Bilfinger Se · XETR:GBF
Bilfinger — Non-Deal Roadshow (August 2023)
48 slides from Bilfinger's roadshow presentation, August 2023
Slide 1: Bilfinger SE Roadshow Presentation
BILFINGER SE Bilfinger SE Roadshow Presentation August, 2023 Hydropower: ÖBB - Obervellach/Tauernmoos
Slide 2: Overview and strategic outline
Overview and strategic outline
Slide 3: Strategy: Sustainable, profitable growth through Re-Positioning and Operational Excellence
Strategy Sustainable, profitable growth through Re-Positioning and driving Operational Excellence Efficiency time No. 1 for customers in enhancing & Sustain- 2027 efficiency and sustainability Bilfinger ability Future 2026 Positioning Growth & 2025 Profit 2024 2023 Bilfinger 6 month 12 m 18 m 24 m T
Slide 4: Our market: Addressable market in Europe, Middle East, North America
Our market: Addressable market in Europe, Middle East, North America Industry trends of efficiency and sustainability ensure continued positive demand in all markets Energy Chemicals & Pharma & Oil & Gas Petrochemicals Biopharma Addressable market 61 bn 34 bn 20 bn 22 bn 30% 10% 20% Bilfinger1 20% C
Slide 5: Green Technology
Green Technology We are a driving force in the industry’s transformation to greater efficiency and sustainability in existing plants and new technologies Growth niches Market Bilfinger examples 5x increase in announced clean hydrogen Bilfinger supports Gasunie in the production capacity for 2030 sin
Slide 6: Our market: Horizontal
Our market: Horizontal With the extension of the our value chain towards a solution partner, we utilize our core competences over all process industries equally Digitalization New builds & Consultancy Engineering Maintenance & Turnarounds Modifications Growth of Bilfinger’s business is similar Frame
Slide 7: Bilfinger offering
Bilfinger offering We are excellently positioned to establish ourselves as the No. 1 in our target markets Digitalization New builds & Consultancy Engineering Maintenance & Turnarounds Modifications Regional footprint Key characteristics 3 Segments About 30,000 employees Our business is organized
Slide 8: Market conditions
Market conditions Customers increasingly require sustainability solutions from their solution partner – this new positioning in the market will raise the entry barriers for the competition and increase our profitability Development of customer requirements Market segmentation High entry barriers & p
Slide 9: Strategic levers
Strategic levers Three strong levers to achieve our goals Functional Organization 1. Efficiency Program Competence Development Procurement Standardization & Bundling 2. Operational Excellence De-Risking Digitalization & Innovation Market Expansion 3. Positioning Sustainability Partne
Slide 10: Business model
Business model The business model is based on improving efficiency and sustainability both for customers and for ourselves, generating added value Business Parameters to drive Vision model business model Our business model No. 1 for customers in Addressable market enhancing efficiency is based on en
Slide 11: Segments
Segments
Slide 12: E&M Europe today
E&M Europe today Digitalization New builds & Consultancy Engineering Maintenance & Turnarounds Modifications Horizontals Verticals Others Projects 25% 20% Chemical & Pharma & 40% Petrochemical Biopharma 5% 10% Energy 75% Frame & 25% service contracts Oil & Gas Revenue [€ m] EBITA adj. [€ m] EBITA ad
Slide 13: E&M Europe in the future
E&M Europe in the future Digitalization New builds & Consultancy Engineering Maintenance & Turnarounds Modifications Horizontals Verticals Projects Others 10% 15% Pharma & Chemical & Biopharma 10% 40% Petrochemical 20% 90% Energy 15% Frame & Oil & Gas service contracts Bundle services to solutions a
Slide 14: E&M Europe: Financial targets
E&M Europe: Financial targets Mid-term CAGR Mid-term profitability target ~4% 7-8% 0.5-1% 0.5-1% ~2% ~1% 5.0% ~2% Market growth Self propelled Target EBITA adj. Efficiency Operational Positioning Target EBITA growth growth margin 2022 Program Excellence margin Bilfinger SE | Roadshow Presentation |
Slide 15: E&M International today
E&M International today Digitalization New builds & Consultancy Engineering Maintenance & Turnarounds Modifications Horizontals Verticals Chemical & Petrochemical 20% Projects 40% 10% Energy 60% Frame & 60% service Others 10% contracts Oil & Gas Revenue [€ m] EBITA adj. [€ m] EBITA adj. margin [%] 9
Slide 16: E&M International in the future
E&M International in the future Digitalization New builds & Consultancy Engineering Maintenance & Turnarounds Modifications Horizontals Verticals Projects Others Chemical & 5% Petrochemical 10% 25% Oil & Gas 30% 90% 40% Frame & service Energy contracts Business transformation into frame & service co
Slide 17: E&M International: Financial targets
