Bilfinger Se · XETR:GBF
Bilfinger — Non-Deal Roadshow (June 2018)
34 slides from Bilfinger's roadshow presentation, June 2018
Slide 1: Bilfinger SE Company Presentation
Bilfinger SE Bilfinger SE Company Presentation June 2018
Slide 2: Overview
Overview
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 € 4.0bn revenue and reducing maintenance costs Clear 2-4-6 strategy with two divisions, four regions and six industries thereof recurring business >6
Slide 4: Back to Profitable Growth: Service Lines, Regions, Industries
Back to Profitable Growth 2 Service Lines, 4 Regions, 6 Industries Our ambition We engineer and deliver process plant performance 2 Service Lines 4 Regions 6 Industries • E&T – Engineering & • Continental Europe • Chemicals & • Pharma & Where to play Technologies • Northwest Europe Petrochem Biophar
Slide 5: Service Portfolio
Service Portfolio Strong offering for capex and opex driven services E&T – Engineering & Technologies OPEX Packaged Units Turnarounds Efficiency Modifications Maintenance Expansions Operations Plant Expansions Maintenance Contracts Emissions CAPEX MMO – Maintenance, De-Sulfurizations Modifications &
Slide 6: Go-To-Market organization
Go-To-Market organization Market focus, customer centric E&T – Engineering & MMO – Maintenance, Technologies Modifications & Operations 6 industries Planning Oil & Gas Continental Europe International Regional Chemicals & Petrochem Execution Northwest Europe Energy & Utilities Pharma & Biopharma Tec
Slide 7: Organizational setup supports strategy implementation and 2020 ambition
Organizational setup supports strategy implementation and 2020 ambition E&T MMO In every region: • Concentrated know-how • Customer proximity • Centralized project governance • Management of capacity utilization • Leverage high-value resources • More collaboration and cross selling • Enables fast ro
Slide 8: Growth potential through digitalization
Growth potential through digitalization
Slide 9: Digitalization in the process industry
Digitalization in the process industry Initial situation Potentials through digitalization • Limited productivity improvements, potentials exhausted • Asset performance • Plant complexity is increasing • Efficiency enhancement • Increasing M&A activities among our customers • Customers demand greate
Slide 10: BCAP – Bilfinger Connected Asset Performance
BCAP – Bilfinger Connected Asset Performance New digital approach to enhance process industry performance Customer benefit Competitive advantages Bilfinger • Detailed knowledge of the needs and processes of industrial customers 7-15%: Enhanced effectiveness of the overall plant • Expertise derived f
Slide 11: Growth opportunities digitalization
Growth opportunities digitalization Our service range for the process industry Phase 1 Phase 2 Phase 3 Phase 4 Visualization Consulting Networking Optimization and analysis Consulting Engineering Digital services Software licensing • Actual analysis • Implementation • Data collection in the IoT • Da
Slide 12: Improving our financial performance
Improving our financial performance
Slide 13: Ambitions will be achieved in three stages
Ambitions will be achieved in three stages Value Build out Build up Stabilization Time What does it mean in numbers? How will we execute? How will we measure and report progress? Bilfinger SE | Company Presentation | May 2018 page 13
Slide 14: Margin ambition supported by profit-pool analysis
Margin ambition is supported by an extensive profit-pool analysis Adjusted EBITA margin Profit pool according to FY 2016 Bilfinger profile1 (Mix FY 2020) • E&T with a defined path to improve profitability 5 to 9% E&T E&T • Entering blended margin range towards the end of the planning period EBITA •
Slide 15: We will address all P&L line-items
We will address all P&L line-items GROSS MARGIN • LOA1 process • Project management Impact on gross margin: ~200bps AMBITION2 ADDRESSING BOTH LINE ITEMS EBITA margin • Process and IT harmonization increase of • Procurement ~500bps by 2020 Impact on SG&A RATIO SG&A ratio • Lean headquarters ~300bps •
Slide 16: Quarterly Statement Q1 and Guidance FY 2018
Quarterly Statement Q1 and Guidance FY 2018
Slide 17: Q1 2018: Development as planned in an increasingly positive environment
Q1 2018 Development as planned in an increasingly positive environment Orders received with growth in the fourth consecutive quarter Book-to-bill at 1.2 Revenue once again with organic increase EBITA adjusted above prior-year Net profit improved Operating cash flow below very good prior-year quarter
Slide 18: Current market situation E&T
Current market situation E&T Oil and gas: • Continued cautious investment sentiment in European project business in Oil, some activities in gas supply and gas pipelines • Increase in activity in US shale oil and gas (mid-stream) in various fields • Signs of recovery in Middle East, projects moving f
