Bilfinger Se · XETR:GBF
Bilfinger — Bilfinger Berger — Investor Day (December 2010)
30 slides from Bilfinger's investor day presentation, Dec 2, 2010
Slide 1: Overview Power Services – POWERing ahead together
Overview Power Services – POWERing ahead together Capital Markets Day “Power Services” at Moorburg Power Plant December 2, 2010 Gerd Lesser, CEO of BB Power Services GmbH
Slide 2: Agenda
Agenda 1. Overview Bilfinger Berger Power Services (BBPS) 1.1 General overview of BBPS 1.2 Organization 1.3 Key figures 1.4 Business segments 2. Business trends and drivers 3. International expansion and acquisition strategy 3.1 Regional interests 3.2 Growth perspectives 3.3 Screening criteria for a
Slide 3: General overview of BBPS
1. Overview Bilfinger Berger Power Services 1.1 General overview of BBPS Bilfinger Berger Power Services GmbH offers comprehensive services for the electricity generating industries We accompany our clients throughout the entire plant lifecycle Boilers and piping systems Components for new p
Slide 4: Business Segments Bilfinger Berger 2010
1.2 Organization Business Segments Bilfinger Berger 2010 Bilfinger Berger Industrial Power Building and Construction Concessions Services Services Facility Services Bilfinger Berger Capital Markets Day December 2, 2010 Page 4
Slide 5: Organization of Bilfinger Berger Power Services
1.2 Organization Organization of Bilfinger Berger Power Services Bilfinger Berger SE Bilfinger Berger Power Services GmbH Mechanical Power and Engineering, Steam Generators Piping Technology Environmental Apparatus and Engineering Plant Engineering Output volume 2009: Output volume 2009: Output volu
Slide 6: Management Structure of Bilfinger Berger Power Services
1.2 Organization Management Structure of Bilfinger Berger Power Services Bilfinger Berger SE Bilfinger Berger Power Services GmbH Power and Steam Generators Mechanical Apparatus Steam Generators Environmental Piping Technology South Africa and Plant Engineering Engineering Babcock Borsig Service Bil
Slide 7: Strong brand names in the industry under one roof
1.2 Organization Strong brand names in the industry under one roof Bilfinger Berger Power Services Babcock Borsig Steinmüller Duro Dakovic Mannesmann Noell Boiler Boiler Anlagenbau Mechanical manufacturer manufacturer engineering Power stations since 1898 since 1855 since 1921 since 1885 Cranes sinc
Slide 8: Locations Worldwide and Priority Markets
1.2 Organization Locations Worldwide and Priority Markets Location Priority Market Bilfinger Berger Capital Markets Day December 2, 2010 Page 8
Slide 9: Key Figures: Financial year 2009
1.3 Key Figures Financial year 2009 2009 Others Asia 1% Output volume 1,017 11% Africa Orders received 1,024 13% Order backlog 1,181 Output volume Germany 2010e 51% EBIT 73 EBIT margin 7.2% Europe Employees 8,094 24% Bilfinger Berger Capital Markets Day December 2, 2010 Page 9
Slide 10: Volume development of Bilfinger Berger Power Services
1.3 Key Figures Volume development of Bilfinger Berger Power Services Orders received Output volume 1,200 1,200 1,000 1,000 800 800 600 600 400 400 200 200 0 0 2002/032003/042004/05 2006 2007 2008 2009 2010e 2002/032003/042004/05 2006 2007 2008 2009 2010e In € million Bilfinger Berger Capital Market
Slide 11: Business Segments I. Steam Generators
1.4 Business Segments I. Steam Generators The service concept of the Group includes a broad engineering range as well as individual customer service: Construction Conversion Modernization Maintenance Repairs Construction components Spare parts service Bilfinger Berger Capital Markets D
Slide 12: Business Segments II. Energy and Environmental Technology
1.4 Business Segments II. Energy and Environmental Technology Construction of new flue gas desulfurization plants (FGD plants) based on a licence of Babcock & Wilcox. Bilfinger Berger Capital Markets Day December 2, 2010 Page 12
Slide 13: Business Segments III. Piping Technology
1.4 Business Segments III. Piping Technology Specialist for piping systems and components for maximum pressure and temperature. Our customers are national and international companies of the power generation sector, the chemical and petrochemical industries as well as the steel industry. Bilfinger Be
Slide 14: Business Segments IV. Mechanical Engineering, Apparatus and Plant Engineering
1.4 Business Segments IV. Mechanical Engineering, Apparatus and Plant Engineering Components for: Gas and steam turbines Water turbines Aerospace and aeronautics Nuclear technology Machinery assembly Welded constructions Penstock Metallurgical plant machines Spare and wearing par
Slide 15: Business trends and drivers
2. Business trends and drivers The results of the World Energy Conference in Copenhagen, along with ongoing political discussions demonstrate that coal-fired power plants around the world continue to lose acceptance. Especially in Europe, the contribution of primary energy sources is changing: Sourc
