Group 1 - Bureau Veritas successfully completed a bond issuance of EUR 700 million, maturing in October 2033, with a coupon rate of 3.375% [2][3] - The bond issuance was oversubscribed by 2.4 times, indicating strong investor confidence in Bureau Veritas' business model and credit profile [3] - The bond will be rated A3 by Moody's, reflecting the company's solid credit standing [3] Group 2 - The new bond issuance is part of Bureau Veritas' LEAP | 28 strategy, aimed at leveraging favorable market conditions for general corporate purposes [3] - Admission of the bonds to trading on Euronext Paris is expected to take place on October 1, 2025 [4] - Crédit Agricole CIB and Natixis served as Global Coordinators and Active Joint Bookrunners for the bond issuance [4] Group 3 - Bureau Veritas is a global leader in testing, inspection, and certification services, with a mission to ensure responsible progress and sustainability [5][6] - The company has a workforce of 84,000 employees operating in 140 countries, addressing challenges in quality, health and safety, environmental protection, and sustainability [6] - Bureau Veritas is listed on Euronext Paris and is part of the CAC 40 and CAC 40 ESG indices [7]

Core Viewpoint - Diginex Limited and SGS have reaffirmed their strategic alliance to enhance sustainable finance solutions, focusing on ESG requirements and innovative technology-driven services [1][2][3]. Group 1: Strategic Alliance Details - The renewed alliance builds on the initial agreement from 2022, which provided ESG data assurance services, and aims to address the increasing demand for transparent and scalable sustainable finance frameworks [2][3]. - The collaboration combines Diginex's ESG data management platforms with SGS's expertise in assurance, verification, and certification, enhancing tools and services for financial institutions and corporations [2][3]. Group 2: Key Highlights - The alliance aims to support clients in navigating sustainable finance complexities, enhancing the credibility of sustainability reporting, and accelerating efforts towards global climate and social objectives [3]. - Diginex's blockchain-enabled technology and SGS's assurance methodologies will provide transparency and reliability in ESG data, facilitating better decision-making for sustainable investments [6]. Group 3: Solutions and Services - The strategic alliance will develop tailored tools for financial institutions to integrate ESG metrics into their strategies, ensuring compliance with frameworks like the EU Taxonomy and SFDR [6]. - The collaboration will prioritize solutions that assist organizations in achieving net-zero targets, including carbon footprint assessments and sustainability reporting [6]. Group 4: Company Background - Diginex Limited is a sustainable RegTech business that utilizes blockchain, AI, and data analysis to enhance transparency in corporate regulatory reporting and sustainable finance [4]. - The diginexESG platform supports 19 global frameworks, providing end-to-end support for sustainability data management and reporting [5]. Group 5: SGS Overview - SGS is the world's leading testing, inspection, and certification company, operating over 2,500 laboratories across 115 countries, with a commitment to quality and sustainability [8].

Financial Performance - UL Solutions' 2024 revenue reached $2.9 billion[14] - The company achieved 8.7% organic revenue growth in 2024[14] - Adjusted EBITDA for 2024 was $656 million, representing a 22.9% margin[14, 42] - The average Free Cash Flow from 2022 to 2024 was $249 million, with a 9.2% margin[42] - Q1 2025 saw a 7.6% organic revenue increase and a 22.9% rise in Adjusted EBITDA[60] Business Segments - The Industrial segment generated $1.254 billion in revenue in 2024, with a 31.4% Adjusted EBITDA margin[25, 30] - The Consumer segment's 2024 revenue was $1.238 billion, with a 16.4% Adjusted EBITDA margin[25, 32] - Software and Advisory segment revenue reached $378 million in 2024, with a 15.6% Adjusted EBITDA margin[25, 34] Market Position and Growth - UL Solutions holds the 1 product TIC market share by revenue[21] - The outsourced product TIC market is projected to grow at a 5-6% CAGR from 2022-2026[26]

