Bilfinger Se · XETR:GBF
Bilfinger — Non-Deal Roadshow (May 2014)
40 slides from Bilfinger's roadshow presentation, May 26, 2014
Slide 1: One Bilfinger – Profitable growth is our mission
May 26 – May 28, 2014 One Bilfinger Profitable growth is our mission Roadshow Scandinavia | Stockholm, Helsinki, Oslo, Copenhagen Andreas Müller, Head of Accounting, Taxes and IR Bettina Schneider, Deputy Head Investor Relations
Slide 2: Agenda
Agenda 1. Bilfinger – Company profile and strategy 2. Facts and figures 3m 2014 3. Financial backup Bilfinger SE Company Presentation | May 26 - 28, 2014 page 2
Slide 3: Latest announcements (May 07, 2014): Major parts of Construction up for sale
Latest announcements (May 07, 2014): Major parts of Construction business segment up for sale Focus on core activities: Engineering and services for industrial facilities, power plants and real estate Major parts of Construction business segment up for sale Output volume of approx. € 800m Following
Slide 4: Latest announcements (May 14, 2014): Planned takeover of GVA
Latest announcements (May 14, 2014): Planned takeover of British real-estate consultants GVA Submittance of takeover offer to shareholders of GVA Grimley Holdings, London Output volume 2014/2015e: approx. € 190m Highly profitable Employees: 1,500 Enterprise value: approx. € 160m i.e. 7 to 8 times EB
Slide 5: Bilfinger at a glance
Bilfinger at a glance ▪ Successful evolution into a leading international engineering and services group ▪ Output volume of € 8.5 billion, adjusted EBITA margin at 4.8% in 2013 ▪ Multinational player with leading positions in attractive markets ▪ Highly diversified customer base: process industry, e
Slide 6: Successful evolution into an engineering and services group
Successful evolution into an engineering and services group Acquisitions | Since 2011 Divestitures | Since 2011 Automation, consulting, electrical, instrumentation and control Australian construction (Valemus), North American construction, technology (E/I&C), engineering and design, integrated facil
Slide 7: Significant improvement in risk and earnings profile in the last 10 years
Significant improvement in risk and earnings profile in the last 10 years 100% 6% 5% 4% 3% Share of output volume / Construction 2% Share of output volume / service-related segments 1% EBITA margin adjusted 0% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Service-related business segments now
Slide 8: Broadening international footprint
Broadening international footprint Organic and external growth strategy to further strengthen non-European business Output volume by region 4% 3% Asia Africa 11% America 37% Germany 2014e 45% Rest of Europe Current structure – from Q2 2014 Construction segment will be presented under discontinued op
Slide 9: New structure fosters internal Group cooperation
New structure fosters internal Group cooperation Segment Industrial Power Building and Facility Construction Focus Process Industry Utilities Real Estate Mobility and Energy Output volume 2013 1) € 3.7 bn (43%) € 1.6 bn (18%) € 2.3 bn (27%) € 1.0 bn (12%) Divisions Industrial Maintenance Power Syste
Slide 10: Further growth in output volume and earnings anticipated for FY 2014
Further growth in output volume and earnings anticipated for FY 2014 Output volume EBITA adjusted Net profit adjusted 8.397 8.586 8.509 409 379 387 235 241 249 2011 2012 2013 2011 2012 2013 2011 2012 2013 in € million in € million in € million EBITA: adjusted for capital gains/losses as well as for
Slide 11: Strategic program 2011 – 2016
Strategic program 2011 – 2016 BEST and Bilfinger Excellence support our targets for 2016 Bilfinger Excellence will take our strategic transformation to the next level, driving topline growth and enhancing Operational excellence efficiency in SG&A functions Growth of higher-margin Dissolution of cu
Slide 12: BEST growth strategy
BEST growth strategy Expansion of higher-margin activities Organic growth Expansion of full-service offering in all our markets strategy Regional expansion and “follow our friends” strategy Leveraging of customer relationships from other divisions Deeper integration Stronger market presenc
Slide 13: Group targets 2016
Group targets 2016 1) Output volume EBITA EBITA Margin Net Profit € 11 - 12 bn ~ € 700 m ~ € 400 m ~ 6% i.e. ~ € 9 EPS € 8.5 bn 4.7% € 397 m € 220 m Absolute targets for output volume and earnings will be adjusted due to the planned sale of major parts of Construction 2011 2016 2011 2016 2011 2016 2
