Bilfinger Se · XETR:GBF
Bilfinger — Non-Deal Roadshow (August 2021)
33 slides from Bilfinger's roadshow presentation, August 2021
Slide 1: Bilfinger SE Company Presentation
Bilfinger SE Bilfinger SE Company Presentation August, 2021
Slide 2: Overview and strategic outline
Overview and strategic outline
Slide 3: Bilfinger at a glance
Bilfinger at a glance Leading international industrial services provider Efficiency enhancement of assets, ensuring a high level of availability and €3.46bn revenue reducing maintenance costs Clear 2-4-6 strategy with two service lines, four business units and six focus industries thereof recu
Slide 4: 2-4-6 still holds
2-4-6 still holds 2 Service Lines, 4 Business Units, 6 Focus Industries Our ambition We engineer and deliver process plant performance Where 2 Service Lines 4 Business Units 6 Focus Industries to play E&M – Engineering & E&M Europe Chemicals & Pharma & Maintenance E&M North America Petroch
Slide 5: Global trends
Global trends Aging Assets & ESG / Climate Skilled Labor Data & Artificial Asset Integrity Change Shortage Intelligence Europe & US: Aging assets ▪ CO2 limits Europe ▪ Machine learning ▪ Increasing maintenance ▪ Emissions & Air pollution ▪ Demographics ▪ Predictive / prescriptive costs ▪ Clean energ
Slide 6: Bilfinger core capabilities
Bilfinger core capabilities Skilled labor Domain Expertise Digitalization ▪ Europe’s #1 Maintenance Services ▪ Engineering / Process knowledge ▪ Bilfinger Digital Next Company ▪ Focus on key industries ▪ Convergence of BMC & BCAP to ▪ Leading Employer Branding ▪ Customer intimacy / collaboration dig
Slide 7: Our capabilities addressing global trends
Our capabilities addressing global trends Global Trends affecting our business Bilfinger Aging Assets & ESG / Climate Skilled Labor Data & Artificial capabilities Asset Integrity Change Shortage Intelligence Skilled Fabric maintenance Circular economy Employer of choice Cloud analytics labor Domain
Slide 8: We never compromise on integrity and safety
We never compromise on integrity and safety Number and severity of incidence continues to fall Safety is good business Integrity is non-negotiable Safety KPIs (based on 1m man hours) 1 0.84 0.71 0.67 Fully integrated Prevent Established compliance Detect culture 0.23 Self- 0.16 Sustainable focus opt
Slide 9: Service Lines
2 Service Lines Engineering & Maintenance Technologies FY 2020: E&M Europe: Revenues €2,221m, EBITA adj. €69m FY 2020: Revenues €498m, EBITA adj. -€10m FY 2019: E&M International: Revenues €521m, EBITA adj. -€21m E&M covers the entire lifecycle of an industrial plant: T provides solutions for the pr
Slide 10: Engineering & Maintenance: Excellence in services covering the lifecycle of industrial plants
2 Service Lines Engineering & Maintenance: Excellence in services covering the lifecycle of industrial plants Engineering Maintenance Turnarounds AVR Chevron Neste refinery The Netherlands, Duiven USA, Offshore, Gulf of Mexico Finland, Porvoo • Conceptual engineering and construction • Industrial an
Slide 11: Technologies: Excellence in products, manufacturing and innovative solutions
2 Service Lines Technologies: Excellence in products, manufacturing and innovative solutions Nuclear services New energy Fabrication & Installation EDF Hinkley Point Cryostar LNG stations BP Deutschland (Ruhr Oel GmbH) United Kingdom Germany, Poland, France, BeNe Germany, Gelsenkirchen-Scholven • Ne
Slide 12: Mid-term targets
Mid-term targets
Slide 13: How we will drive growth going forward
How we will drive growth going forward Growth areas Ambition – Top line 1 Integrate product & ▪ Roll out service products (BMC,BTC,BCAP etc.) Facilitate growth services portfolio ▪ Focus on growth by business line and “white spots” 2 ‘Big-ticket’ ▪ Integrated project organization to combine group sc
Slide 14: Key levers for gross margin growth
Key levers for GROSS MARGIN growth Target of 12% confirmed Operational levers Ambition – Bottom line Lean organization ▪ Operational excellence programs in full swing Performance culture and culture ▪ Launch of further Lean programs following successful pilot KPI-driven ▪ Standardize KPIs to monitor
Slide 15: SG&A reduced by over €100 million
Over the last 5 years, SG&A has been reduced by over €100 million Target of 7% confirmed from 2022 Degree of target achievement ERP/SAP Reduction of #legal entities Adjusted SG&A [€ million, %] in terms of revenue 100% Revenues, € billion as of Jun. 30, 2021 4.2 4.3 4.0 4.2 279 ~45% 3.5 232 90% as o
Slide 16: Financial targets 2024
Financial targets 2024 Revenues EBITA ROCE Free Cash margin reported Flow sustainably min. reported >5 5 8-10 >200 € billion % % € million Investment Grade (mid-term perspective) Sustainable dividend stream going forward Policy: 40 to 60% of adjusted net profit Bilfinger SE | Company Presentation |
Slide 17: Financials Q2 2021
Financials Q2 2021
Slide 18: Q2 2021
