Bilfinger Se · XETR:GBF
Bilfinger — Bilfinger Berger — Non-Deal Roadshow (August 2007)
46 slides from Bilfinger's roadshow presentation, Aug 13, 2007
Slide 1: The Multi Service Group: From strategy to reality
The Multi Service Group: From strategy to reality Roadshow Düsseldorf und Köln 13. August 2007 Andreas Müller, Head of Corporate Accounting, Investor Relations, Mergers & Acquisitions Bettina Schneider, Senior Manager Investor Relations
Slide 2: Agenda
Agenda 1. Bilfinger Berger Group – Overview 2. Earnings enhancement in Construction 3. Profitable growth in Services 4. Adding value in Concessions 5. From strategy to reality - Outlook 6. Financials 7. Appendix August 09, 2007 Bilfinger Berger AG Company Presentation Page 1
Slide 3: Bilfinger Berger – The Multi Service Group
Bilfinger Berger – The Multi Service Group Bilfinger Berger is ideally positioned as a Multi Service Group We supply comprehensive solutions in the areas of building, infrastructure, industrial and power services Bilfinger Berger acts globally 67% from an expected output volume of € 8.9 billion
Slide 4: Substantial increase in output volume and orders received
Substantial increase in output volume and orders received due to organic growth and acquisitions Output volume Orders received Order backlog 10,000 10,000 CAGR 10% 10,000 CAGR 14% 10,000 CAGR 11% 9,000 9,000 9,000 8,747 7,936 8,000 8,000 8,000 7,545 7,061 7,001 7,000 7,000 7,000 6,277 6,339 6,111 6,
Slide 5: Double-digit growth rates in EBITA and net profit
Double-digit growth rates in EBITA and net profit Operating cash flow consistently on high level EBITA Net Profit Operating Cash Flow 200 CAGR 30% 100 CAGR 22% 250 CAGR 1% 180 92 207 198 160 80 200 188 66 120 115 60 150 51 81 80 40 100 40 20 50 0 0 0 2004 2005 2006 2004 2005 2006 2004 2005 2006 In €
Slide 6: 67% of expected output volume in 2007 generated internationally
67% of expected output volume in 2007 will be generated on international markets Æ International diversification balances business cycles in individual regions Australia Germany 26% 33% Asia 2007e: 2% €8.9bn Africa 7% America Rest of Europe 8% 24% August 09, 2007 Bilfinger Berger AG Company Presenta
Slide 7: Business portfolio well balanced
Business portfolio well balanced Expected output volume of € 8.9 billion in 2007 Building and Civil Services Concessions Industrial International International International International 2007e: 55% 22% 60% 40% 37% 82% 94% 40% 45% 18% 6% Germany Germany Germany Germany Output volume Committed Equity
Slide 8: Shareholder base as international as our business
Shareholder base as international as our business Institutionals Others Switzerland 6% Retail investors Institutionals 2% 12% Shareholder structure Italy 3% as of December 31, 2006 Institutionals France Institutionals 100% free float 9% Germany 22% High proportion of Institutionals institutional
Slide 9: Agenda
Agenda 1. Bilfinger Berger Group – Overview 2. Earnings enhancement in Construction 3. Profitable growth in Services 4. Adding value in Concessions 5. From strategy to reality - Outlook 6. Financials 7. Appendix August 09, 2007 Bilfinger Berger AG Company Presentation Page 8
Slide 10: Civil: among the leading players for major infrastructure projects
Civil: Bilfinger Berger is among the leading players worldwide for major infrastructure projects Markets Australia: Currently strongest Civil market within the group Germany: Fragmented market structure, price level still unsatisfactory despite improving demand Rest of Europe: Scandinavia, Fra
Slide 11: Civil: Targeting growth opportunities in selected international markets
Civil: Targeting growth opportunities in selected international markets Key issues Four Bears Bridge, Gotthard North Dakota, Base Tunnel, USA Switzerland High order backlog as a result of strong demand in Australia and the Persian Gulf region as well as concession projects Selective bidding in G