Slide 14: The Bilfinger Investment Case
The Bilfinger Investment Case Robust and predictable business model supported by favorable long-term industry trends Strong structural trends Risk diversification Strong market positions ▪ Outsourcing Broad customer range Industrial: ▪ Service bundling Mostly small project sizes European market lead
Slide 15: Agenda
Agenda 1. Bilfinger – Company profile and strategy 2. Facts and figures 3m 2014 3. Financial backup Bilfinger SE Company Presentation | May 26 - 28, 2014 page 15
Slide 16: 3m 2014: Highlights
3m 2014: Highlights 2014 starts with stable first quarter Output volume and adjusted earnings increase slightly due to acquisitions Orders received and order backlog at prior-year level Systematic implementation of Bilfinger Excellence Sale of concessions activities progressing as planned Disposal o
Slide 17: Slight growth in output volume due to acquisitions
Slight growth in output volume due to acquisitions Output volume Orders received Order backlog +1% 0% -1% 7.570 7.511 1.980 1.986 1.858 1.884 3m 2013 3m 2014 3m 2013 3m 2014 Mar. 2013 Mar. 2014 in € million in € million in € million Bilfinger SE Company Presentation | May 26 - 28, 2014 page 17
Slide 18: Adjusted earnings slightly higher than in Q1 2013
Adjusted earnings slightly higher than in Q1 2013 Adjusted EBITA Adjusted net profit Earnings per Share adjusted +2% continuing operations continuing operations +12% +11% 51 28 0,63 50 25 0,57 3m 2013 3m 2014 3m 2013 3m 2014 3m 2013 3m 2014 in € million in € million in € million EBITA: adjusted for
Slide 19: Operating cash flow shows typical seasonality
Operating cash flow shows typical seasonality Increased CAPEX as planned Operating cash flow Investments in P, P& E Investments in financial assets -6% +52% -96% 41 3m 2013 3m 2014 72 27 -228 3 -241 3m 2013 3m 2014 3m 2013 3m 2014 in € million in € million in € million Bilfinger SE Company Presentat
Slide 20: Industrial
Industrial Organic growth planned for full-year 2014 Output volume by region 2% Markets and highlights Asia ▪ Output volume and EBITA at prior-year level 18% America 21% ▪ EBITA margin decreased slightly to 3.8% (3m 2013: 3.9%) Germany ▪ Organic development 3m 2014: +2% in output volume, -5% in EBIT
Slide 21: Power
Power Situation in our markets differs greatly Markets and highlights Output volume by region ▪ Decrease in output volume also due to lower orders received 11% especially in Q4 2013, however, will increase as the year Asia progresses due to rising volume from major projects ▪ EBITA margin decreased
Slide 22: Building and Facility
Building and Facility Ongoing positive development expected Output volume by region Markets and highlights ▪ Growth in output volume and EBITA 3% Asia ▪ Orders received significantly above prior-year level ▪ EBITA margin stable at 2.1% (3m 2013: 2.1%) 10% ▪ Organic development 3m 2014: America 2014e
Slide 23: Construction
Construction Improved earnings Output volume by region Markets and highlights ▪ Decrease in output volume due to sharp decline in orders 1% Asia received in 2013 ▪ Again, low orders received, however, new infrastructure project in Norway received in April 37% 2014e Germany Outlook 2014 62% Rest of E
Slide 24: Discontinued operations: Concessions
Discontinued operations Concessions Of five projects to be transferred in 2014, two were transferred in 3m 2014: ▪ Proceeds of €56 million ▪ Capital gain of €7 million Remaining portfolio is expected to follow in first half of 2014: ▪ Proceeds of approx. €35 million ▪ Capital gain of approx. €5 mill
Slide 25: Outlook for FY 2014
Outlook for FY 2014 Adjusted for the output volume and earnings of the Construction units up for sale which will be reported under discontinued operations from Q2 2014 Output volume for the Group will increase to at least €8 billion in 2014 (FY 2013 comparable: €7.7 billion) Organic growth is expect
Slide 26: Agenda
Agenda 1. Bilfinger – Company profile and strategy 2. Facts and figures 3m 2014 3. Financial backup Bilfinger SE Company Presentation | May 26 - 28, 2014 page 26
Slide 27: FY 2013 Volume and contract overview
FY 2013 Volume and contract overview Output volume Orders received Order backlog in € million 2012 2013 Change 2012 2013 Change 2012 2013 Change Industrial 3,388 3,653 8% 3,416 3,959 16% 2,530 2,746 9% Power 1,636 1,566 -4% 1,500 1,425 -5% 1,514 1,397 -8% Building and Facility 2,249 2,346 4% 2,373 2
