Bilfinger Se · XETR:GBF
Bilfinger — Non-Deal Roadshow (February 2021)
37 slides from Bilfinger's roadshow presentation, February 2021
Slide 1: Bilfinger SE Company Presentation
Bilfinger SE Bilfinger SE Company Presentation February 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: Strategic Assumptions
Strategic Assumptions Geographic Industry Digitalization Engineering & War for focus focus Maintenance and talent Technologies ▪ Europe ▪ Chemicals & ▪ Enabling opportunity ▪ Technologies ▪ Skilled blue collar is Petrochemicals support Engineering a differentiator in the ▪ North America ▪ Driving pr
Slide 9: Strategic Imperatives
Strategic Imperatives Unique service offering/ Integrity & HSE People Differentiators Asset light model Attract ▪ Multi-service provider ▪ ROCE focus ▪ We will not compromise Motivate ▪ Continue to innovate our service ▪ Strict working capital Retain and commercial offering management Develo
Slide 10: 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 optimizing Sustainabl
Slide 11: 2 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 12: 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 13: 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 14: Mid term targets
Mid term targets
Slide 15: 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 ▪ Integrated project organization to combine group scale & ‘Big-ti
Slide 16: 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 17: Over the last years, SG&A has been 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 [mEUR, %] 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 of De
Slide 18: Financial targets 2024
Financial targets 2024 Revenues EBITA ROCE Free Cash margin reported Flow sustainably min. reported >5 5 8-10 >200 €bn % % €m Investment Grade (mid-term perspective) Sustainable dividend stream going forward Policy: 40 to 60% of adjusted net profit Bilfinger SE | Company Presentation | February 2021
Slide 19: Capital allocation priorities
Capital allocation priorities Financial Intended M&A policy Dividend Policy1 Criteria ▪ Actual rating S&P: BB-/outlook ▪ Floor of €1.00 is confirmed ▪ EBITA accretive one year after stable ▪ Sustainable dividend stream integration ▪ Policy to maintain conservative going forward: 40 to 60% of ▪ ROCE
Slide 20: Financials Q4 2020
Financials Q4 2020
Slide 21: Q4 2020: Resilient business model and high cost agility
Q4 2020: Resilient business model and high cost agility ensured positive results and cash flow despite substantial revenue decrease Orders FY 2020: -7% org., lower orders in Oil & Gas, slow US project market received Q4: +3% org., especially strong in Europe FY 2020: -17% org., European business qui
Slide 22: Dividend proposal recovers last year's dividend reduction
Q4 2020: Strong cash generation in Q4 allowed for essentially full repayment of tax and social security deferrals Dividend proposal recovers last year’s dividend reduction • Reported free cash flow positive at €93m, essentially all deferred taxes and social security contributions repaid Liquidity •
Slide 23: Markets: E&M Europe
Markets: E&M Europe Industries Overall %* trend • Market slowly starts to recover with benefit of low feedstock prices Chemicals & 40% • Ongoing project investments still proceeding Petrochem • Deferred work/shutdowns expected to raise activity levels in 2021/22 • ESG climate change drivers still ho
Slide 24: Markets: E&M International
Markets: E&M International Industries Overall %* trend Chemicals & • Trend for expansion and modernization projects in ME intact 20% Petrochem • Projects delayed but attractive project pipeline in NA • Continued growth in ME population and industry drives further development Energy & of alternative
Slide 25: Markets: Technologies
Markets: Technologies Industries Overall %* trend • Energy transition focus in all our regions, esp. Europe and USA 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 26: Orders received especially strong in Europe
