Bilfinger Se · XETR:GBF
Bilfinger — Investor Day (February 2022)
49 slides from Bilfinger's investor day presentation, Feb 10, 2022
Slide 1: We Make Sustainability Work
WE MAKE SUSTAINABILITY WORK Capital Markets Day February 10, 2022
Slide 2: Today's agenda
Today's agenda 1. Welcome 2. Preliminary figures FY 2021 3. The Bilfinger Sustainability Commitment 4. Sustainable Industrial Services 5. Strategic Summary and Targets 2024 6. Q&A session Capital Markets Day February 10, 2022
Slide 3: Preliminary figures FY 2021
Preliminary figures FY 2021
Slide 4: Rebuilding the track record: Delivered on guidance, again
Rebuilding the track record: Delivered on guidance, again Guidance met () 137 104 65 EBITA adjusted 20 [€ million] 115 93 56 57 Free Cashflow reported [€ million] 2018 2019 2020 2021 Bilfinger SE I Capital Markets Day 2022 | February 10, 2022 page 4
Slide 5: Key strategic highlights 2021
Key strategic highlights 2021 Cost reduction Significant improvement in gross margin and agility All 4 quarters with positive EBITA adjusted and reported measures Further working capital improvement become effective Process and system harmonization roll-out completed, major restructuring in
Slide 6: Key financial highlights 2021
Key financial highlights 2021 • Markets remain generally positive +9% org. • Full-year target of €4 billion achieved, book-to-bill of 1.07 Orders received • Q4 with solid orders received in all segments +11% org. • Strong recovery especially in E&M Europe and Technologies Revenue • International bus
Slide 7: Full year 2021 with strong cash development; Outlook 2022
Full year 2021 with strong cash development Outlook 2022: now based on purely reported figures • Reported free cash flow even surpass good prior-year level • DSO of 67 days a new record low Liquidity • Non-operational effects add on positive development despite restructuring cash-outs and increased
Slide 8: Markets: E&M Europe
Markets: E&M Europe Industries %1) Description Overall trend Chemicals & 40% Combined services increasing in demand Petrochem Larger investments expected going forward especially associated with renewables/carbon reduction Large Turnaround and OPEX activities restarted and distributed over the
Slide 9: Markets: E&M International
Markets: E&M International Industries %1) Description Overall trend Chemicals & 25% Trend for expansion and modernization projects in ME intact Petrochem Attractive project pipeline in NA (e.g. petrochemical companies and refineries put larger emphasis on Maintenance projects) Increasing deman
Slide 10: Markets: Technologies
Markets: Technologies Industries %1) Description Overall trend Energy & 35% Energy transition focus in all our regions, esp. Europe and NA Utilities Nuclear demand for new builds and maintenance increasing, esp. in France, UK, Finland and demand increasing for decommissioning in Germany Pharma &
Slide 11: Full-year target of €4 billion orders received achieved, book-to-bill at 1.07
Full-year target of €4 billion orders received achieved, book-to-bill at 1.07 Development of orders received Orders received 2020 2021 FY • Q4: On prior year level, strong increase Q4 Q1 Q2 Q3 Q4 2020 2021 in E&M International based on mid-sized 0%/-1% org. projects and service contracts +8%/+9% org
Slide 12: Revenue with 11% organic growth, EBITA margin reflects good operational development
Revenue with 11% organic growth, EBITA margin reflects good operational development as well as positive one-time effects Development of revenue and profitability 2020 2021 FY Revenue Q4 Q1 Q2 Q3 Q4 2020 2021 • FY: Solid development, growth of 8% (org.: +8%/+11% org. +11%) +11%/+11% org. Revenue • St
Slide 13: Gross margin substantially recovered from weak prior year level