Slide 28: 3m 2014 Volume and contract overview
3m 2014 Volume and contract overview Output volume Orders received Order backlog in € million 3m 2013 3m 2014 Change 3m 2013 3m 2014 Change 3m 2013 3m 2014 Change Industrial 814 824 1% 930 823 -12% 2,630 2,770 5% Power 344 318 -8% 367 418 14% 1,565 1,496 -4% Building and Facility 483 584 21% 521 636
Slide 29: Consolidated income statement
Consolidated income statement in € million 3m 2013 3m 2014 2013 Comments 3m 2014 Output volume 1,858 1,884 8,509 EBITA 50 22 338 • Depreciation of €33m • Effects from first-time consolidation / deconsolidation: €3m EBITA adjusted 50 51 409 • F/X effects of - €1m (ZAR) EBITA margin adjusted 2.7% 2.7%
Slide 30: Organic development Group
Organic development Group Organic development of output volume Organic development of adjusted EBITA +5% -2% -2% +5% -2% +1% -1% -39 +2% -28 -1 -1 +93 +3 1,858 1,884 50 51 3m 2013 Net F/X Organic 3m 2014 3m 2013 Net F/X Organic 3m 2014 acqusitions acqusitions in € million in € million Bilfinger SE C
Slide 31: Overview of earnings adjustments
Overview of earnings adjustments in € million 3m 2013 3m 2014 2013 Comments 3m 2014 EBITA 50 22 338 • Excellence: -€29m Adjustments special items (pre-tax) 0 29 71 • in FY 2013: -€85m Excellence, -€5m capital loss Bilfinger Infrastructure GmbH and €19m capital gain Nigeria EBITA adjusted 50 51 409 E
Slide 32: Cash flow statement
Cash flow statement in € million 3m 2013 3m 2014 2013 Comments 3m 2014 Cash earnings from continuing operations 47 25 289 Decrease due to lower net profit from continuing operations Change in working capital -273 -265 -99 Typical intra-year working capital swing Gains on disposals of non-current
Slide 33: Valuation net debt
Valuation net debt in € million Dec. 31, 2013 Mar. 31, 2014 Comments March 31, 2014 Cash and cash equivalents 669 451 ▪ See cash flow statement for details of change ▪ Including €500 million corporate bond Financial debt (excluding non-recourse) -545 -540 (due Dec. 2019) Net cash/ net debt 124 -89 P
Slide 34: Balance sheet
Balance sheet Assets Equity and liabilities 6,397 -135 -135 6,397 Assets held for sale (Concessions) 350 -6 +13 328 Liabilities held for sale (Concessions) Cash and cash equivalents 451 -218 -157 2,296 Other current liabilities Receivables and other current assets +98 2,471 +12 342 Prepayments recei
Slide 35: FY 2013 ROCE per segment
FY 2013 ROCE per segment Capital employed Return ROCE WACC Value added in € million in € million in % in % in € million 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 Industrial 1,351 1,536 206 232 15.2 15.1 9.25 8.75 81 98 Power 384 475 125 123 32.5 25.9 9.25 8.75 89 81 Building and Facility 525
Slide 36: Financial overview
Financial overview in € million 2010 2011 2012 2013 Output volume 7,983 8,397 8,586 8,509 Orders received 7,854 7,690 8,304 8,296 Order backlog 8,429 7,557 7,388 7,411 1) EBITA adjusted 346 379 387 409 EBIT 305 344 381 287 EBT 269 316 347 244 Net profit adjusted 1) 2) 205 235 241 249 3) Net profit 2
Slide 37: Shareholder structure
Shareholder structure Shareholder structure Dec. 31, 2013 ▪ Free float of 96% according to Deutsche Boerse Treasury Stock 4% ▪ High proportion of institutional investors Retail Investors 12% ▪ International shareholder base Institutional Investors: 84% Switzerland 24% Treasury Stock Germany 21% ▪ 1,
Slide 38: Financial calendar and share facts
Financial calendar and share facts 52 week high / low: € 93.05 / € 68.67 (as of May 20, 2014) 2014 Closing price May 20, 2014 € 84,02 Aug. 11, 2014 Interim Report Q2 Nov. 12, 2014 Interim Report Q3 Market cap: 1) € 3.9 bn (as of May 20, 2014) Shares outstanding: 1) 46,024,127 ISIN / Ticker abbreviat
Slide 39: Other investor information
Other investor information For further information please contact: in € per share / after rights issue adjustments 2010 2011 2012 2013 1) Andreas Mueller Earnings 6.43 8.93 6.26 3.91 2) Earnings adjusted 4.64 5.32 5.46 5.64 Head of Accounting, Taxes and Investor Relations Cash flow 5.53 6.37 5.26 3.
Slide 40: Disclaimer
Disclaimer This presentation has been produced for support of oral information purposes only and contains forward- looking statements which involve risks and uncertainties. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectation