Bilfinger Se · XETR:GBF
Bilfinger — Investor Day (November 2013)
27 slides from Bilfinger's investor day presentation, Nov 29, 2013
Slide 1: We Make Power Systems Work
Bilfinger Power Systems GmbH WE MAKE POWER SYSTEMS WORK Capital Markets Day – Gerd Lesser November 29, 2013
Slide 2: Agenda
Agenda 1. Portfolio and strategy 2. Development of output volume 3. End markets and customer structures 4. Current challenges / Key success factors 5. Cooperation within Bilfinger 6. Current status and perspectives of German and international energy markets (thermal power plants excl. nuclear energy
Slide 3: Management structure – Division Power Systems
1. Portfolio and strategy 1.1 Management structure – Division Power Systems Bilfinger SE Division Power Systems Nuclear & Machinery & Electrical & Control Energy Technology Environmental Apparatus Technology Technology Engineering Babcock Borsig Bilfinger Bilfinger Babcock Noell Bilfinger Mauell Ste
Slide 4: Strategy / Positioning
1. Portfolio and strategy 1.2 Strategy / Positioning Technological competence with a vertical integration of Stable market with good growth potential in Germany up to 75% and internationally Manufacturer independent Modernization of existing plants with in-house state- Current markets: of-
Slide 5: Product competences: Overview conventional power plants
1. Portfolio and strategy 1.3 Product competences of the Group Overview conventional power plants Steam Turbine Economizer Reheater Generator Steam Generator Superheater Condenser Feed Water Cooling Tower Control Room System Control Room Process Control Technology Up to 32 Monitors Firing DeNOx - SC
Slide 6: Product competences: Energy Technology
1. Portfolio and strategy 1.3 Product competences of the Group I. Energy Technology The Group's service concept comprises a broad spectrum of engineering Bitola Power Plant | Macedonia and individual customer care: ▪ Rehabilitation of three lignite-fired boilers of Russian design Boiler technology
Slide 7: Product competences: Nuclear & Environmental Technology
1. Portfolio and strategy 1.3 Product competences of the Group II. Nuclear & Environmental Technology Environmental technology ▪ Construction and conversion of flue gas purification systems (REA, DENOX, dust removal) Nuclear service ▪ Service, inspections, repairs, maintenance for nuclear power syst
Slide 8: Product competences: Moorburg and Olkiluoto 3
1. Portfolio and strategy 1.3 Product competences of the Group Moorburg Power Plant, Germany Nuclear Power Plant Olkiluoto 3, Finland Capital Markets Day 2013 - Bilfinger SE Page 8
Slide 9: Product competences: Machinery & Apparatus Engineering
1. Portfolio and strategy 1.3 Product competences of the Group III. Machinery & Apparatus Engineering Components for: Gas and steam turbines Water turbines Aerospace Nuclear technology Foundations for offshore wind turbines Machine assembly Welded structures Hüttenwerksmaschinen
Slide 10: Product competences: Electrical & Control Technology
1. Portfolio and strategy 1.3 Product competences of the Group IV. Electrical & Control Technology Process control technology Remote control technology – control systems for supply grids Network control technology Power plant control technology Station control technology Visualization sy
Slide 11: Development of output volume 2002 – 2013
2. Development of output volume 2002 – 2013 (€ million) Capital Markets Day 2013 - Bilfinger SE Page 11
Slide 12: Development of output volume 2012
3. End markets and customer structures 3.1 Development of output volume 2012 2% 1% Germany 28% Rest of Europe 33% Africa 36% Asia Americas Capital Markets Day 2013 - Bilfinger SE Page 12
Slide 13: Locations
3. End markets and customer structures 3.2 Locations Poland Capital Markets Day 2013 - Bilfinger SE Page 13
Slide 14: Customer structures
3. End markets and customer structures 3.3 Customer structures Customer structure: Utilities 85 % / Industrials 15 % Typical contract sizes ▪ Utilities (e.g. Eskom €160 million, PGE €120 million, ▪ Service: from €1,000 up to approx. €20 million RWE €110 million, IEC €50 million) ▪ Projects:
Slide 15: Key success factors: Competitive advantages