E&M International: Financial targets Mid-term CAGR Mid-term profitability target ~6% 5-6% ~3% ~4% ~3% 1-2% ~1% Market growth Self propelled Total growth growth -0,7% EBITA adj. Efficiency Operational Positioning Target EBITA margin 2022 Program Excellence margin Bilfinger SE | Roadshow Presentation
Slide 18: Technologies today
Technologies today Digitalization New builds & Consultancy Engineering Maintenance & Turnarounds Modifications Horizontals Verticals Frame & service contracts Others Oil & Gas Pharma 5% & Bio- Chemicals & 10% pharma Petro- 5% 35% 15% chemicals 95% 35% Projects Energy Revenue [€ m] EBITA adj. [€ m] E
Slide 19: Technologies in the future
Technologies in the future Digitalization New builds & Consultancy Engineering Maintenance & Turnarounds Modifications Horizontals Verticals Others Pharma 5% & Bio- pharma 35% 60% 100% Energy Projects Focus on green Energy, Pharma & Biopharma as well as supporting long-term clients with their invest
Slide 20: Technologies: Financial targets
Technologies: Financial targets Mid-term growth per year Mid-term profitability target ~6% 6-7% ~1% ~3% 1-2% ~3% ~1% 3,0% Market growth Self propelled Target EBITA adj. Efficiency Operational Positioning Target EBITA growth growth margin 2022 Program Excellence margin Bilfinger SE | Roadshow Present
Slide 21: Mid-term targets
Mid-term targets
Slide 22: Financial targets
Financial targets Execution of this strategy allows us to set new mid-term targets 2024 2025-2027 Organic Growth 4-5% CAGR Increasing EBITA ≥5% 6-7% margin Improving Cash >70% >80% Conversion1 1. Cash Conversion: FCF / EBITA Bilfinger SE | Roadshow Presentation | August, 2023 page 22
Slide 23: Sustainable profitable organic growth
Sustainable profitable organic growth Key Performance Indicators to measure our success Revenue [€ m] EBITA [€ m] | Margin [%] 6-7% 4-5% CAGR ≥ 5% 3,7% 3,2% 2,4% 4.327 4.312 0,6% 3.461 3.737 137 140 104 20 2019 2020 2021 2022 2024 2025- 2019 2020 2021 2022 2024 2025- 2027 adjusted 2027 Organic growt
Slide 24: Strategic levers for sustainable profitable organic growth
Strategic levers for sustainable profitable organic growth These three levers will deliver up to 4%points EBITA margin improvement in the next years 6-7% EBITA margin [%] 1% 3. Positioning ≥5% 1% 1-2% 2. Operational Excellence 1% 1% 1. Efficiency Program 3% 3% 3% 2022 2024 2025-2027 Bilfinger SE | R
Slide 25: Profitability to drive cash generation
Profitability to drive cash generation Increasing cash conversion to consistently more than 80% EBITA [€ m] | Margin [%] Free Cash Flow [€ m] | Cash Conversion [%] 6-7% ≥ 5% 3,7% 3,2% 2,4% >80% 0,6% >70% 137 140 136 104 93 115 57 20 2019 2020 2021 2022 2024 2025- 2019 2020 2021 2022 2024 2025- adjus
Slide 26: Working Capital improvements
Working Capital improvements A strong cash focus throughout the organization De-risking Revenue [€ m] | Average NTA/Revenue [%] contract Enforces faster cash generation 14,5% 14,1% 13,4% portfolio 12,0% 11.5% 10-11% Standardization of offering & 4.372 4.312 Bundling of services 3.737 3.461 Optim
Slide 27: Capital Allocation to drive Total Shareholder Return
Capital Allocation to drive Total Shareholder Return For the financial year 2022, a dividend of € 1.30 was paid out Revenue Growth EBITA Improvements Cash Conversion Dividend: 40-60% of adjusted net profit and continuous growth Organic growth M&A Share buyback Adhere to financial policy and achieve
Slide 28: Sustainability reporting
Sustainability reporting
Slide 29: Sustainability is a key component of our corporate strategy
Sustainability is a key component of our corporate strategy Determination of materiality Our Sustainability targets • Leading partner to • Occupational • Conduct at least enhance efficiency accidents: 600 internal and sustainability of Zero is possible supplier audits customers annually • Climate ne
Slide 30: Bilfinger commits to SBTi
Bilfinger commits to SBTi We target for carbon neutrality by 2030 and Net Zero by 2050 Our business with direct and indirect environmental impact has grown by 50% year-on-year Key milestones of the road to net zero Bilfinger business aligned with the Science Based Targets initiative classified on en
Slide 31: ESG key figures
ESG key figures CO2 footprint reduced, occupational safety has high priority Environment Social GHG Footprint Scope 1, 2 and 3 emissions [tCO2e] Occupational safety 35.609 2.00 1,68 Scope 1 35.643 1.50 TRIF: Total 1,31 Recordable 1.00 Injury Rate 23,765 (location based) 1,06 0,86 LTIF: Lost 0.50 Sco
Slide 32: Financial year 2022
Financial year 2022
Slide 33: FY 2022: Revenue back to pre-crisis level with improved profitability
FY 2022: Revenue back to pre-crisis level of 2019, but with significantly improved profitability 4.153 4.327 4.312 3.461 3.737 Revenue [€ million] 137 140 104 EBITA adjusted 65 [€ million, %] 3.7% 3.2% 2.4% 20 1.6% 0.6% Free cash flow 115 136 93 [€ million] 57 -4 2018 2019 2020 2021 2022 Bilfinger S