Gross margin substantially recovered from weak prior year level Gross profit (€ million) / margin (in %) • Full-year improvement to 10.4% against weak prior year that was impacted by Covid-19 106 107 387 105 • In Q4 with 10.9% slightly below prior quarter (11.9%) (11.3%) (10.9%) (10.4%) and prior ye
Slide 14: SG&A expenses again clearly below target run-rate of €300 million
SG&A expenses again clearly below target run-rate of €300 million despite top-line growth Adjusted SG&A expenses (€ million) / ratio (in %) • Efficient SG&A setup, also based on meanwhile completed process and system 7 18 harmonization project 1 1 5 • In addition, positive Covid-19 related effects i
Slide 15: E&M Europe: Significant revenue growth at very good margin level
E&M Europe: Significant revenue growth at very good margin level Development of revenue and profitability Orders received 2020 2021 FY • FY: Increase of +4% (org: +3%) • Q4: Decrease of -8% (org.: -11%) compared Q4 Q1 Q2 Q3 Q4 2020 2021 to very strong prior year quarter, +13% / +12% org. book-to-bil
Slide 16: E&M International: Substantial increase in orders received
E&M International: Substantial increase in orders received against weak prior-year Full year revenue and EBITA improvement still slower than anticipated Development of revenue and profitability Orders received 2020 2021 FY • Q4: With +127% (org.: +117%) strong development against weak prior-year qua
Slide 17: Technologies: Decrease in orders received due to high comparable
Technologies: Decrease in orders received due to high comparable Revenues and EBITA margin on solid level Development of revenue and profitability Orders received 2020 2021 FY • Q4: -37% (-36% org.) below very strong prior Q1 Q2 Q4 2020 2021 year quarter supported by Hinkley Point C, Q4 Q3 +12%/+14%
Slide 18: Full-year reported free cash flow surpasses good prior-year level
Full-year reported free cash flow even surpass good prior-year level Cash-in from tax refunds (€29m) and real-estate disposals (€57m) contributed to this on top of strong Working Capital development Net profit 1) (€ million) Free cash flow 1) (€ million) ROCE (%) 203 113 122 43.2 66 34 13.6 41 24 15
Slide 19: Outlook 2022, on the basis of purely reported figures
Outlook 2022, on the basis of purely reported figures Evidence of the now completed phase of transformation and restructuring Actual FY 2021 Outlook FY 2022 Revenue €3,737 million Significant growth EBITA reported / margin €121 million / 3.2% Significant operational improvement Free cash flow report
Slide 20: The Bilfinger Sustainability Commitment
The Bilfinger Sustainability Commitment
Slide 21: The Bilfinger Sustainability Commitment
THE BILFINGER SUSTAINABILITY COMMITMENT People Planet Customers Governance Occupational safety: Energy & Sustainable Compliance: Zero is possible Emissions: Industrial Services: Never compromise on Become ‘Net Zero’ in Target revenue of integrity Supply Chain: GHG Scope 1 and 2 €1 bn by 2024 Broaden
Slide 22: Contribution to 10 UN Sustainable Development Goals
With this commitment, we contribute to 10 UN Sustainable Development Goals People Planet Customers Governance The well-being of all We clearly We support our Good corporate employees is our acknowledge our clients to meet governance means top priority responsibility for their energy needs for us res
Slide 23: Become 'Net Zero' in GHG Scope 1 and 2 by 2030 at the latest
Planet Become ‘Net Zero’ in GHG Scope 1 and 2 by 2030 at the latest Roadmap Reduction of CO2 emissions Reducing our Collect Group-wide data based on Greenhouse Gas Protocol CO2 footprint (GHG) categories Reporting results according to GHG Scope 1 and 2 Concept for Scope 3 in the making Contribute by
Slide 24: ~60,000 tCO2e in Scope 1 and 2
