Bilfinger Se · XETR:GBF
Bilfinger — Investor Day (June 2024)
57 slides from Bilfinger's investor day presentation, Jun 12, 2024
Slide 1: Into Sustainable Profitable Growth
INTO SUSTAINABLE PROFITABLE GROWTH Thomas Schulz | Group CEO Matti Jäkel | Group CFO June 12, 2024 Capital Markets Day 2024 NO. 1 FOR OUR CUSTOMERS IN ENHANCING EFFICIENCY & SUSTAINABILITY
Slide 2: Strategy: No. 1 for our customers in enhancing efficiency & sustainability
Strategy No. 1 for our customers in enhancing efficiency & sustainability Bilfinger Future Positioning Years … 2027 2025/2027 4-5% CAGR 2025 6-7% >80% FY 2023 CMD 2024 ▪ Strategy +7% ▪ Cash 2023 ▪ Stork 4.3% 78% Bilfinger CMD 2023 Quarters Q4 2023 Q2 2024 Q4 2024 … Efficiency Program ✓ Operational E
Slide 3: Agenda Capital Markets Day 2024
Agenda Capital Markets Day 2024 Morning Sessions Afternoon Sessions Driving Market Expansion Into Sustainable Profitable Growth Jürgen Liedl, President E&M Europe Thomas Schulz, Group Chief Executive Officer Matti Jäkel, Group Chief Financial Officer Transformation into Core Service Business Christi
Slide 4: Bilfinger Company Profile
Bilfinger Company Profile Consultancy Engineering New Builds Maintenance & Turnarounds & Modifications Digitalization 83 % 17 % ~€5 bn revenue >30,000 employees Engineering & Maintenance Technologies >90% ~65% customer frame- and retention rate service contracts Energy Transition | Life Science | Nu
Slide 5: Market trends provide tailwind for Bilfinger business model
Trends and drivers Market trends provide tailwind for Bilfinger business model Outsourcing Volatility Efficiency Overregulation Bilfinger's business Decomplexing Sustainability model benefits Competence transfer Labor shortage from both growing Climate change Energy costs as well as declining Digit
Slide 6: Our industries
Our industries Stable to positive market across all regions and industries, increased demand for outsourcing due to volatile environment Chemicals & Pharma & Oil & Adjacent Energy Petrochemicals Biopharma Gas Industries Addressable markets [USD bn] 62 34 >50 21 22 Bilfinger © Audrey – stock.adobe.co
Slide 7: Attractive growth: selective M&A on top of market and self-propelled growth
Attractive growth Selective M&A on top of market and self-propelled growth +7% M&A ▪ Funded by sound balance sheet revenue growth 2023 ▪ Total Shareholder return and EPS accretion CAGR in 2-3% ▪ Attractive top-line and bottom- addressable line contribution market 4-5% ▪ Driver of full line offering
Slide 8: Strategic levers
Strategic levers Efficiency Program completed, focus on two strategic levers going forward Capital Markets Day 2024 Capital Markets Day 2023 1. Efficiency Program ✓ Operational Excellence Operational 2. Excellence Positioning 3. Positioning 8 Bilfinger | Capital Markets Day 2024 | June 12, 2024
Slide 9: Operational Excellence
Operational Excellence Strategic lever with internal focus: Continuously improving performance Progress KPI Competence Growth ▪ Build up training centers Deep Profitability ▪ Standardized and certified trainings Dive Development Cash ▪ Value based selling ▪ High maturity level across regions and cat
Slide 10: Competence development Deep Dive
Competence development Deep Dive A key investment to increase the attractiveness to both employees and customers More upskilling Higher attraction > 0.5% of Revenue Reduced labor shortage p.a. Investment in training Improved safety & education Increased digitalization Higher customer and More standa
Slide 11: Positioning
Positioning Strategic lever with external focus: solution partner of choice for our customers Progress KPI ▪ Full line offering in existing geographies – core expansion Growth ▪ Expanding into other geographies – adjacent expansion Market Expansion Profitability ▪ Exit non-core offerings and marke
