Bilfinger Se · XETR:GBF
Bilfinger — Non-Deal Roadshow (February 2024)
54 slides from Bilfinger's roadshow presentation, February 2024
Slide 1: Bilfinger SE Roadshow Presentation
Bilfinger SE - Leading in Industrial Services - BILFINGER SE ROADSHOW PRESENTATION February 2024
Slide 2: Overview and Strategic Outline
OVERVIEW AND STRATEGIC OUTLINE
Slide 3: Strategy
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: 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 10: 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 11: Segments
BiLFINGER @ SEGMENTS
Slide 12: E&M Europe today
E&M Europe today Digitalization New builds & Consultancy Engineering Maintenance & Turnarounds Modifications Horizontals Horizontals Verticals Verticals Others Projects 25% 20% Chemical & Pharma & 40% Petrochemical Biopharma 5% 10% Energy 75% Frame & 25% service contracts Oil & Gas Revenue [€ m] EBI
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 14 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 17 Bilfinger SE | Roadshow Presentati
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 20 Bilfinger SE | Roadshow Pres
Slide 21: Mid-Term Targets
BiLFINGER 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 22 Bilfinger SE | Roadshow Presentation | February, 2024
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 24 Bilfinger SE
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 A dividend of € 1.30 will be proposed to next Annual General Meeting 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 ac
Slide 28: Preliminary Figures FY 2023, Quarterly Statement Q4 2023
PRELIMINARY FIGURES FY 2023 QUARTERLY STATEMENT Q4 2023
Slide 29: Highlights FY 2023
Highlights FY 2023 Orders received Revenue EBITA margin Free cash flow €4,735 million €4,486 million from 1.8% to from €136 million to org. +5% org. +7% 4.3% €122 million € Outlook 2024 Positive Dividend proposal Capital Markets Day Revenue €4.5-4.8 bn market situation €1.80 June 12, 2024 EBITA 4.9-
Slide 30: Outlook FY 2024: Sustainable profitable growth
Outlook FY 2024: Sustainable profitable growth Actual Actual Outlook Mid-term targets [€ million, %] FY 2022 FY 2023 FY 20241) 2025-2027 from to Revenue 4,312 4,486✓ 4,500 4,800 4 - 5% CAGR EBITA margin 1.8% 4.3% ✓ 4.9% 5.2% 6 - 7% Free cash flow 136 122 ✓ 100 1402) >80% Cash Conversion 1) Without S
Slide 31: No. 1 in efficiency & sustainability
No. 1 in efficiency & sustainability Strategy implementation on track to reach mid-term targets Efficiency Completed Program Functional Implemented & established Organization Competence Pilot Bilfinger education GmbH Development Standardization & Global Product Center established Bundling De-Risking
Slide 32: ESG: Significant reduction in CO2 Scope 1 and 2
ESG: Significant reduction in CO2 Scope 1 and 2 E: Environment Revenue Sustainable Services [€ million] S: Social GHG Footprint Scope 1, 2 and 3 emissions [ktCO2e] Occupational Safety 4,312 4,486 TRIF: Total Recordable LTIF: Lost Time Injury Incident Frequency Frequency Scope 1 + 2 [market-based] 1.
Slide 33: Efficiency program
Efficiency program Completed and fully effective in 2024 Target as of Achieved by January 1, 2024 December 31, 2023 Capacity reductions - 750 FTEs - ~800 FTEs Total costs - €62 million - €60 million (thereof cash-out - €20 million) EBITA improvement gross p.a. + €55 million + €55 million (from Janua
Slide 34: FY 2023: Increase in orders received and revenue
FY 2023: Increase in orders received and revenue despite planned reduction in USA Growth primarily in the pharma and nuclear sectors Orders received [€ million] +3%/+5% +3%/+5% ▪ Orders received: 4,615 4,735 ▪ E&M Europe +6% 1,272 1,385 1,236 1,028 1,117 1,107 1,118 1,085 1,030 34% 38% Projects ▪ Te
Slide 35: Selected Orders
Selected Orders Chemicals & Petrochemicals Oil & Gas Energy Yara Shell Proxima Fusion Sluiskil, Netherlands Louisiana, USA Munich, Germany E&M Europe E&M International Technologies © Photographic Services, © MPI für Plasmaphysik, Shell, Allison Smith Anja Ullmann © Yara Bundling engineering and Main
Slide 36: Innovation: Digitalization in scaffolding
Innovation: Digitalization in scaffolding 3D modeling and augmented reality for enhanced efficiency Customer Order Already in use at customers Bilfinger Contribution • Rapid scaffolding implementation for time-critical maintenance • Step-by-step simplicity: Up to Erecting a scaffold as if • Meeting
Slide 37: Financial highlights Q4 2023
Financial highlights Q4 2023 Q4/22 Q4/23 Orders received €1,272 million €1,236 million Revenue €1,198 million €1,195 million EBITA margin -0.2% 5.8% Net profit - €6 million €108 million 37 Bilfinger SE | Roadshow Presentation | February, 2024
Slide 38: Annual targets for 2023 exceeded
Annual targets for 2023 exceeded [€ million, %] Actual FY 2022 Outlook FY 2023 Actual FY 2023 from to Revenue 4,312 4,300 4,600 4,486 ✓ EBITA margin 1.8% 3.8% 4.1% 4.3% ✓ w/o special items and one-time effects 3.0% 4.0%2) Free cash flow 136 50 801) 122 ✓ w/o special items and one-time effects 138 11
Slide 39: Positive development in revenue and EBITA