Orders received especially strong in Europe Development of orders received Orders received 2019 2020 FY • Q4: -3%; however organically +3% Q4 Q1 Q2 Q3 Q4 2019 2020 €110m of Hinkley Point C orders have been -3%/+3% org. called and booked in the quarter -10%/-7% org. 1,057 1,060 1,024 • Good level in
Slide 27: European business very resilient despite lower volumes in Oil & Gas
European business very resilient despite lower volumes in Oil & Gas EBITA adjusted margin close to prior-year level despite significantly lower revenues Development of revenue and profitability Revenue 2019 2020 FY • FY: -20% (org.: -17%) below prior-year due Q4 Q1 Q2 Q3 Q4 2019 2020 to Covid-19 / o
Slide 28: Gross margin in Q4 close to 12%-target and above prior year level
Gross margin in Q4 close to 12%-target and above prior year level Gross profit (€ million) 121 412 (11.3%) (9.5%) 105 (11.9%) 89 296 (10.2%) (8.6%) Q4/19 Q3/20 Q4/20 FY 19 FY 20 Bilfinger SE | Company Presentation | February 2021 page 28
Slide 29: SG&A expenses clearly below €300 million
SG&A expenses clearly below € 300 million, also supported by one-time effects Current quarterly run-rate at €75 million Adjusted selling and administrative expenses (€ million) 12 33 18 6 7 -75 -73 -310 -96 (-8.7%) (-8.2%) -379 (-8.9%) (-8.9%) (-8.8%) -69 -65 -291 (-7.9%) (-7.4%) (-8.4%) -83 -347 (-
Slide 30: E&M Europe: Proves high resilience despite lower volumes
E&M Europe: Proves high resilience despite lower volumes in oil & gas Q4 adjusted EBITA on last year’s level despite lower revenues Development of revenue and profitability Orders received 2019 2020 FY • Q4: +10% (org.: +12%) based on framework Q4 Q1 Q2 Q3 Q4 2019 2020 contracts as well as on projec
Slide 31: E&M International: Top-line still under pressure
E&M International: Top-line still under pressure due to slow project pipeline EBITA adjusted in Q4 positive on low level Development of revenue and profitability Orders received 2019 2020 FY • Q4: -72% (org.: -69%), in both regions Q4 Q1 Q2 Q3 Q4 2019 2020 lack of contract awards throughout 2020 43%
Slide 32: Technologies: Again, positive contribution
Technologies: Again, positive contribution Orders received with significant call-offs from Hinkley Point C, mainly generating revenues from 2021 onwards Development of revenue and profitability Orders received 2019 2020 FY • Q4: +59% (+59% org.), €110 million orders Q4 Q1 Q2 Q3 Q4 2019 2020 called f
Slide 33: Net profit and ROCE positively impacted by PPN Apleona
Net profit and ROCE positively impacted by PPN Apleona Reported free cash flow positive, virtually all deferred taxes and social security contributions paid Net profit 1) (€ million) Free cash flow 1) (€ million) ROCE (%) 203 211 43.2% 190 32 24 34 15 15 3.3% Q4/19 Q4/20 Q4/19 Q4/20 Q4/19 Q4/20 99 1
Slide 34: DSO clearly below prior-year level, successful working capital management
DSO clearly below prior-year level, successful Working Capital Management in Q4 Development of net liquidity Net liquidity 1) (€ million) Cash flow development year-to-date (€ million) excl. IFRS 16 12m 2020 IFRS 16 12m 2020 12m 2019 excl. IFRS 16 im pacts incl. IFRS 16 excl. IFRS 16 EBITA adj. 20 2
Slide 35: €210m booked in financial result
Mark-to-market of Apleona PPN resulted in a capital gain of €210m booked in financial result 450 • Bilfinger holds Preferred Participation Notes to Apleona, which will result in a share of approximately 49 percent of the sales proceeds after deduction of debt +210 • The PPN relates to the sale of Bi
Slide 36: Outlook 2021
Outlook 2021 Significant revenue growth and substantial improvement of EBITA adj. Actual FY 2020 Outlook FY 2021 Revenue €3,461 million Significant growth EBITA adjusted €20 million Substantial improvement Level of 2019 (2.4%), EBITA adjusted margin 0.6% despite significantly lower revenue EBITA rep
Slide 37: 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