Bilfinger Se · XETR:GBF
Bilfinger — Kepler Cheuvreux German Corporate Conference 2024
41 slides from Bilfinger's conference presentation, Jan 15, 2024
Slide 1: Bilfinger SE - Leading in Industrial Services
Bilfinger SE - Leading in Industrial Services - KEPLER CHEUVREUX GERMAN CORPORATE CONFERENCE 2024 January 15, 2024 Dr. Thomas Schulz, Group CEO Bettina Schneider, Senior Vice President Group Treasury & Investor Relations
Slide 2: Virtual Year-End Lunch Meeting 2023
Virtual Year-End Lunch Meeting 2023
Slide 3: Regions: Market dynamics show some variances
Regions: Market dynamics show some variances Selected statements United Kingdom • Offshore industrial action now settled with stable outlook going Nordics forward • Global oil & gas demand continues to be on high level • Initiatives to become independent from Russian energy is driving • Stable Norwe
Slide 4: Industries: Overall stable situation
Industries: Overall stable situation Energy | ~20% Chemicals & Petrochem | ~30% ▪ Energy transition: new technology and improvement ▪ Maintenance activities remain at good level, in energy efficiency with regional differences ▪ Increasing investments in green energy, decision- ▪ Increased necessity
Slide 5: Strategy
Strategy Sustainable, profitable growth through Re-Positioning and driving Operational Excellence Efficiency year No. 1 for customers in enhancing Bilfinger & Sustain- 2027 efficiency and sustainability Future ability 2026 Positioning 2025 2024 2025-2027 2024 Growth 4-5% CAGR 2023 EBITA margin ≥5% 6
Slide 6: 1. Strategic lever: Efficiency Program
1. Strategic lever Efficiency Program Status Efficiency Program Functional Organization ▪ On track and fully effective as of January 2024 ▪ On track and fully effective as of January 2024 Thereof ▪ Built for organizational efficiency Target as of achieved by January 1, 2024 September 30, ▪ Lean mana
Slide 7: 2. Strategic lever: Operational Excellence
2. Strategic lever Operational Excellence Standardization & Bundling: Global Product Center ▪ Structure defined by end of 2023, Bilfinger Bilfinger Bilfinger roll-out completed by end of 2024 Project Maintenance Turnaround ▪ Standardized execution and bundled services Solutions Solutions Solutions ▪
Slide 8: 3. Strategic lever: Positioning
3. Strategic lever Positioning Market Expansion Acquisition of Fluor’s Stork industrial services business in the Netherlands and Belgium ▪ Timeline: fully effective by 2025 to 2027 ▪ Full line offering in all existing geographies – core expansion ▪ Revenue 2022: € 528 million ▪ Expanding into other
Slide 9: Financials January to September 2023 support guidance and mid-term targets
Financials January to September 2023 support achievement of guidance and mid-term targets +5% +5% 3,343 3,500 3,226 3,378 Order Order Received Backlog [€ million] [€ million] Jan - Sep Jan - Sep Dec 31, Sep 30, 2022 2023 2022 2023 +6% M&A 3,114 3,290 2-3% CAGR Self-propelled growth Revenue ~2% CAGR
Slide 10: Group outlook FY 2023 confirmed
Group outlook FY 2023 confirmed Actual FY 2022 Outlook FY 2023 Jan-Sep 2023 Revenue €4,312 million €4,300 to €4,600 million €3,290 million EBITA margin 1.8% (3.2%1)) 3.8 to 4.1% 3.7% Free cash flow €136 million €50 to €80 million2) -€12 million 1) adjusted by special items 2) incl. ~€60m cash-out fo
Slide 11: Opportunity pipeline per month
Opportunity pipeline per month Opportunity pipeline per month [indexed on Jan 2022] Orders received and revenue [m€], Book-to-Bill [ratio] Orders received [m€] Revenue [m€] 105 106 105 102 107 102 103 100 99 99 98 97 99 101 101 98 99 102 94 95 96 Book-to-Bill [ratio] 1.5 1.4 1.2 1.2 1.2 1.1 1.1 1.1
Slide 12: Key Highlights
Key Highlights Efficiency program Functional organization Global Product Center M&A: Stork fully effective by established by defined by closed by January 1, 2024 end of 2023 end of 2023 mid-2024 Next Overall Merry Christmas Group outlook 2023 Capital Markets Day stable in the course of the and a con
Slide 13: Quarterly Statement Q3 2023
g= a BiLFINGER Quarterly Statement Q3 2023
Slide 14: Key Highlights Q3 2023
Key Highlights Q3 2023 Orders received Revenue org. -5% org. +7% EBITA margin Free cash flow decrease due to despite decrease 5.1% €61 million repositioning USA in USA as planned significantly above prior year in line with expectations M&A: Signing Stork Overall Another step in stable implementing t
Slide 15: ESG key figures Q3 2023
