Bilfinger Se · XETR:GBF
Bilfinger — Bilfinger Berger — Non-Deal Roadshow (October 2009)
48 slides from Bilfinger's roadshow presentation, Oct 22, 2009
Slide 1: The Multi Service Group: Dedicated to creating value
The Multi Service Group: Dedicated to creating value Roadshow Netherlands Netherlands, October 22 22, 2009 Andreas Müller, Head of Corporate Accounting, IR, M&A Bettina Schneider, Senior Manager Investor Relations
Slide 2: Agenda
Agenda ge da 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights Q2 2009 3. Outlook 2009 and beyond 4. Financials 5. Appendix October 22, 2009 Bilfinger Berger AG Company Presentation Page 1
Slide 3: The Multi Service Group – Highlights
The e Multi u t Se Service ce G Group oup – Highlights g g ts European market leader in Industrial Services for the process industry Strong player in Power Services, European market leader for high-pressure piping German market leader for integrated facility management Established partner of
Slide 4: Strategy
St ategy Strategy The Group plans to significantly reduce the scope of its construction business and in particular the dependency on individual major projects By shifting the focus towards Services the Group aims at further reducing risk and improving g margins Yet, the construction business w
Slide 5: Key strategic objectives – Dedicated to creating value
Key ey strategic st ateg c object objectives es – Dedicated ed cated to ccreating eat g value Further expansion in Services Significant reduction of volume Further development of and margin improvement in Concessions construction Organic as well as external growth Focus on profitable projects wi
Slide 6: Substantial increase in output volume
Substantial increase in output p volume H1 2009 – Stable output volume and orders Output Volume Orders Received Order Backlog 3yr-CAGR 16% 3yr-CAGR 2% 12,000 12,000 12,000 11,275 10,759 10,649 11,292 10,958 10,742 10,314 10,000 9,222 8,747 9,000 9,000 9,000 7,936 6,000 6,000 5,367 6,000 5,253 , 4 94
Slide 7: H1 2009 – Strong growth rates in earnings
Exceptional item of plus €45m pre-tax and €60m after-tax after tax in FY 2008 H1 2009 – Strong growth rates in earnings EBIT EBT Net Profit 3yr-CAGR 32% 3yr-CAGR 28% 3yr-CAGR 47% 200 320 360 200 298 284 240 229 150 134 240 228 170 173 160 100 92 119 65 120 103 80 50 53 36 52 0 0 0 2006 2007 2008 H1
Slide 8: How will we deal with the challenges of a difficult economic environment?
How o will we e dea deal with t tthe e cchallenges a e ges oof a d difficult cu t economic and financial environment? Balanced portfolio: Our business portfolio is well-balanced segment and region wise Cost flexibility: The more cyclical segments also have a more flexible cost structure Visibi
Slide 9: Increasing focus on Services
Increasing c eas g focus ocus o on Se Services ces Building g and Civil Services Concessions Industrial Transport Commercial Industrial Services Public Private infrastructure Industrial Power Services Partnerships Public-sector Facility Services 2009e: 06/2009: International Internat
Slide 10: The acquisition of MCE
The e acqu acquisition sto o of MCE C As p part of its communicated strategy, gy, Bilfinger g Berger g has agreed g on 6 October 2009 to acquire q 100% of MCE, an Austrian provider of Industrial and Power Services, for a purchase price of €350m in cash from DBAG as well as funds managed by them
Slide 11: Acquisition rationale
Acquisition cqu s t o rationale at o a e Further milestone in the Group’s p strategy gy to ggrow its Services business and to further reduce its dependence on its more volatile and cyclical construction business Through the acquisition of MCE, Bilfinger Berger expects to substantially strengthen
Slide 12: Overview of MCE
Overview of MCE Key highlights Key customers Headquartered in Linz, Austria Alstom Deutschland AG 64 locations in 8 European countries BASF SE Leading life-cycle service provider to process based industries, covering the full value chain Bayer AG Balanced business mix across projects a