Summary of UL Solutions (ULS) FY Conference Call Company Overview - **Company**: UL Solutions (ULS) - **Industry**: Testing, Inspection, and Certification (TIC) - **Revenue**: $2.9 billion in the last fiscal year - **Customer Base**: Over 80,000 customers across more than 35 industries - **Global Presence**: 41% of revenue from the USA, 25% from Greater China, and the remainder from Europe, the Middle East, and the rest of Asia [12][18][22] Key Themes and Core Messages 1. **Mission-Driven Growth**: ULS emphasizes its mission of creating a safer world, which resonates with customers and their end-users [6][61] 2. **Safety Science Commitment**: The company focuses on applying safety science to help customers navigate challenges in innovation, security, and sustainability [7][62] 3. **Long-Term Customer Relationships**: ULS has a history of long-lived customer relationships, with many clients being with the company for over a century [8][62] 4. **Global Scale and Operating Leverage**: The company leverages its global scale to drive margin expansion and growth, having invested over $1.3 billion in acquisitions since 2010 [9][17] 5. **Financial Strength**: ULS maintains a healthy balance sheet and disciplined capital allocation, allowing for flexibility in growth strategies and shareholder returns [9][10] Market Dynamics - **Industry Size**: The TIC industry is valued at over $240 billion, with a significant portion being outsourced [17] - **Growth Drivers**: Key megatrends driving growth include energy transition, new mobility solutions, sustainability, digitalization, and regulatory compliance [20][22] - **Recurring Revenue**: 33% of ULS's revenue is recurring, stemming from ongoing certification services [15] Financial Performance and Projections - **EBITDA Margin**: The adjusted EBITDA margin was 22.9% last year, with a target of 24% for the current year [38][39] - **Growth Resilience**: ULS has demonstrated resilient growth, averaging nearly 7% compound annual growth over the past decade, even during economic shocks [33] Strategic Initiatives 1. **Capital Allocation**: ULS reinvests approximately 18% of revenue back into the business, focusing on organic growth and capacity expansion [46][48] 2. **M&A Strategy**: The company seeks acquisitions that enhance its capabilities in product testing, inspection, and certification, focusing on technical expertise and service extension [49][50] 3. **Software and Advisory Services**: ULS is optimistic about growth in its software segment, which supports product compliance and supply chain transparency [52][53] Additional Insights - **Impact of Tariffs**: ULS views tariffs as short-term challenges that can lead to increased demand for retesting and recertification services as manufacturers adapt [29][30] - **Energy Transition**: The electrification of various sectors is expected to significantly increase demand for ULS's services, particularly in testing and certification for new energy technologies [24][26] This summary encapsulates the key points discussed during the UL Solutions FY Conference Call, highlighting the company's strategic focus, market dynamics, and financial performance.