Planet ~60,000 tCO2e in Scope 1 and 2, with biggest impact from fleet and offices (heat and power-supply) [tCO2e] Scope 1 Scope 2 34,845 emissions emissions • CO2 from combustion • Electricity consumption 35,608 of natural gas, oil and in properties, vehicles other materials for and machinery heatin
Slide 25: People and Governance: safety and compliance
People and Governance Number and severity of safety incidence on a best-in-class level We never compromise on safety and compliance Safety is good business Integrity is non-negotiable Safety KPIs (based on 1m man hours) Self-optimizing compliance cycle 1 0.84 LTIF Fully integrated 0.71 0.67 Prevent
Slide 26: Customers: Sustainable Industrial Services
Customers: Sustainable Industrial Services
Slide 27: Sustainable Industrial Services: today's agenda
Sustainable Industrial Services It’s on today’s agenda Customer & market drivers Bilfinger's strategic areas Delivery process and targets Bilfinger SE I Capital Markets Day 2022 | February 10, 2022 page 27
Slide 28: Market drivers
Market drivers European policies and investors trigger fossil fuel powered industries to implement sustainable energy strategies Fossil fuel exit CO2 price increase Stricter regulations ESG financing More and more countries plan to Target CO2 reduction leads to Strict emission regulations 2025 Finan
Slide 29: Customer & market drivers: implications for industrial service providers
Customer & market drivers Implications for industrial service providers Chemicals Chemicals& & Petrochemicals Petrochemicals Oil & Gas Energy & Utilities Ecosystem will Ecosystem willsignificantly significantly change Continues to play an important Capacity of renewable energy change with impact on
Slide 30: Sustainable Industrial Services portfolio Bilfinger
Our answer to support our clients along their value chain: SUSTAINABLE INDUSTRIAL SERVICES PORTFOLIO BILFINGER Production Transportation and Storage Consumption Green H2 Production Energy Efficiency & Carbon Reduction CCS Chemicals H2 Transportation Strongly emerging Oil & Gas Nuclear Battery Plants
Slide 31: Nuclear
NUCLEAR HINKLEY POINT C (UK) Piping engineering, prefabrication and installation for Nuclear Steam Supply System, Balance of Nuclear Island and Balance of Plant RWE (GER) Increase in efficiency in dismantling and removal of large components in Mülheim-Kärlich nuclear power plant BGE ASSE (GER) Engin
Slide 32: Nuclear @ Bilfinger
Nuclear @ Bilfinger Opportunities and target offering OVERALL ASSESSMENT TECHNOLOGIES & SERVICES BILFINGER'S RIGHT TO WIN Type of projects Full life-cycle from engineering to ✓ Combine OEM & EPC capabilities installation to decommissioning Technically demanding with high levels ✓ Ability to exec
Slide 33: Hydrogen – Green H2 production and H2 transportation
HYDROGEN – GREEN H2 PRODUCTION AND H2 TRANSPORTATION ENERGIEDIENST (GER) Piping engineering and prefab, mechanical erection of H2 Electrolyzer and associated systems HYDROGENIOUS (MULTI-COUNTRY) Detailed design of LOHC plant for H2 storage and distribution MAASVLAKTE PARK (NL) Feasibility Study and
Slide 34: Hydrogen @ Bilfinger
Hydrogen @ Bilfinger Opportunities and target offering OVERALL ASSESSMENT TECHNOLOGIES & SERVICES BILFINGER'S RIGHT TO WIN Green Hydrogen production Gas Purification For Green Hydrogen Production Integrator of OEM electrolyzer – Water removal – Oxygen removal ✓ Ability to integrate OEM technolog
Slide 35: Carbon Capture & Storage
CARBON CAPTURE & STORAGE CCUS plant AVR Duiven (NL) EPCM of CO2 capture plant for AVR where CO2 is captured from the waste incineration. This CO2 is cleaned, liquefied and stored in tanks, and afterwards shipped by road tankers to the greenhouses for CO2 enrichment. PROJECT PORTHOS (NL) Port of Rott
Slide 36: Carbon Capture @ Bilfinger
Carbon Capture @ Bilfinger Opportunities and target offering OVERALL ASSESSMENT TECHNOLOGIES & SERVICES BILFINGER'S RIGHT TO WIN Costs and taxes for CO2 emissions are Capture and separation Water removal ✓ Technological know-how transferable increasing – Absorption, Adsorption, Separation from g