Slide 12: Digitalization Deep Dive
Digitalization Deep Dive Strengthens market competitiveness and enhances efficiency for customers E& pe M Digital Twin ro Int Eu Artificial Intelligence ern E&M Predictive Maintenance >40% ational ~5% Today Drones & Robotics by 2025/2027 Process Digitalization ... Tech n o lo gi e s %12 reflects sha
Slide 13: Digitalization: Examples
Digitalization: Examples Digitalization in Scaffolding Predictive Maintenance Drones for Insulation Inspection 3D modelling and augmented reality for Improved asset management via data analytics Fast and efficient inspection increases energy enhanced efficiency. platform. efficiency. Up to Up to 20%
Slide 14: Sustainability roadmap Deep Dive
Sustainability roadmap Deep Dive Sustainability is a core element of our strategy Road to Net Zero Revenue Sustainable Services [€ m] 225 2023 A 4,486 Commitment to Science Based Targets initiative ✓ 4,312 Degree of environmental impact 478 aligned with a 1.5°C pathway B 445 268 261 2025 Full report
Slide 15: Into sustainable profitable growth
Into sustainable profitable growth Implementation of strategy translates to Total Shareholder Return Total Shareholder Return Achievements Efficiency Program ✓ 119% Strategic Functional Organization ✓ De-Risking ✓ Acquisition of Stork ✓ 53% Return to MDAX index ✓ 33% ✓ Market Capital S&P Rating: Pos
Slide 16: Recap Capital Markets Day 2023: mid-term financial targets confirmed
Recap Capital Markets Day 2023 Mid-term financial targets confirmed 2024 2025/2027 Organic Growth 4-5% CAGR Increasing EBITA Margin ≥5% 6-7% Improving Cash Conversion (FCF/EBITA) >70% >80% 16 Bilfinger | Capital Markets Day 2024 | June 12, 2024
Slide 17: Group Outlook FY 2024
Group Outlook FY 2024 Now including successful Stork acquisition [€ m, %] Outlook Outlook FY 2023 FY 2024 FY 2024 (excl. Stork | 02/2024) (incl. Stork | 06/2024) Revenue 4,486 4,500 to 4,800 4,800 to 5,200 EBITA Margin 4.3% 4.9% to 5.2% 4.8% to 5.2% Free Cash Flow 122 100 to 140 1) 100 to 140 1) 1)
Slide 18: Segment Outlook FY 2024
Segment Outlook FY 2024 Now including successful Stork acquisition [€ m, %] Outlook Outlook FY 2024 FY 2024 (excl. Stork | 02/2024) (incl. Stork | 06/2024) Revenue 2,900 to 3,200 3,200 to 3,600 E&M Europe 5.9% to 6.2% 5.7% to 6.1% EBITA margin Revenue 650 to 750 650 to 750 E&M International EBITA ma
Slide 19: Margin progression and working capital improvement to drive cash generation
Margin progression and Working Capital improvement to drive cash generation EBITA [€ m] | Margin [%] Free Cash Flow [€ m] | Cash Conversion [%] 6-7% 4.3% ~5% 97% 3.2% 78% >80% >70% 191 140 136 122 2022 2023 2024 2025/2027 2022 2023 2024 2025/2027 adjusted reported reported adjusted reported Signific
Slide 20: New mid-term target on Net Trade Assets
Net Trade Assets Improved efficiency in Net Trade Assets, with a new mid-term target of < 8 % as of revenue Bilfinger Average NTA1)/Revenue [%] Peer analysis 12.0% 11.7% ~11% ~11% <8% New ~9% ~8% mid-term Ø 6% ~5% target on ~3% capital ~1% efficiency 2022 2023 2024 2025/ … Peer 1 Peer 2 Peer 3 Peer
Slide 21: Strategic levers: Cash impact
Strategic levers: Cash impact Driving capital efficiency and cash generation Progress Impact Competence ▪ Training material – cash focus Medium ▪ Impact of contractual terms – know how Development Standardization ▪ Internal processes – accelerate High ▪ Contract terms and conditions – streamline & B
Slide 22: Increase Capital Efficiency
Strategic levers drive Working Capital improvement Optimizing process from preparation of customer quotations to receipt of payments De- Automation & Competence Average NTA/ Risking Digitalization Development Revenue [%] 12% ▪ Focus on cashflow ▪ Time writing ▪ Focus on in contract terms operational
Slide 23: Capital Allocation unchanged
