581
25.0%
CAGR 11-13
Adjusted Operating
Profit(1)
151
97
30.9%
CAGR 11-13
Operating Free Cash
Flow Generation(2)
158
92
Notes
1. Adjusted Operating profit = operating profit excluding impairment and gains or losses on disposal of non-current assets, PPA
amortisation and certain items within depreciation and amortisation charge and other losses
2. Operating Free Cash Flow = operating profit + other losses + impairment and gains or losses on disposal of non current assets
+ depreciation and amortization charge – capex – growth projects – change in Working Capital + management incentive plan
related provision
3. Not inclusive of acquisitions closed in 2013
Source: Combined Financial Statements of the Company for the
year ended 31 December 2011 and 2012, Audited Consolidated
Financial Statements of the Company for the year ended 31
December 2013 for Revenue figures and Management
information for Adjusted Operating Profit and Operating Free
Cash Flow Generation
24
SUPERIOR GROWTH ON THE BACK OF STRONG
ORGANIC GROWTH
Sources of Growth
Organic
growth
Organic Growth by Division
2011-12
2012-13
Average
16.2%
11.5%
13.9%
Average 2011-2013
19%
24%
Inorganic
growth
4.7%
FX
3.3%
-
2.3%
(1%)
(3.6%)
(0.1%)
3%
6%
Total
growth
24.2%
7.9%
16.0%
20%
25
PROVEN TRACK RECORD OF IMPROVING
PERFORMANCE ACROSS DIVISIONS
Adjusted Operating Margin1 across Divisions
8,9%
5,8%
2011
8,6%
6,7%
2013
2011
Energy and
Industry
Services
+260bps
2013
o Cultural shift towards margin
enhancement as well as revenue growth
+160bps
o Operational leverage and scale benefits
8,2%
5,8%
2011
2013
1,7%
3,4%
2011
2013
2011
o Improving proportion of higher valueadded services
o Further integration and standardization of
shared services across divisions
o Investments in information systems and
tools
-90bps
22,5%
Good progress made to improve margins
in the last 3 years, but still upside
potential underpinned by:
21,6%
2013
o Improved management of cost base
12,4%
13,2%
2011
2013
1. Divisional operating margin before Group level overhead costs of €24.4m
26
LOW CAPITAL INTENSITY MODEL AND FOCUS ON
WORKING CAPITAL MANAGEMENT SUPPORTING
STRONG CASHFLOW GENERATION
Limited Capex (€m)
c. 3.8% revenues, maintenance capex c. 3.0% revenue
62
45
52
High Cash Conversion1 Rates (€m)
EBITDA2
% Revenues
2011
2012
2013
3.8%
4.2%
3.3%
Disciplined Working Capital Management (€m)
Cash flow
conversion
65%
129
119
% Revenues
2012
2013
12.3%
8.8%
7.6%
79%
171
142
158
125
92
2011
2011
73%
200
c. €400m revenues 2011-13 increase vs. €25m working capital
decrease
145
Operating Free Cash Flow3
2012
2013
Source: Combined Financial Statements of the Company for the year ended 31 December 2011 and 2012, Audited Consolidated Financial Statements of the Company for the year ended 31 December
2013 and Management information for Operating Free Cash Flow Generation
Notes
1.
Cash Flow Conversion = Operating Free Cash Flow /EBITDA
2.
EBITDA = Operating profit + other losses + impairment and gains or losses on disposal of non current assets + depreciation and amortization charge + management incentive plan related provision
3.
Operating Free Cash Flow = EBITDA - Capex - Growth Projects – Change in Working Capital
27
CAPITAL STRUCTURE
Post-IPO Capital Structure
Primary net proceeds used to repay existing debt.
Post-IPO Capital Structure De-leveraging To
Boost Bottom-Line Profitability
Net interest (€m)
Rapid deleveraging, including normal course M&A, in line with
historical track record
Refinancing of existing facilities with new pro forma capital
structure based on:
- €700m Term Loan Facility
86
 5 year (May 2019) bullet repayment
 2.25% margin over EURIBOR
- €150m Revolving Credit Facility
 5 year (May 2019) bullet repayment
 2.25% margin over EURIBOR
 Commitment fee of 35% of the applicable margin computed
on the unused amount
 Available back-up liquidity to be used for M&A financing
Strong bank syndicate behind financing
2013
Illustrative Pro forma
28
CURRENT TRADING – Q1 2014
Sustained High Organic Revenue Growth
Driven by Strong Organic Revenue Growth of Key Divisions
(Y-o-y)
7.9%
11,5%
2013
Total
growth (%)
5,9%
15,0%
15,4%
15,9%
2013
March 14 YTD
2013
Organic
Growth (%)
10,3%
6,2%1
1,9%
1.1%
2013
(Y-o-y)
22,7%
March 14 YTD
March 14 YTD
Continued Adjusted Operating Profit Margin Expansion
+115bps
10,6%
10,4%
March 14 YTD
2013
March 14 YTD
15,0%
15,0%
2013
March 14 YTD
+80bps
17,8%
5,2%
1,7%
2013
Margin
expansion (bps)
March 14 YTD
2013
March 14 YTD
Growth (%)
Source: Audited Consolidated Financial Statements of the Company for the year ended 31 December 2013 and Management information
Note: (1) Excluding the Agrofood business (Natura), divested in March 2014
Y-o-y Organic
Growth (%)
29
APPLUS+ AN ATTRACTIVE INVESTMENT
Leadership
Global Platform
Experienced and
Committed
Management
Attractive
Markets
Strong Cash
Conversion
Growth
Significant
Margin Upside
Revenue Visibility
and Resilience
30