ESG key figures Q3 2023 Occupational safety has high priority TRIF: Total Recordable Incident Frequency [based on 1 million working hours] 1.55 1.42 1.31 1.20 1.17 1.18 0.86 „Zero“ is possible Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 YTD/22 YTD/23 LTIF: Lost Time Injury Frequency [based on 1 million working ho
Slide 16: Stable orders received at E&M Europe and Technologies
Stable orders received at E&M Europe and Technologies, in total decrease due to repositioning in USA Orders received [€ million] -8% / -5% ▪ Orders received mixed: stable at E&M Europe 1,272 1,385 1,118 1,085 1,030 (+2 org.) and Technologies (-1% org.), lower 35% 36% 39% 44% 32% Projects level at E&
Slide 17: Selected orders
Selected orders Oil & Gas Hydropower Biopharma CNR International Ignitis Gamyba North Sea, UK Kruonis, Lithuania Northern Europe E&M Europe E&M Europe Technologies © CNRI © Ignitis Gamyba Design-build piping Major MMO services Market expansion: First package in the multi- framework agreement for hyd
Slide 18: Innovation: Energy efficiency calculations with Rotalysis
Innovation: Energy efficiency calculations with Rotalysis Cost-effective and easy-to-use digital solution for optimizing pump operations Customer Order Already in use at the customer Bilfinger contribution • Digital solution to support optimal speed of pumps for maximum efficiency and performance >5
Slide 19: Efficiency program
Efficiency program On track and fully effective as of January 2024 Thereof achieved Target as of Thereof achieved by September 30, January 1, 2024 in Q3 2023 2023 Capacity reductions - 750 FTEs - 452 FTEs - 201 FTEs One-time costs - €62 million - €6.4 million - €3.1 million EBITA improvement gross p
Slide 20: Financial highlights Q3 2023
Financial highlights Q3 2023 € Orders received Revenue org. -5% org. +7% Gross margin SG&A ratio decrease due to despite decrease improved to improved to repositioning USA in USA as planned 11.0% 6.3% EBITA margin Net profit Earnings per share Free cash flow 5.1% €37 million €0.98 €61 million signif
Slide 21: Significant jump in EBITA margin to more than 5%
Significant jump in EBITA margin to more than 5% Increase in all three segments Revenue [€ million] +4% / +7% 1,198 1,120 1,117 1,075 1,053 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 EBITA [€ million, %] 57 43 37 22 5.1% 3.4% 3.9% 2.1% -0.2% -2 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 thereof special 0 -54 0 0 0 items [€ m
Slide 22: Gross profit and margin improved compared to prior year
Gross profit and margin improved compared to prior year SG&A costs with first effects from efficiency program, good cost discipline offsets inflation effects Gross profit [€ million, %] 121 116 123 114 100 10.6% 10.1% 10.4% 11.0% 9.5% Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 SG&A expenses [€ million, %] -7.3%
Slide 23: P&L development
P&L development Q3/23 Earnings 57 57 per share: 0 49 €0.98 -8 -11 38 37 0 -1 ▪ EBITA significantly Q3/23 increased ▪ No special items in the current quarter EBITA Special EBITA Financial EBT Taxes EAT cont. EAT Minorities Net profit adjusted items result discont. ▪ Net profit thus significantly high
Slide 24: Free cash flow close to prior-year level
Free cash flow close to prior-year level Operating cash flow [€ million] Net Trade Assets / DSO / DPO 124 81 70 531 473 497 428 440 Net trade -15 -24 assets Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 [€ million] Free cash flow [€ million] 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 124 69 61 DSO [days] 74 62 72 74
Slide 25: E&M Europe: Double-digit revenue growth, EBITA margin at 6%
E&M Europe: Double-digit revenue growth, EBITA margin at 6% Orders received [€ million] EBITA [€ million, %] 0% / +2% 846 922 44 667 694 670 37 39 25 18 6.0% 5.4% 5.2% Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 3.6% 2.4% Order backlog Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 [€ million] 1,772 1,876 2,098 2,064 1,989 Book-t
Slide 26: E&M International: Middle East positive, restructuring in USA
E&M International: Middle East with positive development, restructuring in USA impacts performance, EBITA >0 Orders received [€ million] EBITA [€ million, %] -43% / -42% 2 223 249 241 1.0% 155 -0.9% 127 -1.4% -2 -2.0% -3.3% -2 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 -5 -6 Order backlog [€ million] 591 550 607
Slide 27: Technologies: Stable orders received; revenue significantly up