Slide 16: Expected power plant new builds – excerpts from international studies
2. Business trends and drivers Expected power plant new builds – excerpts from international studies Units Type World 5,000 Coal by 2030 202 Nuclear 3,250 Gas/GuD South Africa 39 Coal by 2025 2 Nuclear 4 Gas/GuD India 67 Coal by 2020 10 Nuclear Russia 95 Coal by 2020 31 Nuclear Middle East 94,289 MW
Slide 17: Demand for New Power Plant Capacity (EU)
2. Business trends and drivers Demand for New Power Plant Capacity (EU) Source: VGB Bilfinger Berger Capital Markets Day December 2, 2010 Page 17
Slide 18: Demand for New Power Plant Capacity (EU)
2. Business trends and drivers Demand for New Power Plant Capacity (EU) According to current estimations, the electricity demand in the EU-27 will rise to roughly 3,700 billion kWh by 2020 Due to age structure of the power generation portfolio and envisaged climate protection targets of minus 21
Slide 19: Age structure of power plants in the EU
2. Business trends and drivers Age structure of power plants in the EU 27 Year of bringing into service Lignite Nuclear Coal Gas/Oil Over 65% are older than 20 years and thus in the Over 35% second half are older of their than 30 lifecycle years Installed output (MW) Source: IEA, VGB, RWE Power Bilf
Slide 20: Regional characteristics and BBPS footprint: Europe
2. Business trends and drivers Regional characteristics and BBPS footprint: Europe Europe (France, UK) Priority on nuclear power Experience from project business Experience with international major customers (RWE, E.on, Areva, EdF) Eastern Europe Environmental measures at old facilities in E
Slide 21: Regional characteristics and BBPS footprint: South Africa
2. Business trends and drivers Regional characteristics and BBPS footprint: South Africa Wind Existing Plant Age 4% electricity growth Lima Ingula 60000 Kusile Medupi Gourikwa Ankerlig 50000 2.3% Majuba electricity C.... Bassa Kendal growth Palmiet 40000 Matimba Lethabo Tutuka Capacity MW Koeberg 30
Slide 22: Regional characteristics and BBPS footprint: South Africa
2. Business trends and drivers Regional characteristics and BBPS footprint: South Africa Generating Capacity to be increased by more than 37,000 MW by 2025 to meet the 6% GDP target Currently available Energy capacity is running below operating reserve Eskom initiated capacity increase project
Slide 23: Regional characteristics and BBPS footprint: Middle East
2. Business trends and drivers Regional characteristics and BBPS footprint: Middle East Substantial oil and gas business Awarding of nuclear reactor contract to Koreans (differing safety standards) Many state companies; payment behavior and legal framework different Importance of seawater de
Slide 24: Regional characteristics and BBPS footprint: Russia and India
2. Business trends and drivers Regional characteristics and BBPS footprint: Russia and India Russia Giant market with tremendous modernization potential, ideal for existing product range of BBPS Market experience from long-term projects BBPS has already had various contacts with customers and
Slide 25: Regional characteristics and BBPS footprint: USA and South America
2. Business trends and drivers Regional characteristics and BBPS footprint: USA and South America USA Acquisition of a mid-sized services company with a broad customer network which, as a result of the BBPS product range, would gain both in terms of profile and know-how Experience from earlier a
Slide 26: Consequences for Bilfinger Berger Power Services
2. Business trends and drivers Consequences for Bilfinger Berger Power Services Maintenance business • For the next years at a constant level – no new power plants in Germany means that the old ones have to run longer • In the long-term view a decline will occur because of the shutdown of old plan
Slide 27: International expansion: Regional interests
3. International expansion and acquisition strategy 3.1 Regional interests Target markets: UK France India Russia USA South America Current locations Target markets Bilfinger Berger Capital Markets Day December 2, 2010 Page 27
Slide 28: Growth perspectives
3. International expansion and acquisition strategy 3.2 Growth perspectives Potential to expand the product portfolio through know-how transfers Western Eastern Germany South Africa MENA Others New regions Europe Europe Steam Generator X X X X X X India incl. Turbine service incl. Turbine service En
Slide 29: Screening criteria for acquisitions
3. International expansion and acquisition strategy 3.3 Screening criteria for acquisitions 1. Extension of service range along the value chain of the power station process, e.g. turbine service, piping, steam generator, companies in the area of the cold end 2. Development of new products for future
Slide 30: Thank you for your attention!
Strong arguments for efficiency increase in power plants! Thank you for your attention! Bilfinger Berger Capital Markets Day December 2, 2010