Q2 2021 Continued positive momentum in volumes and earnings Markets • Supportive dynamics in most regions • Strongest quarter in more than a year +16% org. • With >€1 billion again on very good level Orders received • Significant contract wins in Technologies and E&M International +29% org. • Strong
Slide 19: Capital allocation
Capital allocation Balanced and shareholder-friendly approach in line with financial policy M&A and organic growth Early debt redemption Distribution to Shareholders investments €108.5 million €250 million Several hundred million Euros Early redemption of promissory note Proposal to AGM 2022: Ex
Slide 20: Capital allocation priorities
Capital allocation priorities Financial Intended M&A policy Dividend Policy Criteria ▪ Actual rating S&P: ▪ Floor of €1.00 is confirmed ▪ EBITA accretive one year after BB/outlook stable ▪ Sustainable dividend stream integration ▪ Policy to maintain conservative going forward: 40 to 60% of ▪ ROCE ex
Slide 21: Markets: E&M Europe
Markets: E&M Europe Industries Overall %* trend • Market starts to recover and gains momentum Chemicals & • Majority of large investments going forward not impacted by the COVID-19 40% Petrochem pandemic • Deferred work/shutdowns expected to raise activity levels in 2021/22 • ESG climate change driv
Slide 22: Markets: E&M International
Markets: E&M International Industries Overall %* trend • Trend for expansion and modernization projects in Middle East (ME) intact Chemicals & 20% • Attractive project pipeline in NA (e.g. petrochemical companies and Petrochem refineries put larger emphasis on maintenance projects) • Continued growt
Slide 23: Markets: Technologies
Markets: Technologies Industries Overall %* trend • Energy transition focus in all our regions, esp. Europe and NA Energy & 40% • Nuclear demand for new builds and maintenance increasing, esp. in France, Utilities UK, Finland and demand increasing for decommissioning in Germany • Mega trends remain
Slide 24: Orders received again above €1 billion
Orders received again above €1 billion due to contract awards in North America and Technologies, solid development in Europe Development of orders received 2020 2021 Orders received Q2 Q3 Q4 Q1 Q2 • Increase by 14% (org.: +16%), strongest quarter in more than a year +14%/+16% org. • Good development
Slide 25: Revenue increase of close to 30% org.
Revenue increase of close to 30% org. against COVID-19 impacted prior-year quarter Strong EBITA with adjustments meanwhile on a low level Development of revenue and profitability Revenue 2020 2021 • 23% (org.: +29%) above prior-year quarter Q2 Q3 Q4 Q1 Q2 which was heavily impacted by COVID-19 Reven
Slide 26: Gross margin further improved to 9.7%
Gross margin further improved to 9.7% Adjusted SG&A ratio at a very good 7.2%, still benefiting from COVID-19 related lower expense level Gross profit (€ million) Adjusted selling and administrative expenses (€ million) 95 79 (9.7%) 2 0 3 (9.4%) -75 -70 -73 34 (4.3%) -73 -70 -70 (-9.2%) (-8.4%) (-7.
Slide 27: Segment E&M Europe
Segment E&M Europe: Substantial revenue growth at a very good margin level Development of revenue and profitability Orders received 2020 2021 • +5% (org.: +3%) against prior-year quarter Q2 Q3 Q4 Q1 Q2 Revenue +36%/+34% org. • Substantial increase of 36% (org.: +34%) Revenue 665 • High growth rates
Slide 28: Segment E&M International
Segment E&M International: Encouraging order pipeline and intake, continued focus on EBITA improvement with higher capacity utilization Development of revenue and profitability Orders received 2020 2021 • +48% (org.: +60%), supported by major maintenance contract extension in North Q2 Q3 Q4 Q1 Q2 Am
Slide 29: Segment Technologies
Segment Technologies: Strong increase in orders received, solid revenue development and pleasing EBITA margin Development of revenue and profitability Orders received 2020 2021 • +48% (org.: +51%), strong increase Q2 Q3 Q4 Q1 Q2 compared to prior-year quarter especially due to project win in Biophar
Slide 30: Net profit and free cash flow
Free cash flow substantially below prior year due to growth-related working capital consumption, year-to-date development on prior-year level when correcting for last year’s tax deferrals Net profit 1) (€ million) Free cash flow 1) (€ million) 13 12 139 129 -31 -30 -60 -43 Q2 2020 Q2 2021 Q2 2020 Q2
Slide 31: Cash-in of €458 million in Apleona proceeds
Significant year-on-year DSO improvement, but growth-related increase in net trade assets Cash-in of €458 million in Apleona proceeds on May 10 Development of net liquidity Net liquidity 1) (€ million) Cash flow development year-to-date (€ million) excl. IFRS 16 -95 216 1 -12 -1 469 -27 -103 -13 -3
Slide 32: Outlook 2021
Outlook 2021 Actual FY 2020 Outlook FY 2021 Revenue €3,461 million Significant growth EBITA adjusted margin to exceed 2019 EBITA adjusted / margin €20 million / 0.6% pre-crisis level and reach ~3 percent Free cash flow reported €93 million Positive, but below prior year Underlying assumptions: • COV
Slide 33: 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