Slide 13: Well balanced regional portfolio
Well e babalanced a ced regional eg o a po portfolio to o Australia Germany 27% 31% 2009e: €10.1bn Asia 6% Africa 5% America Rest of Europe 5% 26% October 22, 2009 Bilfinger Berger AG Company Presentation Page 12
Slide 14: A variable cost structure leads to flexibility
A variable a ab e cost st structure uctu e leads eads to flexibility e b ty Major j cost elements C li lit Cyclicality C t fl Cost flexibility ibilit ordered by importance Building and Industrial Medium to High Medium to High Sub-contractors Personnel Civil Medium Medium Personnel Sub-contractors Ma
Slide 15: Good visibility in Services: Industrial Services
Good visibility s b ty in Se Services: ces Industrial Services focused on maintenance and modernization Industrial Services Customer structure Retention rate Contract structure diversified Processing Industry: 90% Maintenance Oil and Gas 35% > 90% 10% Service projects Chemical, Petrochemical, Pharma
Slide 16: Good visibility in Services: Power Services
Good visibility s b ty in Se Services: ces Power Services with high order backlog Power Services Customer structure Retention rate Contract structure fairly concentrated 50% Maintenance > 90% Utilities 85% 50% Service projects Industry 15% Offered services Output volume per region Life-cycle service
Slide 17: Good visibility in Services: Facility Services
Good visibility s b ty in Se Services: ces Facility Services mainly based on multi-year framework contracts Facility Services Customer structure Retention rate Contract structure diversified 90% Maintenance Banking and Insurance 30% > 90% 10% Service projects Industrials 30% Health Care 5% Others 35
Slide 18: Solid financial situation and capital structure
So d financial Solid a c a situation s tuat o and a d capital cap ta structure st uctu e No short-term refinancing needs June 30 June 30 Dec 31 in € million 2008 2009 2008 Cash & marketable securities 556 429 720 Financial liabilities (excluding non-recourse) -127 -473 -328 Pension provisions -142 -
Slide 19: Rights issue will preserve financial flexibility
Rights g ts issue ssue will p preserve ese e financial a c a flexibility e b ty Subscription ratio: 1 for 4 4, ii.e. e 88,828,025 828 025 new shares Subscription price: € 30.60 per share Gross proceeds: € 270 million Settlement of shares: October 22 to 23 Total number of shares: 46,024,127
Slide 20: Agenda
Agenda ge da 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights Q2 2009 3. Outlook 2009 and beyond 4. Financials 5. Appendix October 22, 2009 Bilfinger Berger AG Company Presentation Page 19
Slide 21: Civil: Stimulus programs ensure demand
Civil: St C Stimulus u us p programs og a s e ensure su e de demand a d Markets and highlights Germany Output volume and orders received were – 18% adjusted for the sale of Razel – at the prior Australia year level 41% 2009e: Good demand together with strong order €3.3bn Rest of Europe backlog a
Slide 22: Latest development: Legal dispute in Qatar
Latest atest de development: e op e t Legal ega ddispute spute in Qata Qatar Bilfinger Berger expects termination of the contract for a road construction project in Qatar Despite interventions at the highest political level, the client is not willing to settle outstanding debts running into the
Slide 23: Building and Industrial: Weak demand in commercial construction
Building u d ga and d Industrial: dust a Weak ea demand de a d in commercial co e c a co construction st uct o Markets and highlights Output O t t volume l and d orders d received i d iincreased d due to Australian business Germany Australia 35% However, book-to-bill below one 50% 2009e: Publi
Slide 24: Services: Positive development continues
Services: Se ces Positive os t e de development e op e t co continues t ues Markets and highlights Output volume in Australia Asia 8% Industrial Services: € 1,318 million 2% Africa Power Services: € 493 million 3% Germany Facility Services: € 668 million 42% America 2009e: Organic development: 9