Positive development in revenue and EBITA, EBITA margin improvement in all segments +4% / +7% Revenue [€ million] +22%/+20% 0%/+2% 4,312 4,486 1,198 1,120 1,117 1,195 982 1,078 1,075 1,053 961 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 FY/22 FY/23 ∆ abs. / org. EBITA [€ million, %] 69 191
Slide 40: Gross profit and SG&A expenses improved
Gross profit and SG&A expenses improved compared to prior year Gross profit [€ million, %] 121 116 123 123 437 463 114 107 107 100 95 10.9% 9.9% 10.6% 10.1% 10.4% 11.0% 10.3% 10.1% 10.3% 9.9% 9.5% Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 FY/22 FY/23 SG&A expenses [€ million, %] -7.7% -7
Slide 41: P&L development
P&L development Earnings FY/23 per share: €4.84 190 182 181 -26 163 3 -4 ▪ EBIT from €75 to €190 million -43 61 (includes €13 million in capital gains from real estate disposals) ▪ Income taxes from -€20 million to +€18 million EBIT Financial EBT Taxes Reversal EAT cont. EAT discont. Minorities Net
Slide 42: Cash-out efficiency program partially shifted to 2024
Cash-out efficiency program partially shifted to 2024, positive one-time effect from real estate disposals of €26 million Operating cash flow [€ million] 166 151 115 124 121 81 70 28 -15 -24 -67 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 FY/22 FY/23 Free cash flow [€ million] Adjusted Cas
Slide 43: E&M Europe: Orders received at a good level
E&M Europe: Orders received at a good level, consistently high share of revenue from frame and service contracts Orders received [€ million] +6% / +8% Revenue split [FY 2023, %] +32%/+32% -4%/-3% 2,918 3,094 846 922 736 808 641 669 667 694 670 Projects 20% Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q
Slide 44: E&M Europe: Targeted growth reflected in higher margin
E&M Europe: Targeted growth is reflected in higher margin; inflation was passed on through pricing EBITA [€ million, %] 161 53 44 39 105 38 37 29 5.4% 25 6.6% 18 6.0% 3.8% 5.2% 5.4% 5.2% 4.4% 13 3.6% 2.0% 2.4% Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 FY/22 FY/23 thereof special -11 -10
Slide 45: E&M International: Middle East positive, repositioning in USA
E&M International: Middle East with positive development, repositioning in USA leads to more steady revenue development Orders received [€ million] Revenue split [FY 2023, %] +58%/+43% -12% / -10% -15%/-13% 249 241 833 197 223 211 733 158 163 155 127 Projects Frame and 30% service contracts Q4/21 Q1
Slide 46: E&M International: Positive EBITA contribution
E&M International: Repositioning in USA leads to positive EBITA contribution EBITA [€ million, %] 9 3 0.4% 3 5.4% 2 2.1% 1.0% -0.5% -0.6% -1.0% -0.9% -1.4% -1 -1 -2.0% -2 -3.3% -2 -5 -6 -8 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 FY/22 FY/23 thereof special -3 2 1 0 0 0 -3 0 0 0 2 items
Slide 47: Technologies: Significant increase in orders and revenue
Technologies: Significant increase in orders received and revenue, with continued good demand from the pharmaceutical and nuclear industry Orders received [€ million] +16% / +16% Revenue split [FY 2023, %] +26%/+26% -3%/-3% 225 777 Frame and 173 173 187 193 185 175 672 service contracts 143 138 5% Q
Slide 48: Technologies: EBITA margin sustainably improved
Technologies: EBITA margin sustainably improved EBITA [€ million, %] 10 10 33 8 6 5 5.5% 5.1% 4.5% 3 3 4.4% 4.0% 3.0% 8 1.8% 0 2.3% 0.1% 1.4% -0.6% -1 FY/22 FY/23 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 thereof special -9 -1 -1 0 0 0 -9 0 0 0 -1 items [€ million] 48 Bilfinger SE | Road
Slide 49: Positive market situation: Chemical & Petrochem., Energy
Positive market situation across all regions and sectors Chemical & Petrochem. ~30% Energy ~20% Industry Bilfinger Industry Bilfinger Maintenance Maintenance Product Product Project Project ▪ Positive development in the USA and Middle East – decline in ▪ First specific investment decisions in the ar
Slide 50: Positive market situation: Pharma & Biopharma, Oil & Gas
Positive market situation across all regions and sectors Pharma & Biopharma ~10% Oil & Gas ~15% Industry Bilfinger Industry Bilfinger Maintenance Maintenance Product Product Project Project ▪ Positive development in CAPEX on new plants ▪ Oil companies are investing more OPEX in oil & gas – less ▪ Ex
Slide 51: Substantiated sustainable growth
Substantiated sustainable growth Opportunity pipeline [indexed on Jan 2022] Outlook 2024 [€ million] 112 115 110 105 106 105 102 107 100 99 99 98 102 97 99 101 103 101 96 98 99 102 94 95 4,500 - 4,800 4,486 E&M Europe 2,979 2,900 - 3,200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Ap
Slide 52: Outlook FY 2024
Outlook FY 2024 Actual FY 2023 Outlook FY 2024 1) Outlook EBITA margin [%] 5.2% Revenue €4,486 million €4,500 to €4,800 million 5.05% Midpoint Actual 4.9% 4.3% 4.3% 4.1% EBITA margin 4.9 to 5.2% 3.8% Free cash flow €122 million €100 to €140 million 2) FY/23 FY/24 1) Without Stork 2) Including ~ €40
Slide 53: Highlights FY 2023
Highlights FY 2023 Orders received Revenue EBITA margin Free cash flow €4,735 million €4,486 million from 1.8% to from €136 million to org. +5% org. +7% 4.3% €122 million € Outlook 2024 Positive Dividend proposal Capital Markets Day Revenue €4.5-4.8 bn market situation €1.80 June 12, 2024 EBITA 4.9-
Slide 54: 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