Slide 12: Building and Industrial: Focus on selected markets
Building and Industrial: Focus on selected markets Markets Germany: Market revival translates into new orders, additional momentum from increasing acceptance of PPP models High proportion of repeat customers Nigeria: Excellent market position in the oil and gas industry Other regions Australia
Slide 13: Building and Industrial: Strong synergies with Services and Concessions
Building and Industrial: Strong synergies with Services and Concessions segments Key issues Hotel Schloss Fuschl, Hof/Salzburg, Austria Careful approach in Germany in view of rising costs for materials and subcontractor services Selective bidding leads to stable volume at improved earnings quali
Slide 14: Agenda
Agenda 1. Bilfinger Berger Group – Overview 2. Earnings enhancement in Construction 3. Profitable growth in Services 4. Adding value in Concessions 5. From strategy to reality - Outlook 6. Financials 7. Appendix August 09, 2007 Bilfinger Berger AG Company Presentation Page 13
Slide 15: The Services segment comprises Industrial, Power and Facility Services
The Services segment comprises the worldwide businesses of Industrial Services, Power Services and Facility Services Civil Building and Services Concessions Industrial 2007e: € 3.3bn Industrial Power Facility Services Services Services 2007e: 2007e: 2007e: BB Industrial Services INT € 2.0bn € 600m €
Slide 16: Industrial Services with high degree of technical competence
Industrial Services with high degree of technical competence Australia 13% Consul- Germany ting America 37% Full Service 8% Management Engineering 2007e: €2.0bn Main Contracting Bundling of services Rest of Coordination of resources Europe Project related Insulation Electrical 42% Scaffolding Mecha-
Slide 17: Power Services for the entire life cycle
Power Services for the entire life cycle Maintenance Turnarounds Asia 13% Germany Conversion/ Commissioning Modernization 49% Africa Power 19% 2007e: Services Rehabilitation, €600m extending Rest of Construction life-expectancy Europe 19% Design Controlled demolition Output volume by region Bilfin
Slide 18: Facility Services go beyond classic Facility Management
Facility Services go beyond “classic” Facility Management service areas Asset and Property America Management 25% Technical FM- Equipment Consulting Facility Germany Services 2007e: Rest of €700m 66% Technical Commercial FM FM Europe Infrastructural 9% FM “classic” service areas Output volume by reg
Slide 19: Dynamic progress in all three divisions
Dynamic progress in all three divisions Key issues Strong demand in all divisions Services is one of the major growth Key figures areas within the Bilfinger Berger group: 6m 6m in € million Change 2006 > 5% p.a. expected organic growth 2006 2007 Output volume 1,242 1,709 38% 2,881 Acquisitions
Slide 20: Agenda
Agenda 1. Bilfinger Berger Group – Overview 2. Earnings enhancement in Construction 3. Profitable growth in Services 4. Adding value in Concessions 5. From strategy to reality - Outlook 6. Financials 7. Appendix August 09, 2007 Bilfinger Berger AG Company Presentation Page 19
Slide 21: Concessions: Focus on markets with stable conditions
Concessions: Focus on markets with stable political and economic conditions Markets Golden Ears Bridge, Vancouver, Canada Only countries with a stable political and economical environment Sector focus: Transport infrastructure with limited volume risk (roads, bridges, tunnels) Germany Australi
Slide 22: Concessions: Continuous growth of portfolio
Concessions: Continuous growth of portfolio Key issues Competitive edge against pure financial investors is the know-how covering the entire value-chain Three closings in 2007 with additional committed equity of € 24 million after four major closings of in total € 64 million committed equity in
Slide 23: Agenda