Slide 25: Concessions: Value of portfolio rises
Concessions: Co cess o s Value a ue o of po portfolio t o o rises ses Markets and highlights Australia Germany 10% 22% Golden Ears Crossing now in operation Burg Prison completed and handed over 06/2009: Canada €334 €334m UK Five more projects will go into operation in the 33% 18% second half
Slide 26: Agenda
Agenda ge da 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights Q2 2009 3. Outlook 2009 and beyond 4. Financials 5. Appendix October 22, 2009 Bilfinger Berger AG Company Presentation Page 25
Slide 27: Outlook
Out oo Outlook Financial Year 2009: Output volume in the range of €10 billion The Company had previously expected an EBIT for the full-year 2009 in the amount of €250 million. million The €80 million charge on earnings due to the legal dispute in Qatar which can be partially offset by improvem
Slide 28: Agenda
Agenda ge da 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights Q2 2009 3. Outlook 2009 and beyond 4. Financials 5. Appendix October 22, 2009 Bilfinger Berger AG Company Presentation Page 27
Slide 29: Volume and contract overview 2008
Volume ou ea and d co contract t act o overview e e 2008 008 by business segment Output volume Orders received Order backlog in € million 2007 2008 Change 2007 2008 Change 2007 2008 Change Civil 3,647 4,161 14% 4,528 3,541 -22% 5,507 4,482 -19% Building and Industrial 1,965 2,020 3% 2,596 1,915 -26%
Slide 30: Volume and contract overview 6m 2009
Volume ou ea and d co contract t act o overview e e 6 6m 2009 009 by business segment Output volume Orders received Order backlog in € million 6m 2008 6m 2009 Change 6m 2008 6m 2009 Change 06/2008 06/2009 Change Civil 1,871 1,587 -15% 1,802 1,533 -15% 5,287 4,268 -19% Building and Industrial 986 1,0
Slide 31: Strong increase in earnings
Strong increase in earnings Underlying tax rate of 34% in € million 6m 2008 6m 2009 FY 2008 EBIT 53 119 298 Net interest result -1 -16 -15 EBT 52 103 283 Income taxes -14 -37 -79 Minority interest -2 -1 -4 Net profit 36 65 200 October 22, 2009 Bilfinger Berger AG Company Presentation Page 30
Slide 32: Lower yields from cash and higher recourse debt led to decrease in interest result
Lower o e yyields e ds from o cas cash aand d higher g e volume ou e of recourse debt led to decrease in interest result in € million 6m 2008 6m 2009 FY 2008 Interest income 16 9 35 Interest expense -6 -12 -22 Current interest result 10 -3 13 Net interest from pensions -3 -6 -10 Interest expense for
Slide 33: Balance sheet as of June 30, 2009
Balance a a ce ssheet eet as o of Ju June e 30, 2009 009 Assets June 30, 2009 June 30, 2009 Equity and liabilities In € million In € million 7,077 +304 +304 7,077 Cash and marketable securities 429 -291 +116 1,523 Other current liabilities2) Other current assets 1,234 +218 -116 439 Liabilities from
Slide 34: Solid financial situation and capital structure
Solid So d financial a c a situation s tuat o and a d capital cap ta structure st uctu e Dec 31 Mar 31 Jun 30 in € million 2008 2009 2009 Cash & marketable securities 720 383 429 Financial liabilities (excluding non-recourse) -328 -336 -473 Pension provisions -219 -222 -226 Net cash (+) / net debt (
Slide 35: Recourse debt structure as of June 30, 2009
Recourse ecou se debt structure st uctu e as o of Ju June e 30, 2009: 009 No short-term refinancing needs €250m promissory note loan with approx approx. 6% interest rate p p.a. a Î Committed through 2011 (€84m) and 2013 (€166m) €68m financial leases Î Mainly construction equipment €130m drawn
Slide 36: Strong increase in working capital after very favorable development in 2008
Strong increase in working capital after very y favorable development p in 2008 in € million 6m 2008 6m 2009 FY 2008 Cash earnings 71 132 322 Change in working capital -44 -295 161 Gains on disposals of non-current assets -17 -5 -126 Cash flow from operating activities 10 -168 357 Net capital expend