Slide 34: Delivered on outlook 2022
Delivered on outlook 2022 Actual FY 2021 Outlook FY 2022 Actual FY 2022 Revenue €3,737 million Significant increase €4,312 million Significant operating EBITA €121 million increase, but impacted by €75 million special items1 Free cash flow €115 million At prior-year level €136 million 1. Sp
Slide 35: Financials Q2 2023
Financials Q2 2023
Slide 36: Key Highlights Q2 2023
Key Highlights Q2 2023 Stable Increased Free cash flow EBITA margin below prior year Orders received Revenue significantly above prior year as expected org. +1% org. +6% 3.9% - €46 million Continued Strategy positive market in implementation & Efficiency program Outlook 2023 development shows first
Slide 37: ESG key figures Q2 2023
ESG key figures Q2 2023 Occupational safety has high priority TRIF: Total Recordable Incident Frequency [based on 1 million working hours] 1,57 1,28 1,31 1,18 1,04 1,03 0,82 „Zero“ is possible Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 YTD/22 YTD/23 LTIF: Lost Time Injury Frequency [based on 1 million working ho
Slide 38: Efficiency program
Efficiency program On track and fully effective as of January 2024 Target as of Thereof achieved Thereof achieved January 1, 2024 by June 30, 2023 in Q2 2023 Capacity reductions - 750 FTEs - 251 FTEs - 225 FTEs One-time costs - € 62 million - €3.3 million - €2.9 million EBITA improvement gross p.a.
Slide 39: Orders received, backlog and revenue
Growth in E&M Europe and particularly strong in Technologies Decrease in E&M International due to restructuring in USA Orders received [€ million] -2% / +1% Orders received stable after high Q1; 1.385 growth at E&M Europe (+6% org.) and 1.272 1.107 1.118 1,085 Technologies (+32% org.) offsets expe
Slide 40: EBITA margin significantly above prior year
EBITA margin significantly above prior year Revenue [€ million] +4% / +6% 1.198 1.120 1.078 1.075 1.053 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 EBITA [€ million, %] 43 37 32 22 3.9% 3.0% 3.4% 2.1% -0.2% -2 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 thereof special 0 0 -54 0 0 items [€ million] ∆ abs. / org. Bilfinger SE |
Slide 41: Gross profit and SG&A costs
Gross profit and margin increased compared to prior year SG&A costs reduced despite inflation and higher revenue Gross profit [€ million, %] 114 121 116 107 100 9.9% 10.6% 10.1% 10.4% 9.5% Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 SG&A expenses [€ million, %] -7.0% -7.3% -6.6% -7.4% -6.5% -76 -78 -78 -73 -79 Q2
Slide 42: Free cash flow and net trade assets
Free cash flow below very good prior-year quarter as expected, higher Net CAPEX Operating cash flow [€ million] Net Trade Assets / DSO / DPO 124 81 515 497 473 428 440 28 Net trade -15 -24 assets [€ million] Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 6/30/2022 9/30/22 12/31/22 3/31/23 6/30/23 Free cash flow [€ m
Slide 43: E&M Europe: Good growth and stable EBITA margin
E&M Europe: Good growth and stable EBITA margin Orders received [€ million] EBITA [€ million, %] +4% / +6% 846 922 694 38 37 39 669 667 25 18 5.2% 5.4% 5.2% 3.6% Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 2.4% Order backlog 1,796 1,772 1,876 2,098 2,064 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 [€ million] Book-to-bill 0.92
Slide 44: E&M International: Middle East positive, US restructuring impacts
E&M International: Middle East with positive development, US restructuring impacts performance Orders received [€ million] EBITA [€ million, %] -22% / -23% 223 249 241 -0.6% 197 -0.9% -1.4% 155 -1 -2 -2.0% -3.3% -2 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 -5 -6 Order backlog [€ million] 550 591 550 607 591 Q2/
Slide 45: Technologies: High increase in orders received and revenue
Technologies: High increase in orders received and revenue, mainly due to biopharma and energy projects, EBITA margin also significantly improved Orders received [€ million] EBITA [€ million, %] +30% / +32% 8 225 6 187 193 5 173 138 3 4.4% 4.0% 3.0% 2.3% Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 -0.6% -1 Order
Slide 46: Market development unchanged
Market development unchanged Continued positive demand despite challenges for the industry Energy | 20%1) Chemicals & Petrochem | 25%1) Energy transition: new technology and improvement in energy Maintenance activities remain at a high level efficiency Increased necessity for efficiency improv
Slide 47: Outlook FY 2023 confirmed
Outlook FY 2023 confirmed Actual FY 2022 Outlook FY 2023 YTD 2023 Revenue €4,312 million €4,300 to €4,600 million €2,173 million EBITA margin 1.8% (3.2%1)) 3.8 to 4.1% 3.0% Free cash flow €136 million €50 to €80 million2) - €73 million 1) adjusted by special items 2) incl. ~€60m cash-out for Efficie
Slide 48: 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 expectations