Capital Allocation unchanged Revenue Growth EBITA Improvements Cash Conversion Dividend: M&A 40-60% of ▪ Attractive top-line and bottom-line contribution adjusted net ▪ Total Shareholder Return Organic growth Share buyback profit and ▪ Access to skilled labor continuous ▪ Driver of full line offerin
Slide 24: The Perfect Fit: Bilfinger & Stork
THE PERFECT FIT: BILFINGER & STORK Jürgen Liedl | President E&M Europe June 12, 2024 Capital Markets Day 2024 NO. 1 FOR OUR CUSTOMERS IN ENHANCING EFFICIENCY & SUSTAINABILITY
Slide 25: Successful execution of our M&A Strategy
Successful execution of our M&A Strategy M&A Strategy Stork Timeline Complementary service Complementary portfolio in portfolio in our core markets Belgium, Netherlands and Germany ✓ ▪ Signing of transaction on Total Shareholder Return EPS accretive from closing on and Enterprise value of € 76 m inc
Slide 26: The perfect fit
The perfect fit Stork is a complementary addition to the services offered in Europe E&M Europe Stork Europe Combined Eastern DACH Europe DACH Eastern DACH Europe 20,400 2,700 >23,000 Headcount Headcount Headcount UK Belgium, UK Netherlands Nordic Belgium, Nordic Belgium, Netherlands Netherlands Belg
Slide 27: Financial Outlook: E&M Europe
Financial Outlook Outlook 2024 for E&M Europe updated, EBITA margin improvement through strategic levers Updated outlook E&M Europe Mid-term EBITA margin of acquired business Illustrative >7% Outlook Outlook [€ m, %] FY 2024 FY 2024 FY 2023 (excl. Stork) (incl. Stork) 2,900 to 3,200 to Revenue 3,033
Slide 28: Integration completed in March 2025
Integration completed in March 2025 Stork part of Bilfinger from Day 1 2023 2024 2025 ✓ Day to Day Business ▪ Day 1 successfully completed Preparation Organization ▪ Management ✓ teams in place Joint Customer ▪ Integration ✓ Approach workstreams active Integration of IT Systems & Processes Rebrandin
Slide 29: Examples of market synergies
Examples of market synergies Reference Case Reference Case HyCC Shell Holland Hydrogen 1 Maintenance management 200 MW Hydrogen and execution on all sites in Plant powered by Netherlands offshore wind to provide Pernis Refinery with green Hydrogen © HyCC © Shell Bilfinger Stork Bilfinger Stork Asset
Slide 30: Driving Market Expansion - Engineering & Maintenance Europe
DRIVING MARKET EXPANSION - ENGINEERING & MAINTENANCE EUROPE - Jürgen Liedl | President E&M Europe June 12, 2024 Capital Markets Day 2024 NO. 1 FOR OUR CUSTOMERS IN ENHANCING EFFICIENCY & SUSTAINABILITY
Slide 31: E&M Europe today
E&M Europe today Consultancy Engineering New Builds Maintenance & Turnarounds & Modifications Revenue split [FY 2023, %] Digitalization Revenue [€ m] Revenue split [FY 2023, %] ~23,400 2,836 3,033 3,600 3,200 Projects 20% Frame and service contracts employees in Engineering & Maintenance Europe 2022
Slide 32: E&M Europe: Strategic levers
E&M Europe: Strategic levers Progress shows potential for further improvement Progress KPI Standardization Growth ▪ Standardized product execution and go-to market Profitability & Bundling ▪ From individual services to solutions Cash Profitability ▪ Limit liabilities in new contracts De-Risking Cash
Slide 33: E&M Europe: Positioning
E&M Europe: Positioning To offer all Bilfinger products in existing markets and to serve all prospective customers Illustrative Design Today 2025/2027 Region Region Region Region Region Region Region Region Region Region 1 2 3 4 5 1 2 3 4 5 ▪ Standardized Products established ▪ White spots identifie
Slide 34: E&M Europe: Examples for Market Expansion
E&M Europe: Examples for Market Expansion Bilfinger Net Zero Approach Bilfinger Advanced Inspection Bilfinger Rotalysis Full lifetime partner of Food & Beverage Phased Array Ultrasonic Testing, up to 60% Software to optimize operation of pumps, up Industry to become Net Zero efficiency improvement c
Slide 35: E&M Europe: Mid-term targets