Slide 37: Battery Plants
BATTERY PLANTS BASF (FIN) Support in building a plant for precursor cathode active materials (pCAM), used as base material in the manufacturing of batteries for electric vehicles; Scope: steel structure, piping, installation, painting & insulation CONFIDENTIAL CLIENT (SWE, POL) EPCM of Battery proce
Slide 38: Battery Production @ Bilfinger
Battery Production @ Bilfinger Opportunities and target offering OVERALL ASSESSMENT TECHNOLOGIES & SERVICES BILFINGER'S RIGHT TO WIN Type of projects Process water treatment modules ✓ Chemical processing expertise transfer Large raw material projects in Nordics Industrial waste water treatment
Slide 39: Energy Efficiency & Carbon Reduction
ENERGY EFFICIENCY & CARBON REDUCTION TIPCheck: öko energie AG (CH) Review of current status and evaluation of results. On this basis precise insulation of steam collectors, cassettes, feedwater tanks, valve stations and other equipment CORROSION UNDER INSULATION: TotalEnergies (UK) Major campaign to
Slide 40: Energy Efficiency & Carbon Reduction @ Bilfinger
Energy Efficiency & Carbon Reduction @ Bilfinger Full asset life cycle management, including the periphery, making sure that brown-field facilities also contribute to carbon reduction Consulting Analytics Design & build Energy planning Energy / process control Energy efficiency Full analysis of proc
Slide 41: Hydro Power, Commercial Heat
HYDRO POWER COMMERCIAL HEAT HYDRO POWER: PSPP Limberg iii / Verbund Hydro power / Kaprun (AUT) Hydro department delivers the up- and downstream high pressure shaft for entire pump storage power plant (PSPP) including special safety gates HYDRO POWER: PS Condemines / Grand dixence / Nendaz (CH) Hydro
Slide 42: €1 billion revenue target by 2024 means doubling the volume
We Make “Sustainable Industrial Services” Work €1 billion revenue target by 2024 means doubling the volume as of today We see many projects of small- €1bn to-mid-scale size with clients Execution plan +100% wanting design & build packages is in place With our agnostic business model and market reput
Slide 43: Strategic Summary and Targets 2024
Strategic Summary and Targets 2024
Slide 44: We are well positioned for growth
We are well positioned for growth Sustainable Industrial Services more than compensate for partly slower development in established areas € Market & volumes Margin profile Cash development Capital allocation Growth areas Improving gross Building on the Dividend of €4.75 per identified margin
Slide 45: Focused M&A strategy
Focused M&A strategy Targeted bolt-on acquisitions to complete our regional and technical footprint Funding Bolt-on M&A € priorities M&A and organic growth investments: several hundred million euros within the next Core Geographies 2 to 3 years Core Industries with high synergy potential Capital all
Slide 46: Well on track to reach 2024 targets
Well on track to reach 2024 targets Revenues [€ million] EBITA adjusted [€ million] / margin [%] org. +5% >250 CAGR1) >5,000 3.7% 4,153 4,327 >5.0% 3,461 3,737 104 1.6% 65 2.4% 137 20 0.6% 2018 2019 2020 2021 … 2024e 2018 2019 2020 2021 … 2024e Free Cashflow reported [€ million] >200 EBITA reported
Slide 47: Financial targets 2024 confirmed
Financial targets 2024 confirmed Revenues EBITA ROCE Free Cash margin reported Flow sustainably min. reported >5 5 8-10 >200 € billion % % € million Investment Grade (mid-term perspective) Sustainable dividend stream going forward Policy: 40 to 60% of adjusted net profit Bilfinger SE I Capital Marke
Slide 48: Q&A session
WE MAKE SUSTAINABILITY WORK Q&A session Capital Markets Day February 10, 2022
Slide 49: 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