Slide 19: Current market situation MMO
Current market situation MMO Oil and gas: • Demand for maintenance services starts to improve, (smaller) projects now beginning to advance from idea to approval • Market remains competitive Chemicals and petrochemicals: • Furthermore stable demand in Europe in maintenance business and growing willin
Slide 20: Continuing positive momentum in orders received
Continuing positive momentum in orders received: fourth consecutive quarter with growth, book-to-bill at 1.2 Development of orders received +19%/ +21% • Orders received: 1,054 1,085 1,101 19% above prior-year 928 988 (org.: +21%), 711 825 819 774 Orders 691 (70%) Double-digit increase in both (72%)
Slide 21: Revenue with organic increase, EBITA adj. with significant improvement
Revenue with a year-on-year organic increase for the third time in a row, EBITA adj. with significant improvement Development of revenue and profitability • Revenue: -3%/ +1% Q1 typically with lowest revenue 1,001 1,001 1,082 in the course of the year 961 928 In comparison to prior-year: Revenue 3.7
Slide 22: Outlook 2018 confirmed
Outlook 2018 confirmed: Significant improvement of adjusted EBITA expected in € million FY 2017 expected FY 2018 Organic growth in the mid single-digit percentage Orders received 4.055 1) range Revenue 4.044 Organically stable to slightly growing Significant increase to mid-to-higher double-digit- A
Slide 23: Targets 2020 and Wrap-up
Targets 2020 and Wrap-up
Slide 24: Dividend of €1.00 for FY 2017
Dividend of €1.00 for FY 2017 Share buyback program advances as planned • Refinancing of syndicated cash-credit line (RCF) in June 2017 with volume: €300m; duration: 5 years Re- • Agreements on guarantee facilities in bilateral tranches with a total volume of €860m achieved financing • Conditions sl
Slide 25: Bilfinger 2020 – Company passes three phases
Bilfinger 2020 – Company passes three phases Strong progress in stabilization phase Value Stabilization Build up Build out • Strategy defined • Top line growth resumed • Process and System • Organization announced • First successes in new growth areas harmonization fully rolled out • Execution
Slide 26: Bilfinger 2020 Financial ambition
Bilfinger 2020 Financial ambition Organic Growth Profit Cash Return • Positive adj. FCF from • EBITA adjusted ~5% Post-tax 2018 onwards • Gross margin ROCE2 reported: >5% CAGR • Over the cycle, from 2018 improvement by ~200bps 8 to 10% based on revenue FY 2017 onwards: Cash Conversion • SG&A ratio r
Slide 27: The Bilfinger Investment Case
The Bilfinger Investment Case: Turnaround case based on favorable business model Structural demand for industrial Favorable business Financial soundness services characteristics • BB+ / stable outlook • >60% of output in recurring • 38% equity ratio • Increasing # of Industrial plants • Increasing t
Slide 28: Appendix
Appendix
Slide 29: Gross margin at prior-year level; SG&A expenses
Gross margin at prior-year level APPENDIX SG&A expenses below very good prior quarter, but positive trend visible Adjusted gross profit (€ million) Adjusted selling and administrative expenses (€ million) 113 (10.4%) 81 1 78 8 10 7 (8.5%) (8.4%) 1 0 -86 -95 -107 112 (-7.9%) (-10.2%) (-11.1%) 81 (10.
Slide 30: Operating cash flow and net profit
Operating cash flow negative caused by seasonality and APPENDIX below very good prior-year quarter, net profit significantly improved due to lower burden from special items Adjusted operating cash flow1 (€ million) Adjusted Net profit (€ million) net profit (€ million) 1 Adjust- ments -22 28 15 Cont
Slide 31: E&T with positive momentum in orders received
APPENDIX E&T with positive momentum in orders received Development of revenue and profitability • Orders received: -11%/ -7% Strong quarter with +16% (org.: +18%) 3.6% 5.0% in comparison to weak prior-year, 296 281 308 book-to-bill at 1.1 with significant Revenue 273 265 contracts in all focus indus
Slide 32: MMO orders received and revenue with significant organic growth
APPENDIX MMO orders received and revenue with significant organic growth Development of revenue and profitability • Orders received: +6%/ +9% Strong development with +19% 657 664 716 592 625 (org. +22%), book-to-bill at 1.2 Revenue Esp. positive development in (€ million) 5.2% Continental Europe sup
Slide 33: OOP: Dilutive disposals nearly completed
OOP1): APPENDIX Dilutive: disposals nearly completed Accretive: sales process kicked off for two units Revenue OOP (€ million) Progress M&A track / Dilutive: 78 • 13 units as of December 31, 2016 • 11 have already been sold; two more with signing respectively termination Q1 2018: €2m positive P&L- a
Slide 34: 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