E&M Europe: Mid-term targets Mid-term CAGR target Mid-term profitability target +9% 5.1% revenue EBITA growth margin 2023 2023 ~4% 7-8% 0.5-1% 0.5-1% ~2% 4.9% ~1% ~2% Market Self-propelled Target EBITA adj. Efficiency Operational Positioning Target EBITA growth growth growth margin 2022 Program Exce
Slide 36: Transformation into Core Service Business - E&M International
TRANSFORMATION INTO CORE SERVICE BUSINESS - ENGINEERING & MAINTENANCE INTERNATIONAL - Christian Rugland | President E&M International June 12, 2024 Capital Markets Day 2024 NO. 1 FOR OUR CUSTOMERS IN ENHANCING EFFICIENCY & SUSTAINABILITY
Slide 37: E&M International today
E&M International today Consultancy Engineering New Builds Maintenance & Turnarounds & Modifications Revenue split [FY 2023, %] Digitalization Revenue [€ m] Revenue split [FY 2023, %] ~5,400 Local Presence Active 798 Frame and 682 750 650 service contracts Projects employees in 30% Engineering & Mai
Slide 38: E&M International: Strategic levers
E&M International: Strategic levers Progress shows potential for further improvement Progress KPI Standardization Growth ▪ Execution with Product Centers Profitability & Bundling ▪ Cross selling Cash ▪ End large construction projects Profitability De-Risking ▪ Projects with maintenance program and s
Slide 39: E&M International: Positioning
E&M International: Positioning To offer all Bilfinger products in existing markets and to serve all prospective customers Illustrative Design Today 2025/2027 Region 1 Region 2 Region 1 Region 2 ▪ Standardized Products established ▪ White spots identified ▪ Core expansion ongoing ▪ North America: fro
Slide 40: E&M International: Examples for Market Expansion
E&M International: Examples for Market Expansion Drive Energy Transition Supporting Decarbonization Solution Partner via Infrastructure Services via Engineering via comprehensive Maintenance Support customers to deploy infrastructure Decarbonization for national oil companies Support strategic custo
Slide 41: E&M International: Mid-term targets
E&M International: Mid-term targets Mid-term CAGR target Mid-term profitability target -12% 0.4% 798 682 revenue EBITA growth ~6% margin 5-6% 2022 2023 2023 2023 ~3% ~4% ~3% 1-2% -0.7% ~1% Market Self-propelled Target EBITA adj. Efficiency Operational Positioning Target EBITA growth growth growth ma
Slide 42: Leveraging Trends for Growth - Technologies
LEVERAGING TRENDS FOR GROWTH - TECHNOLOGIES - Thorsten Hoppe | President Technologies June 12, 2024 Capital Markets Day 2024 NO. 1 FOR OUR CUSTOMERS IN ENHANCING EFFICIENCY & SUSTAINABILITY
Slide 43: Technologies today
Technologies today Consultancy Engineering New Builds Maintenance & Turnarounds & Modifications Revenue split [FY 2023, %] Digitalization Revenue [€ m] Revenue split [FY 2023, %] ~2,000 employees in 538 684 850 750 5% Frame and service contracts Technologies Projects 2022 2023 2024 95% 3 EBITA [€ m,
Slide 44: Technologies: Strategic levers
Technologies: Strategic levers Progress shows potential for further improvement Progress KPI Standardization Growth ▪ Engineering Profitability ▪ Project selection and execution & Bundling Cash ▪ Solution partner & system integrator ▪ Minimize one-time solutions Profitability De-Risking ▪ Repetitive
Slide 45: Technologies De-Risking: From Projects to Products
Technologies De-Risking: From Projects to Products Capital Markets Day 2023 Focus on Products 2025/2027 Frame & service contracts ▪ Repetitive business 5% ▪ Piping Products ▪ Skids ▪ Process units ▪ … ~50% ~50% ▪ Standardized offering in Product Center Projects 95% ▪ Training & Education Projects 45
Slide 46: Technologies: Positioning
Technologies: Positioning Market expansion in existing Bilfinger geographies to serve all prospective customers Illustrative Design Today 2025/2027 Business Business Business Business Business Business ▪ Strengthened market Line 1 Line 2 Line 3 Line 1 Line 2 Line 3 positioning Europe ▪ Access to hig