Agenda 1. Bilfinger Berger Group – Overview 2. Earnings enhancement in Construction 3. Profitable growth in Services 4. Adding value in Concessions 5. From strategy to reality - Outlook 6. Financials 7. Appendix August 09, 2007 Bilfinger Berger AG Company Presentation Page 22
Slide 24: Strategic outlook
Strategic outlook Expansion of Industrial Services, Power Services and Facility Services: Organic growth and acquisitions Margins above 4% Growth in concession projects: € 400 million committed equity targeted Strong focus on construction results: Margin improvement by at least one per
Slide 25: Financial outlook 2007
Financial outlook 2007 Increase in output volume to €8.9 billion EBITA will grow faster than output volume Net profit will significantly surpass the originally targeted € 100 million ROCE will exceed the cost of capital of 10.5%, as in the previous year August 09, 2007 Bilfinger Berger AG Co
Slide 26: Agenda
Agenda 1. Bilfinger Berger Group – Overview 2. Earnings enhancement in Construction 3. Profitable growth in Services 4. Adding value in Concessions 5. From strategy to reality - Outlook 6. Financials 7. Appendix August 09, 2007 Bilfinger Berger AG Company Presentation Page 25
Slide 27: Volume and contract overview 6m 2007 by business segment
Volume and contract overview 6m 2007 by business segment Output volume Orders received Order backlog 6m 6m 6m 6m 6m 6m 2006 2007 Change 2006 2007 Change 2006 2007 Change Civil 1,270 1,738 37% 2,287 2,429 6% 4,200 5,318 27% Building and Industrial 1,124 920 -18% 936 1,221 30% 1,992 2,055 3% Services
Slide 28: Volume and contract overview 2006 by business segment
Volume and contract overview 2006 by business segment Output volume Orders received Order backlog 2005 2006 Change 2005 2006 Change 2005 2006 Change Civil 2,747 2,973 8% 2,984 4,580 53% 3,344 4,706 41% Building and Industrial 2,081 2,069 -1% 2,122 2,053 -3% 2,095 1,754 -16% Services 2,250 2,881 28%
Slide 29: Half-year EBITA and net profit doubled
Half-year EBITA and net profit doubled Previous year‘s earnings impacted by adjustment of concessions portfolio 6m 2006 6m 2006 in € million after exceptional before exceptional 6m 2007 FY 2006 items items EBITA -15 38 78 180 Amortization of intangibles from acquisitions -4 -6 -10 EBIT -19 72 170 Ne
Slide 30: Increase in balance sheet total due to Concessions and business volume
Increase in balance sheet total due to Concessions and expansion of business volume Assets June 30, 2007 Equity and liabilities In € million In € million 5,694 +565 +565 5,694 Cash and marketable securities 603 -180 +202 2,786 Current liabilities 1) Current assets 2,199 +304 Non-current provisions -
Slide 31: Excess cash position as of June 30, 2007 at approximately €100 million
Excess cash position as of June 30, 2007 at approximately €100 million Dec 31 Mar 31 June 30 in € million 2006 2007 2007 Cash & marketable securities 783 589 603 Financial liabilities (excluding non-recourse) -139 -140 -146 Pension provisions -160 -161 -161 Net cash position 484 288 296 Non-operatio
Slide 32: Lower increase in working capital due to Barwa advance payment
Lower increase in working capital due to advance payment of €180 million for Barwa City project in € million 6m 2006 6m 2007 FY 2006 Cash earnings 78 98 280 Change in working capital / Gains on disposals of non-current assets -218 -156 -73 Cash flow from operating activities -140 -58 207 Net capital
Slide 33: Group ROCE at 16.3% in 2006
Group ROCE at 16.3% in 2006 In € million In % 1,800 20.0 16.5 16.0 13.6 16.3 12.7 13.0 1,600 10.7 10.9 12.0 9.4 8.2 8.8 8.0 1,400 4.0 1,200 0.0 2002 2003 2004 2005 2006 Capital employed ROCE business segments ROCE total group August 09, 2007 Bilfinger Berger AG Company Presentation Page 32
Slide 34: 2006 value added per segment
2006 value added per segment Capital employed Return ROCE WACC Value added in € million in € million in % in % in € million 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 Civil 390 375 61 54 15.7 14.5 11.0 13.0 18 5 Building and Industrial 160 133 2 40 1.3 29.6 11.0 13.0 -15 22 Services 619 783 9
