Bilfinger Se · XETR:GBF
Bilfinger — Non-Deal Roadshow (October 2016)
55 slides from Bilfinger's roadshow presentation, October 2016
Slide 1: Bilfinger SE Company Presentation
October 2016 Bilfinger SE Company Presentation
Slide 2: Agenda
Agenda 1. Bilfinger at a glance 2. Sale of Building and Facility 3. Industrial at a glance 4. Update on Power 5. Facts and Figures Q2 2016 6. Financial backup Bilfinger SE | Company Presentation | October 2016 page 2
Slide 3: Bilfinger at a glance
Bilfinger at a glance ▪ Multinational player with leading positions in attractive markets ▪ High-quality services provider and partner to our customers € 5.0bn output volume ▪ Strong customer base with long-term relationships ▪ Approx. 60% recurring business recurring business ~60% ▪ 2015: Output vo
Slide 4: Leading European engineering and services group
Leading European engineering and services group Segment Industrial Power Service Focus Asia Services for Process Industry Utilities Africa Output volume 2015 € 3.7bn (76%) € 1.3bn (24%) 3% 5% Germany Adj. EBITA 2015 / margin € 128m / 3.5% € -69m / -5.4% America 23% 17% Divisions Industrial Maintenan
Slide 5: Program to enhance efficiency in administration
Program to enhance efficiency in administration Optimize administrative processes, reduce costs Streamlining of Group GROUP HEAD- SAVINGS Annual savings of roughly €100 headquarters QUARTERS EFFECTS million from 2018 (initial effects Commitment to Mannheim from 2017) location Discussions wit
Slide 6: Agenda
Agenda 1. Bilfinger at a glance 2. Sale of Building and Facility 3. Industrial at a glance 4. Update on Power 5. Facts and Figures Q2 2016 6. Financial backup Bilfinger SE | Company Presentation | October 2016 page 6
Slide 7: Attractive pricing with potential further upside
Attractive pricing with potential further upside Sale of Building and Facility to EQT was signed on June 02, 2016 and closed beginning of September 2016 Enterprise value: €1.4 billion EV/EBITA multiple: 11 times FY 2016e Purchase price/Equity value: €1.2 billion - Thereof vendor claim agreement: €10
Slide 8: Sale of Building and Facility provides Bilfinger with significant amount of funds
Sale of Building and Facility provides Bilfinger with significant amount of funds Considerations regarding allocation of funds Strategic investments and acquisitions in Industrial business Further strengthen the company’s capital structure Bilfinger SE | Company Presentation | October 2016 Page
Slide 9: Pure play Industrial opens attractive strategic opportunities
Pure play Industrial opens attractive strategic opportunities Growth Additional resources to actively participate in ongoing market consolidation and to invest in growth areas Markets Distinct customer base with stronger management focus No restraints from ‘the other business‘ Perception Cle
Slide 10: Agenda
Agenda 1. Bilfinger at a glance 2. Sale of Building and Facility 3. Industrial at a glance 4. Update on Power 5. Facts and Figures Q2 2016 6. Financial backup Bilfinger SE | Company Presentation | October 2016 page 10
Slide 11: Industrial at a glance
Industrial at a glance 2015: Output volume of € 3.65 billion, adjusted EBITA of € 128 million Approx. 30,000 employees € 3.65bn output volume Customer focus: Process Industry i.e. chemicals, pharma, oil and gas, energy thereof recurring business ~70% Approx. 70% recurring business Four div
Slide 12: Strong market position in Europe and strong potential to expand in faster growing regions
Strong market position in Europe and strong potential to expand in faster growing regions outside Europe Number 1 industrial services provider in various markets in Europe (German-speaking countries, Nordics, UK, Offshore North-Sea, BeNe, Central-Eastern Europe) Combination of engineering, const
Slide 13: Bilfinger helps its customers to optimize their asset performance
Bilfinger helps its customers to optimize their asset performance CONVERSION / MODERNIZATION / EXTENSION DISMANTLING/ REMOVAL Decommissioning CONSULTING & CONSTRUCTION Asset Life ENGINEERING OPERATIONS Cycle and Plant Optimizatio SERVICES Installation / Service Design Commissioning Portfolio MAINTEN
Slide 14: Good long-term perspectives in our markets
Good long-term perspectives in our markets Customers Medium term Long term Oil and Gas Imbalance between supply and demand on the raw Regulation of the supply and demand situation materials markets Reduction of over-capacities Over-capacity among our customers Increasing demand with limite
Slide 15: Bilfinger's market position