Slide 47: Technologies: Examples for Market Expansion
Technologies: Examples for Market Expansion Repetitive Business Sustainability Partnering Internationalization in Nuclear in Energy Transition in Pharma & Biopharma Repetitive business for Nuclear new build Modularized pre-fabrication and standardized Expand into Bilfinger core Regions with existing
Slide 48: Technologies: Mid-term targets
Technologies: Mid-term targets Mid-term CAGR target Mid-term profitability target +28% ~6% 5.9% 6-7% revenue EBITA growth margin ~1% 2023 2023 ~3% ~1% 3.8% ~1% ~3% Market Self-propelled Target EBITA adj. Efficiency Operational Positioning Target EBITA growth growth growth margin 2022 Program Excelle
Slide 49: Wrap Up
WRAP UP Thomas Schulz | Group CEO Matti Jäkel | Group CFO June 12, 2024 Capital Markets Day 2024 NO. 1 FOR OUR CUSTOMERS IN ENHANCING EFFICIENCY & SUSTAINABILITY
Slide 50: Market trends provide tailwind for Bilfinger business model
Trends and drivers Market trends provide tailwind for Bilfinger business model Outsourcing Volatility Efficiency Overregulation Bilfinger's business Decomplexing Sustainability model benefits Competence transfer Labor shortage from both growing Climate change Energy costs as well as declining Digi
Slide 51: Into sustainable profitable growth
Into sustainable profitable growth Implementation of strategy translates to Total Shareholder Return Total Shareholder Return Achievements Efficiency Program ✓ 119% Strategic Functional Organization ✓ De-Risking ✓ Acquisition of Stork ✓ 53% Return to MDAX index ✓ 33% ✓ Market Capital S&P Rating: Pos
Slide 52: Attractive growth: selective M&A on top of market and self-propelled growth
Attractive growth Selective M&A on top of market and self-propelled growth +7% M&A ▪ Funded by sound balance sheet revenue growth 2023 ▪ Total Shareholder return and EPS accretion CAGR in 2-3% ▪ Attractive top-line and bottom- addressable line contribution market 4-5% ▪ Driver of full line offering
Slide 53: Recap Capital Markets Day 2023: mid-term financial targets confirmed
Recap Capital Markets Day 2023 Mid-term financial targets confirmed 2024 2025/2027 Organic Growth 4-5% CAGR Increasing EBITA Margin ≥5% 6-7% Improving Cash Conversion (FCF/EBITA) >70% >80% 53 Bilfinger | Capital Markets Day 2024 | June 12, 2024
Slide 54: Increase Capital Efficiency
Strategic levers drive Working Capital improvement De- Automation & Competence Average NTA/ Risking Digitalization Development Revenue [%] 12% <8% Consistent Cash Consistent Cash Consistent Cash Conversion Conversion Conversion Increase Capital Efficiency 54 Bilfinger | Capital Markets Day 2024 | Ju
Slide 55: Group Outlook FY 2024
Group Outlook FY 2024 [€ m, %] Outlook FY 2023 FY 2024 (incl. Stork | 06/2024) Revenue 4,486 4,800 to 5,200 EBITA Margin 4.3% 4.8% to 5.2% Free Cash Flow 122 100 to 140 1) 1) Including ~€ 40 m special items cash-out efficiency program, corresponds to Cash Conversion adjusted of ~70% 55 Bilfinger | C
Slide 56: Capital Allocation unchanged
Capital Allocation unchanged Revenue Growth EBITA Improvements Cash Conversion Dividend: M&A 40-60% of ▪ Attractive top-line and bottom-line contribution adjusted net ▪ Total Shareholder Return Organic growth Share buyback profit and ▪ Access to skilled labor continuous ▪ Driver of full line offerin
Slide 57: Strategy: No. 1 for our customers in enhancing efficiency & sustainability
Strategy No. 1 for our customers in enhancing efficiency & sustainability Bilfinger Future Positioning Years … 2027 2025/2027 4-5% CAGR 2026 6-7% 2024 >80% 2025 4.8-5.2 bn 2024 4.8-5.2% >70% Bilfinger CMD 2023 Years … 2025 2026 2027 … Operational Excellence Growth EBITA margin Cash Conversion 57 Bil