Slide 35: Five-year overview
Five-year overview in € million 2002 2003 2004 2005 2006 Output volume 4,912 5,586 6,111 7,061 7,936 Orders received 5,216 5,605 6,139 7,545 10,000 Order backlog 5,168 6,277 6,339 7,001 8,747 EBITA 74 101 81 115 180 EBT 85 86 91 115 173 Net profit 60 50 51 66 92 - including exceptionals 115 126 Cash
Slide 36: Agenda
Agenda 1. Bilfinger Berger Group – Overview 2. Earnings enhancement in Construction 3. Profitable growth in Services 4. Adding value in Concessions 5. From strategy to reality - Outlook 6. Financials 7. Appendix August 09, 2007 Bilfinger Berger AG Company Presentation Page 35
Slide 37: Growth through acquisitions
Growth through acquisitions Total investment of more than €1 billion Average of ~ € 200 million enterprise value since 2002 investment per year 2002 2003 2004 2005 2006 Jan-Jun Total 2002 2003 2004 2005 2006 Jan-Jun Average 2007 2007 Industrial Services Facility Services Industrial Services Facility
Slide 38: Move into Services
Move into Services Æ Further expansion of our Industrial, Power and Facility Services business Æ Services already contribute 36% of output volume and more than 50% of EBITA Group output volume Group EBITA 99% 86% 76% 74% 68% 64% 94% 67% 51% 35% 31% 33% 1% 14% 24% 26% 32% 36% 6% 33% 49% 65% 69% 67% 2
Slide 39: Expansion of Concessions
Expansion of Concessions Æ Positive growth trend of our portfolio of private-sector concessions (PPP) projects Æ Temporary decline in 2006 due to portfolio adjustment and sale of mature projects Number of projects Committed equity 5 8 9 7 5 171 177 161 4 148 137 4 11 10 8 8 100 6 3 4 47 12/31/2001 1
Slide 40: Concessions portfolio as of 06/30/2007
Concessions portfolio as of 06/30/2007 Investment Equity Method of con- Percentage held Status Concession period volume committed solidation 1) € million % € million Transport Infrastructure - Herrentunnel, Lübeck, Germany 176 50 - 2) E operational 2005 - 2035 - M6, Hungary 482 40 19 E operational 2
Slide 41: Most projects are still under construction or in ramp-up
Most projects are still under construction or in ramp-up Maturity of project portfolio as of June 30, 2007 Preferred Construction Ramp-up Yield Maturity bidder Present value Accumulated cash flows (nominal) 1 project 10 projects 4 projects 4 projects Time East Down & Borders Schools, UK Bedford Scho
Slide 42: Directors' valuation of Concessions portfolio
Directors’ valuation of Concessions portfolio General Specific discount rates The DCF method of valuation is generally used Weighted risk-free basic interest rate is derived from country specific long-term Only projects where “financial close” has treasury bonds (currently 6 %) taken effect ar
Slide 43: Portfolio value depending on discount rates applied
Portfolio value depending on discount rates applied 160 149 126 120 107 91 78 80 67 40 0 -3% -2% -1% Existing +1% +2% Base 10.5% Sensitivity of Net Present Value to different base rates as of December 31, 2006 In € million August 09, 2007 Bilfinger Berger AG Company Presentation Page 42
Slide 44: Financial calendar and share facts
Financial calendar and share facts Nov. 13, 2007 Interim Report Q3 2007 52 week high / low: € 74.73 / € 38.20 (as at August 09, 2007) Closing price August 09, 2007 € 55.46 Nov. 22, 2007 Capital Markets Day Market cap: € 2.1 bn (as at August 09, 2007) Feb. 12, 2008 Preliminary figures 2007 Shar
Slide 45: Other investor information
Other investor information For further information please contact: in € per share 2002 2003 2004 2005 2006 Andreas Müller Bettina Schneider Earnings per share 1.66 1.37 1.39 1.80 2.48 Corporate Accounting Investor Relations Investor Relations Mergers & Acquisitions Dividend 0.55 0.65 1.00 1.00 1.25
Slide 46: 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