4. Key success factors / current challenges Competitive advantages ▪ High degree of vertical integration: engineering, assembly, manufacturing from a single source ▪ Processing quality, i.e. on-time delivery, execution periods, manufacturing and assembly quality ▪ Strong expertise in the modernizati
Slide 16: Key success factors: Challenges
4. Key success factors / current challenges Challenges ▪ Substantial decrease in new construction of major power plants in Germany and thus more intense competition in service in the medium term ▪ Competition in power plant service is also increasing on an international level ▪ In the long term, ren
Slide 17: Cooperation within Bilfinger: Boxberg Power Plant
5. Cooperation within Bilfinger Boxberg Power Plant, Germany Bilfinger Piping Technologies High-pressure piping systems Babcock Borsig Steinmüller Heat displacement system, boiler assembly Babcock Noell GmbH Flue gas desulfurization system Bilfinger MCE Aschersleben Feed water tank & flash tank Bilf
Slide 18: Cooperation within Bilfinger: Belchatov Power Plant
5. Cooperation within Bilfinger Belchatov Power Plant, Poland Main supplier Power Systems Boiler modernization, etc. Industrial Services Boiler insulation Industrial Services Piping insulation Industrial Services Scaffolding Infrastructure Foundations Capital Markets Day 2013 - Bilfinger SE Page 18
Slide 19: Germany: Share by energy source
6. Current status and perspectives of German and international energy markets 6.1 Germany Share by energy source ▪ Since the introduction of the German Renewable Energy Act in 2000, the Gross electricity generation 2012 in Germany: 617 billion kilowatt hours * renewable energy share of electricity N
Slide 20: Germany: Less efficient operation of fossil fuel plants
6. Current status and perspectives of German and international energy markets 6.1 Germany Operation of fossil fuel power plants is becoming less efficient: Feeding of more limited amount of electricity due to increasing volume of renewable energy. Often lower price of electricity as a result e
Slide 21: Germany: Mechanisms for energy pricing
6. Current status and perspectives of German and international energy markets 6.1 Germany Mechanisms for energy pricing ▪ In the energy market to date (small share from renewable energies) pricing was carried out through the marginal costs of the power plant type. ▪ In the situation presented here a
Slide 22: EU energy goals
6. Current status and perspectives of German and international energy markets 6.2 EU energy goals ▪ The goal of the EU is to increase the share of renewable energies in overall energy consumption to 20% by 2020. ▪ Despite the expansion of renewable energies, conventional power plants will cover the
Slide 23: Energy production worldwide
6. Current status and perspectives of German and international energy markets 6.3 Energy production worldwide ▪ Energy production will increase in line with growing demand for electricity. This will happen primarily in the current developing countries. ▪ Fossil energy sources will continue to cover
Slide 24: CO2 reduction within the scope of energy production
6. Current status and perspectives of German and international energy markets 6.4 CO2 reduction within the scope of energy production Opportunities to reduce CO2 emissions in energy production: ▪ Efficiency enhancements at coal- fired power plants and thus emission reduction ▪ Increased use of gas p
Slide 25: Conclusion
6. Current status and perspectives of German and international energy markets 6.5 Conclusion Stable market due to rising global demand for energy Bilfinger offers highest level of expertise in current technology Social importance of this market is rising Political influence is very high (and
Slide 26: Conclusion – Consequences for Bilfinger
6. Current status and perspectives of German and international energy markets 6.5 Conclusion - Consequences for Bilfinger ▪ Maintenance business ▪ In the coming years at a constant level – small number of new power plants means that the old ones must run longer. ▪ A reduction will follow over the lo
Slide 27: Strong arguments for efficiency improvements at power plants!
Bilfinger Power Systems GmbH Strong arguments for efficiency improvements at power plants! Thank you for your attention! November 29, 2013