Financial Data and Key Metrics Changes - Consolidated revenues increased by 5.2% year-over-year, with organic growth of 7.6% [6][15] - Adjusted EBITDA grew by 22.9% year-over-year, with an adjusted EBITDA margin of 22.8%, up 320 basis points [7][16] - Adjusted net income for Q1 was $80 million, a 31.1% increase from $61 million in the same quarter last year [16] Business Line Data and Key Metrics Changes - Industrial segment revenues rose by 8.1% organically, driven by ongoing certification services and certification testing [7][17] - Consumer segment revenues increased by 7.7% organically, with strong demand across consumer technology and retail products [7][19] - Software and Advisory segment revenues grew by 5.6% organically, with a 9.3% increase in the software service line [20] Market Data and Key Metrics Changes - Growth was observed across all geographic regions, with North America showing particular strength in both industrial and consumer segments [6][62] - The automotive electromagnetic compatibility laboratory in Japan is expected to address a growing market projected to reach $2.7 billion by 2030 [10] Company Strategy and Development Direction - The company is focusing on capacity expansions in HVAC testing facilities and developing a global fire science center to enhance market position [8][9] - Strategic M&A opportunities are being pursued to strengthen market position and drive margin and earnings improvement [26] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment presents both risks and opportunities, but they reaffirmed their full-year 2025 outlook [13][25] - The company is monitoring key performance indicators closely to understand potential impacts from tariffs and macroeconomic conditions [12][13] Other Important Information - The effective tax rate for 2025 is expected to be approximately 26%, up from 16.9% in 2024 due to the implementation of OECD's Pillar Two [26] - The company generated over $100 million in free cash flow and paid down $90 million of debt [7][22] Q&A Session Summary Question: Impact of tariffs on product redesign and manufacturing locations - Management indicated that customers have been making decisions regarding tariffs for several years, and while some adjustments are expected, no material impact has been observed currently [34] Question: M&A strategy in the current macro backdrop - The company continues to engage in conversations about various acquisition opportunities and remains active in pursuing growth through M&A [36] Question: Anticipated impact of tariffs on guidance - Management affirmed their guidance, indicating that they have accounted for increased uncertainty while maintaining confidence in their core business [41] Question: Moderation in new product launches - There has been no meaningful impact on innovation, and management remains close to customers regarding their new product development plans [42] Question: Context on margin expansion in Q1 - Strong operational execution and revenue growth contributed to significant margin improvement, particularly in the Industrial segment [46][48] Question: Growth by geography - North America, especially in industrial sectors, continues to show strong demand, with notable growth also in Asia [62]

Financial Data and Key Metrics Changes - Consolidated revenues increased by 5.2% year-over-year, with organic growth of 7.6% [7][16] - Adjusted EBITDA grew by 22.9% year-over-year, with an adjusted EBITDA margin of 22.8%, up 320 basis points [8][17] - Adjusted net income for Q1 was $80 million, a 31.1% increase from $61 million in the same quarter last year [17] Business Line Data and Key Metrics Changes - Industrial segment revenues rose by 4.4% to $308 million, or 8.1% on an organic basis, driven by ongoing certification services and certification testing [18] - Consumer segment revenues were $304 million, up 6.3% year-over-year, or 7.7% on an organic basis, with strong demand across all service offerings [19] - Software and Advisory segment revenues increased by 4.5% year-over-year to $93 million, with organic growth of 5.6% [21] Market Data and Key Metrics Changes - Growth was observed across all geographic regions, with North America showing particular strength in both industrial and consumer segments [61] - The automotive electromagnetic compatibility laboratory in Japan is expected to address a growing market projected to reach $2.7 billion by 2030 [11] Company Strategy and Development Direction - The company is focusing on capacity expansions in HVAC testing facilities and developing a global fire science center of excellence [9][10] - Strategic investments are being made to align with megatrends such as global energy transition and digitalization [6][30] - The company aims to pursue strategic M&A opportunities to enhance margins and earnings [27] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed the full-year 2025 outlook despite increased macroeconomic uncertainties, expecting mid-single-digit organic revenue growth [25][26] - The company is monitoring key performance indicators closely to navigate potential risks and opportunities [14] Other Important Information - The effective tax rate for 2025 is expected to be approximately 26%, up from 16.9% in 2024 due to new tax regulations [27] - Free cash flow for Q1 was $103 million, up from $84 million in the prior year [24] Q&A Session Summary Question: Impact of tariffs on product redesign and manufacturing - Management noted that customers have been making decisions regarding tariffs for several years, with some already shifting manufacturing locations [34] Question: M&A strategy in uncertain macro backdrop - The company continues to engage in conversations about various acquisition opportunities globally, emphasizing the importance of CapEx as a growth accelerator [36] Question: Anticipated impact of tariffs on guidance - Management affirmed guidance, indicating confidence based on current business visibility and order book [41] Question: Moderation in new product launches - There has been no meaningful impact on innovation, with management maintaining close relationships with customers regarding their product development plans [42] Question: Margin expansion context - Strong operational execution across segments contributed to significant margin improvement, particularly in the Industrial segment [46] Question: Growth by geography - North America, especially in industrial sectors, continues to show strong demand, with notable growth also in Asia [61]