Four strategic goals will solidify and enhance Bilfinger’s market position Markets Services / Innovation Where do we participate in growth markets? How do we differentiate from competitors? Strengthen service Enhance strong Establish local portfolio in Increase market position / presence in selected
Slide 16: Digitization / Industry 4.0: Bilfinger with a good starting position
Digitization / Industry 4.0 Bilfinger with a good starting position Digitization trend will sustainably change the processes and assets of our customers Market expects significant efficiency increase in the process industry through Industry 4.0 Maintenance processes considered to have one of t
Slide 17: Digitization / Industry 4.0: From internal process optimization to new products
Digitization / Industry 4.0 From internal process optimization to the development of new products and services Examples: Remote monitoring New Smart metering products and services Remote Maintenance Predictive Maintenance Integration and Client service portals collaboration Supplier port
Slide 18: Digitization / Industry 4.0: Various digital products and services already in use
Digitization / Industry 4.0 Various digital products and services already in use Condition Monitoring: VibraCheck iMaintenance: intelligent maintenance Autonomous condition monitoring Mobile application for optimization of system for vibration measurement inspection and maintenance intervals F
Slide 19: Further change to a knowledge-based partnership
Further change from “provider of single services relationship” to a “knowledge-based partnership“ Simple Supply and Service Strategic Partnership Relationship Individual Services Bundling of Services Integrated Asset Service Rotating Equipment Segment Mechanical Services System Service Provider Stat
Slide 20: Summary
Summary ▪ Strong position as market leader in Europe ▪ Faster growing markets outside Europe ▪ Increasing demand for advanced asset performance services ▪ Significant resources available to exploit growth potentials Divestment of Building and Facility supports the funding Bilfinger SE | Company Pres
Slide 21: Agenda
Agenda 1. Bilfinger at a glance 2. Sale of Building and Facility 3. Industrial at a glance 4. Update on Power 5. Facts and Figures Q2 2016 6. Financial backup Bilfinger SE | Company Presentation | October 2016 page 21
Slide 22: Power at a glance
Power at a glance 2015: Output volume of € 1.3 billion, adjusted EBITA of € -69 million Approx. 10,000 employees € 1.3bn output volume Customer focus: Energy sector Approx. 80% project business project business ~80% thereof Approx. 10,000 employees Bilfinger SE | Company Presentation | Octob
Slide 23: Update on Power: Process is now geared towards sale of single units
Update on Power: Process is now geared towards sale of single units Result of the selling process until June 2016: None of the bids for the entire business reflect the true value A number of attractive indicative bids for single units have been received even without targeted marketing approach S
Slide 24: Agenda
Agenda 1. Bilfinger at a glance 2. Sale of Building and Facility 3. Industrial at a glance 4. Update on Power 5. Facts and Figures Q2 2016 6. Financial backup Bilfinger SE | Company Presentation | October 2016 page 24
Slide 25: January to June 2016: Business Highlights
January to June 2016: Business Highlights Business development in line with expectations ▪ Adjusted EBITA: substantial improvement compared to weak prior year ▪ Industrial: book to bill at 1, earnings at prior-year level, efficiency measures taking effect ▪ Power: orders received and output volume d
Slide 26: January to June 2016: Strategic Highlights
January to June 2016: Strategic Highlights Sale of Building and Facility to EQT for EV of € 1.4 bn ▪ Pure play Industrial opens new perspectives ▪ Cash inflow allows for strategic investments in growth fields ▪ Power business will be further developed to optimize value ▪ Realignment of administratio
Slide 27: Decrease in output volume and orders received as expected
January to June 2016: Decrease in output volume and orders received as expected Output volume Orders received Order backlog -11% -11% -24% organic -8% organic -8% organic -20% 2,412 2,297 2,141 3,537 2,039 2,677 Q1-Q2 2015 Q1-Q2 2016 Q1-Q2 2015 Q1-Q2 2016 Q1-Q2 2015 Q1-Q2 2016 in € million in € mill
Slide 28: Substantial improvement in earnings compared to weak prior year
January to June 2016: Substantial improvement in earnings compared to weak prior year Adjusted EBITA Adjusted net profit Net profit* -13 -15 -134 -59 -48 -439 Q1-Q2 2015 Q1-Q2 2016 Q1-Q2 2015 Q1-Q2 2016 Q1-Q2 2015 Q1-Q2 2016 in € million in € million in € million All figures refer to continuing oper