Slide 37: ROCE significantly surpassed WACC
ROCE OC significantly s g ca t y su surpassed passed WACC CC High value added in 2008 Capital employed Return ROCE WACC Value added in € million in € million in % in % in € million 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 Civil 405 427 75 33 18.6 7.6 13.0 13.0 23 -23 Building and Industrial
Slide 38: Five-year overview
Five-year e yea ooverview e e in € million 2004 2005 2006 2007 2008 Output volume 6.111 7.061 7.936 9.222 10.742 Orders received 6.139 7.545 10.000 11.275 10.314 Order backlog 6.339 7.001 8.747 10.759 10.649 EBIT 81 110 170 229 298 EBT 91 115 173 228 283 Net profit 51 66 92 134 200 Cash flow Cas o f
Slide 39: Agenda
Agenda ge da 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights Q2 2009 3. Outlook 2009 and beyond 4. Financials 5. Appendix October 22, 2009 Bilfinger Berger AG Company Presentation Page 38
Slide 40: Concessions portfolio as of 06/30/2009: Transport infrastructure
Co cess o s po Concessions portfolio t o o as o of 06/30/ 06/30/2009 009 Transport infrastructure Investment Equity Method of con- Percentage held Status Concession period volume committed solidation 1) € million % € million Transport Infrastructure - Herrentunnel, Lübeck, Germany 176 50 - 2) E oper
Slide 41: Concessions portfolio as of 06/30/2009: Social infrastructure
Co cess o s po Concessions portfolio t o o as o of 06/30/ 06/30/2009 009 Social infrastructure Investment Equity Method of con- Percentage held Status Concession period volume committed solidation 1) € million % € million Social Infrastructure - Liverpool & Sefton Clinics, Great Britain 20 24 1 E op
Slide 42: Majority of projects is still under construction or in ramp-up
Majority ajo ty oof p projects ojects is s st still u under de co construction st uct o oor in ramp-up a p up Maturity of project portfolio as of June 30, 2009 Construction Ramp-up p p Yield Maturityy Present value Accumulated cash flows (nominal) 12 projects 3 project 10 projects Time A1, GER Burg
Slide 43: Directors' valuation of Concessions portfolio
Directors’ ecto s valuation a uat o oof Co Concessions cess o s po portfolio to o General Specific discount rates The DCF method of valuation is generally used Weighted risk-free basic interest rate is derived from country specific long-term Only projects where “financial close” has treasuryy
Slide 44: Portfolio value further increased
Portfolio o t o o value a ue further u t e increased c eased Additional upside potential if lower discount rate is applied Æ End of June 2009: Increase of NPV to € 177 million at a discount rate of 10.2% which compares t a book to b k value l off € 118 million illi 400 308 300 256 213 200 177 147 12
Slide 45: Share buyback and shareholder structure
Share buyback y and shareholder structure Share buyback Shareholder structure as of 06/30/2009 Duration of program: 100% free float February 19 to April 29, 2008 High proportion of institutional investors Volume: V l €100 million illi Very international shareholder base 1,884,000 shares 5.
Slide 46: Financial calendar and share facts
Financial calendar and share facts Nov. 10, 2009 Interim Report Q3 2009 52 week high / low: € 50.10 / € 21.57 (as at Oct. 19, 2009) Nov. 26, 2009 Capital Markets Day Closing price Oct. 19, 2009 € 49.57 Market cap: 1) € 2.3 bn (as at Oct. 19, 2009) “Industrial Services“ Shares outstanding: 1) 46,
Slide 47: Other investor information
Other Ot e investor esto information o at o in € per share 2004 2005 2006 2007 2008 For further information please contact: Earnings per share 1.39 1.80 2.48 3.60 5.61 Andreas Müller Bettina Schneider Corporate C t Accounting A ti I Investor t Relations R l ti Dividend 1.00 1.00 1.25 1.80 2.00 Inves
Slide 48: Disclaimer
Disclaimer sc a e 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 g statements about our beliefs and exp