Technologies: Stable orders received; revenue with significant increase, EBITA margin also significantly improved Orders received [€ million] EBITA [€ million, %] -1% / -1% 10 225 8 187 193 185 6 138 5 5.5% 4.4% 4.0% 3.0% Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 -0.6% -1 Order backlog [€ million] 726 688 705 7
Slide 28: Acquisition of Fluor's Stork industrial services business
Acquisition of Fluor’s Stork industrial services business in the Netherlands & Belgium
Slide 29: Executive Summary
Executive Summary Acquisition of Fluor’s Stork industrial services business • Signing of agreement to acquire Fluor’s Stork industrial services business mainly in the Netherlands and Belgium as well as a few entities in Germany and one in the US • Expected closing: First half of 2024 • Revenue 2022:
Slide 30: Transaction highlights
Transaction highlights Value-enhancing for all stakeholder groups EPS accretive Perfect 2,720 additional from strategic fit skilled employees closing on Creates Supports Strengthens strong value for our the Group’s our customers profitable growth mid-term targets 30 Bilfinger SE | Kepler Cheuvreux G
Slide 31: Progressing the implementation of our strategy
Acquisition of Fluor’s Stork industrial services business in the Netherlands and Belgium Progressing the implementation of our strategy to become No. 1 in efficiency and sustainability Efficiency year No. 1 for customers in enhancing Bilfinger & Sustain- 2027 efficiency and sustainability Future abi
Slide 32: Bilfinger E&M Europe: Belgium / Netherlands
Bilfinger E&M Europe Belgium / Netherlands is an important and high-performing region Digitalization New builds & Consultancy Engineering Maintenance & Turnarounds Modifications Revenue 2022 Verticals 2022 Headcount 2022 Eastern Europe Belgium / Netherlands Other Belgium / Netherlands Eastern Europe
Slide 33: Profile of transaction scope
Profile of transaction scope Perfect fit in terms of service portfolio, geography and verticals Digitalization New builds & Consultancy Engineering Maintenance & Turnarounds Modifications Revenue 2022 Verticals 2022 Headcount 2022 Germany US Others Germany US 4% Oil & Gas 5% 4% 8% 11% Belgium 15% 12
Slide 34: E&M Europe combined businesses
E&M Europe combined businesses Positions Bilfinger as solution partner in Belgium and Netherlands Belgium/Netherlands Belgium/Netherlands Products offered: Verticals covered: Acquired business Bilfinger Acquired business Bilfinger Engineering (✓) ✓ Energy ✓ ✓ Maintenance – Mechanical ✓ (✓) Chemical
Slide 35: In line with Bilfinger strategy
In line with Bilfinger strategy Our strategic levers enable us to integrate the business and to achieve our mid-term targets Functional ▪ Integration into Bilfinger functional organization, increasing efficiency and Profitability Organization realizing cost synergies in overhead Competence ▪ Doublin
Slide 36: Financial deal rationale
Financial deal rationale Attractive valuation, purchase price fully financed with existing cash EPS accretive from closing on Equity value / Purchase price € 26 million Net debt and debt-like items € 50 million Enterprise value € 76 million Enterprise value excl. IFRS 16 operating € 39 million lease
Slide 37: Timeline
Timeline Transaction scope will be fully integrated by mid 2025 Expected Signing Full integration closing By mid 2025 First half of 2024 September 6, 2023 37 Bilfinger SE | Kepler Cheuvreux GCC 2024 | January 15, 2024
Slide 38: Financial targets
Financial targets Transaction supports achievement of mid-term targets Outlook 2023 confirmed 2024 2025-2027 Organic Growth 4-5% CAGR Increasing EBITA ≥5% 6-7% margin Improving Cash >70% >80% Conversion1 1 Cash Conversion: FCF / EBITA 38 Bilfinger SE | Kepler Cheuvreux GCC 2024 | January 15, 2024
Slide 39: Capital Allocation to drive Total Shareholder Return
Capital Allocation to drive Total Shareholder Return Value-accretive acquisitions being an important tool to drive Total Shareholder Return Revenue Growth EBITA Improvements Cash Conversion Dividend: 40-60% of adjusted net profit and continuous growth Organic growth M&A Share buyback Adhere to finan
Slide 40: Transaction highlights
Transaction highlights Value-enhancing for all stakeholder groups EPS accretive Perfect 2,720 additional from strategic fit skilled employees closing on Creates Supports Strengthens strong value for our the Group’s our customers profitable growth mid-term targets 40 Bilfinger SE | Kepler Cheuvreux G
Slide 41: 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
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