Slide 29: Operating cash flow below prior-year level due to restructuring payments
January to June 2016: Operating cash flow below prior-year level due to restructuring payments as well as increase in working capital Operating cash flow Free cash flow -22 -139 -124 -285 Q1-Q2 2015 Q1-Q2 2016 Q1-Q2 2015 Q1-Q2 2016 in € million in € million All figures refer to continuing operations
Slide 30: Business development in both segments as expected
January to June 2016: Business development in both segments as expected Output volume* EBITA adjusted 45 Industrial Power 76% 24% -17 Industrial Power in € million Q1-Q2 2016 Q1-Q2 2015 Year-on-year in € million Q1-Q2 2016 Q1-Q2 2015 Year-on-year Industrial 1,622 1,781 -9% Industrial 45 48 -6% Power
Slide 31: Industrial: Stable demand for maintenance services in chemical and pharmaceutical industries
Industrial: Stable demand for maintenance services in chemical and pharmaceutical industries Market situation ▪ Europe: Output volume by region Good demand for turnarounds Industrial scaffolding solid; highly-competitive environment for plant insulation in GER 2% Business development in British and
Slide 32: Industrial: Book-to-bill at 1
Industrial: Book-to-bill at 1 Q2 2016 Quarterly development in € million Year-on-year Organic reported ▪ Organic development in orders Output volume 834 -12% -8% received almost stable Orders received 825 -6% -2% ▪ Lower EBITA due to lower output volume, mainly in European oil EBITA adjusted 31 -21%
Slide 33: Power: Demand in project business remains low
Power: Demand in project business remains low Market situation ▪ Fossil fuel power plants: Output volume by region Germany and other European countries: Substantial price pressure due to market over-capacities, demand for services declining as a result of insufficient capacity 27% utilization and pr
Slide 34: Power: Reduction in output volume due to sustained market weakness
Power: Reduction in output volume due to sustained market weakness Q2 2016 Quarterly development in € million Year-on-year Organic reported ▪ Orders received on low level due Output volume 258 -19% -13% to substantially fewer projects in the market for fossil fuel power Orders received 189 -28% -20%
Slide 35: Outlook FY 2016
Outlook FY 2016 Outlook confirmed despite weak environment for US project business Efficiency enhancement measures with higher impact in second half Output volume Adjusted EBITA in € million 2015 expected 2016 2015 expected 2016 significant decrease to Industrial 3,650 128 at prior-year level about
Slide 36: Outlook FY 2016: Special items
Outlook FY 2016 Special items Backup In 2016, from today’s perspective, we expect the following significant special items: Capital gain from the sale of the Building and Facility segment of ~ €500 million One-time expenses for the program to reduce administrative expenses in the high double-digit mi
Slide 37: Agenda
Agenda 1. Bilfinger at a glance 2. Sale of Building and Facility 3. Industrial at a glance 4. Update on Power 5. Facts and Figures Q2 2016 6. Financial backup Bilfinger SE | Company Presentation | October 2016 page 37
Slide 38: Q2 2016 Volume and contract overview
Q2 2016 Volume and contract overview Backup Output volume Orders received Order backlog in € million Q2 2016 Q2 2015 Change Q2 2016 Q2 2015 Change Q2 2016 Q2 2015 Change Industrial 834 946 -12% 825 876 -6% 2,001 2,416 -17% Power 258 320 -19% 189 262 -28% 650 1,050 -38% Consolidation/ Other 5 15 12 4
Slide 39: Q1-Q2 2016 Volume and contract overview
Q1-Q2 2016 Volume and contract overview Backup Output volume Orders received Order backlog in € million H1 2016 H1 2015 Change H1 2016 H1 2015 Change H1 2016 H1 2015 Change Industrial 1,622 1,781 -9% 1,607 1,716 -6% 2,001 2,416 -17% Power 505 607 -17% 419 586 -28% 650 1,050 -38% Consolidation/ Other
Slide 40: FY 2015 Volume and contract overview (new structure)
FY 2015 Volume and contract overview (new structure) Backup Output Volume Orders received Order backlog in € million FY 2015 FY 2015 FY 2015 Industrial 3,650 3,302 2,101 Power 1,284 986 762 Consolidation/ Other 68 13 39 Continuing Operations 5,002 4,301 2,902 Bilfinger SE | Company Presentation | Oc
Slide 41: Organic development output volume
Organic development output volume Backup in € million Q2 2015 Δ Net acquisitions Δ F/X Δ Organic Q2 2016 Industrial 946 -12 -1% -21 -3% -79 -8% 834 -12% Power 320 -12 -3% -9 -3% -41 -13% 258 -19% Continuing Operations 1,281 -25 -2% -30 -2% -129 -10% 1,097 -14% in € million H1 2015 Δ Net acquisitions
Slide 42: Organic development orders received
Organic development orders received Backup in € million Q2 2015 Δ Net acquisitions Δ F/X Δ Organic Q2 2016 Industrial 876 -14 -2% -17 -2% -20 -2% 825 -6% Power 262 -12 -5% -8 -3% -53 -20% 189 -28% Continuing Operations 1,184 -26 -2% -25 -2% -107 -9% 1,026 -13% in € million H1 2015 Δ Net acquisitions
Slide 43: Organic development EBITA adjusted
Organic development EBITA adjusted Backup in € million Q2 2015 Δ Net acquisitions Δ F/X Δ Organic Q2 2016 Industrial 39 -1 -2% -1 -2% -6 -17% 31 -21% Power -53 0 -1% 2 +3% 40 +77% -11 +79% Continuing Operations -34 -1 -2% 1 +3% 36 +105% 2 +106% in € million H1 2015 Δ Net acquisitions Δ F/X Δ Organic
Slide 44: Income statement
Income statement Backup in € million Q1-Q2 2016 Q1-Q2 2015 FY 2015 Comments Q1-Q2 2016 Output volume 2,141 2,412 5,002 EBITA -118 -44 -157 EBITA adjusted -13 -59 -23 See separate slide „Overview of earnings adjustments“ EBITA margin adjusted -0.6% -2.4% -0.5% Amortization 6 338 344 FY 2016e: ~€10m E
Slide 45: Overview of earnings adjustments
Overview of earnings adjustments Backup in € million Q1-Q2 2016 Q1-Q2 2015 FY 2015 Comments Q1-Q2 2016 EBITA -118 -44 -157 In Q1-Q2 2016: restructuring (particularly Power) €43m Sale of Engineering Services Asian Pacific and MCE Stahlbau, reversal of the acquisition of Mauell as well as sales relate
Slide 46: Balance sheet
Balance sheet Backup Assets Equity and Liabilities 4,596 -589 -589 4,596 -98 1,048 Liabilities held for sale Assets held for sale 1,584 -269 Cash and cash equivalents 196 -231 -232 1,322 Other current liabilities Receivables and other current assets -9 Prepayments received 1,378 -2 144 +3 96 Other n
Slide 47: Valuation net debt
Valuation net debt Backup in € million Jun. 30, 2016 Dec. 31, 2015* Comments Jun. 30, 2016 Cash and cash equivalents 196 427 See cash flow statement for details of change Financial debt -523 -526 Including €500 million corporate bond (due Dec. 2019) Net cash (+) / net debt (-) -327 -99 Increase due
Slide 48: Cashflow statement
Cashflow statement Backup in € million Q1-Q2 2016 Q1-Q2 2015 FY 2015 Comments Q1-Q2 2016 Cash earnings from continuing operations -81 -49 -122 Typical intra-year increase in working capital, though more pronounced Change in working capital -218 -51 203 as in previous year. Power in previous year wit
Slide 49: Discontinued operations: Building and Facility
Discontinued operations: Building and Facility Backup in € million H1 2016 H1 2015 Change FY 2015 ▪ The Building, Facility Services and Real Estate divisions Output volume 1,165 1,183 -2% 2,501 were sold in June 2016 to financial investor EQT, the Orders received 1,207 1,774 -32% 3,286 transaction i
Slide 50: Financial overview
Financial overview New in € million 2011 2012 2013 2014 2015 2015 Output volume 8,397 8,586 7,552 6,246 6,482 5,002 Orders received 7,690 8,304 7,513 5,510 6,825 4,301 Order backlog 7,557 7,388 6,476 4,401 4,824 2,902 1) EBITA adjusted 379 387 415 262 186 -23 EBITA 379 432 349 207 161 -157 1) 2) Net
Slide 51: Shareholder structure
Shareholder structure Jun. 30, 2016 Shareholder structure Treasury Stock 4% ▪ High proportion of institutional investors Undisclosed/ Retail ▪ International shareholder base Investors 35% ▪ Free float according to Deutsche Boerse: 70.39% Institutional Investors: 61% Cevian Capital 26% Treasury Stock
Slide 52: Financial calendar and share facts
Financial calendar and share facts 52 week high / low: € 45.35 / € 25.05 (as of October 27, 2016) November 10, 2016 Interim Report Q3 2016 Closing price € 32.17 (as of October 27, 2016) Market cap: 1) € 1.5 bn (as of October 27, 2016) February 14, 2017 1) Shares outstanding: 46,024,127 Preliminary R
Slide 53: Bilfinger bond and rating
Bilfinger bond and rating ISIN / Stock exchange DE000A1R0TU2 Rating Agency Standard & Poors abbreviation WKN A1R0TU Current Corporate BB+ / Stable Outlook / B Credit Rating Listing Luxembourg (official trading) Emission volume € 500 million Interest coupon 2.375% Maturity December 07, 2019 Closing 1
Slide 54: Other investor information
Other investor information in € per share 2011 2012 2013 2014 2015 For further information please contact: 1) Earnings 8.93 6.26 3.91 -1.62 -11.54 Bettina Schneider Earnings adjusted 2) 5.32 5.46 5.69 3.62 -0,58 Head of IR Cashflow 6.37 5.26 4.76 0.77 0.88 3) Phone: +49 (0) 621 / 459-2377 Dividend 3
Slide 55: 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 expectations