Bilfinger Se · XETR:GBF
Bilfinger — Bilfinger Berger — Non-Deal Roadshow (October 2008)
46 slides from Bilfinger's roadshow presentation, Oct 8, 2008
Slide 1: The Multi Service Group: Dedicated to creating value
The Multi Service Group: Dedicated to creating value Roadsho Edinb Roadshow Edinburgh rgh October 8, 2008 Dr. Jürgen g M. Schneider,, CFO Andreas Müller, Head of Corporate Accounting, IR, M&A
Slide 2: Agenda
Agenda 1 Bilfinger 1. Bilfi B Berger G Group – Overview O i 2. Earnings enhancement in Construction 3. Profitable growth in Services 4. Adding value in Concessions 5 Dedicated to creating value - Outlook 5. 6. Financials 7. Appendix October 8, 2008 Bilfinger Berger AG Company Presentation Page 1
Slide 3: First half 2008: Burden in Civil, positive development in Services and Concessions
First half 2008: Burden in Civil, continuously positive development in Services and Concessions Very positive development in Services Successes in Concessions Earnings charge in Civil EBITA and net profit 2008 above prior prior-year year level October 8, 2008 Bilfinger Berger AG Company Pres
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 12,000 CAGR 13% 12,000 CAGR 19% 11,275 12,000 CAGR 14% 10,759 10 000 10,000 9,222 9,000 9,000 9,000 8,747 7,936 7,545 7,061 7 001 7,001 6,111 6,139 6,277 6,339
Slide 5: Strong growth rates in earnings and cash flow
Strong growth rates in earnings and cash flow EBITA Net Profit Operating Cash Flow 250 242 150 350 CAGR 45% CAGR 42% CAGR 31% 325 134 200 120 280 180 92 207 150 90 210 188 115 66 100 60 140 50 30 70 0 0 0 2005 2006 2007 2005 2006 2007 2005 2006 2007 In € million October 8, 2008 Bilfinger Berger AG C
Slide 6: Business portfolio well balanced
Business portfolio well balanced Expected output volume of € 10.3 billion in 2008 Building g and Civil Services Concessions Industrial 2008e: 06/2008: International International International International 57% 58% 39% 19% 42% 84% 89% 43% 42% 16% 11% Germany Germany Germany Germany Output volume Com
Slide 7: 69% of output volume in 2008 on international markets
69% of output volume in 2008 will be generated on international markets ÆInternational diversification balances business cycles in individual regions ÆForeign currency exposure very limited, predominantly natural hedges Australia Germany 27% 31% 2008e: €10.3bn Asia 4% Africa 5% America Rest of Europ
Slide 8: Agenda
Agenda 1 Bilfinger 1. Bilfi B Berger G Group – Overview O i 2. Earnings enhancement in Construction 3. Profitable growth in Services 4. Adding value in Concessions 5 Dedicated to creating value - Outlook 5. 6. Financials 7. Appendix October 8, 2008 Bilfinger Berger AG Company Presentation Page 7
Slide 9: Civil: leading player 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 g p Germany: Fragmented market structure, price level still unsatisfactory despite improving demand Route des Tamarins, La Réunion
Slide 10: Civil: Strong in technology and project management
Civil: Strong in technology and project management Highlights 6m 2008 Capacity utilization remains at a high level, as does order backlog Ongoing strong demand E18 ttransportt iinfrastructure f t t project j t in i N Norway: Carried out in a geologically and topographically difficult area Si i
Slide 11: Building and Industrial: Focus on private-sector clients
Building and Industrial: Focus on private private-sector sector clients in selected markets Markets Providing a comprehensive package of real- estate services Germany: Continues to benefit from growing number of PPP p projects j as well as demand in commercial construction City-Palais, Duisburg,
Slide 12: Building and Industrial: Strong synergies with Services and Concessions
Building and Industrial: Strong synergies with Services and Concessions segments Highlights 6m 2008 Cost situation on German market remains tense Particular attention paid to the procurement of materials and subcontractor services Selective order intake also in Australia Outlook 2008 Key figures
Slide 13: Agenda
Agenda 1 Bilfinger 1. Bilfi B Berger G Group – Overview O i 2. Earnings enhancement in Construction 3. Profitable growth in Services 4. Adding value in Concessions 5 Dedicated to creating value - Outlook 5. 6. Financials 7. Appendix October 8, 2008 Bilfinger Berger AG Company Presentation Page 12
Slide 14: Services segment: Industrial, Power and Facility Services
The Services segment comprises the businesses of Industrial Services, Power Services and Facility Services Civil Building and Services Concessions I d ti l Industrial 2008e: € 4.3bn 4 3b Industrial Power Facility Services Services Services 2008e: 2008e: 2008e: BB Industrial Services INT € 2.6bn € 75
Slide 15: Industrial Services with high degree of technical competence
Industrial Services with high degree of technical competence Australia Germany 15% Consul- 29% ting America A i Full Service Management 8% 2008e: Engineering €2.6bn Main Contracting Bundling of services Coordination of resources Rest of Project related Insulation Electrical Mecha- Instrumentation Sc
Slide 16: Power Services for the entire life cycle
Power Services for the entire life cycle Maintenance Turnarounds Asia 13% Conversion/ Modernization Africa Commissioning Germany Power 16% Services 2008e: 53% Rehabilitation, €750m extending Construction life-expectancy life expectancy Rest of Design Controlled Europe demolition 18% Output volume by
Slide 17: Facility Services go beyond classic Facility Management
Facility Services go beyond “classic” Facility Management service areas Asset and America Property 18% Management FM- Technical Equipment Consulting Facility Rest of Germany Services 2008e: Europe €950m 68% Technical Commercial 14% FM FM Infrastructural FM “classic” service areas Output volume by re
Slide 18: Dynamic development in all three divisions
Dynamic development in all three divisions Highlights 6m 2008 Output volume in I d ti lS Industrial Services: i €1 273 million €1,273 illi Power Services: €370 million Facility Services: €365 million Organic growth rates: 8% in output volume, 25% in EBITA Key figures Successful expansion of ac
Slide 19: Acquisitions in 2008 expand Services activities
Acquisitions in 2008 further expand our Services activities in Australia, Scandinavia and the US Acquisition of iPower Solutions and Clough Engineering & Maintenance: Expands p activities in the Australian energy gy sector Output volume: € 75 million T k Takeover off Norsk N kH Hydro’s d ’ iindu
Slide 20: Germany's largest provider of integrated facility services
Bilfinger Berger forms Germany’s Germany s largest provider of integrated facility services Acquisition of M+W Zander Facility Management: Output p volume: € 500 million Company works for well-known industrial groups and financial services providers such as IBM, EADS and Deutsche Bank Three qu
Slide 21: Agenda
Agenda 1 Bilfinger 1. Bilfi B Berger G Group – Overview O i 2. Earnings enhancement in Construction 3. Profitable growth in Services 4. Adding value in Concessions 5 Dedicated to creating value - Outlook 5. 6. Financials 7. Appendix October 8, 2008 Bilfinger Berger AG Company Presentation Page 20
Slide 22: Concessions: Focus on stable markets
Concessions: Focus on markets with stable political and economic conditions Markets Kicking Horse Pass, Canada Only countries with a stable political and economical environment Sector focus: Transport infrastructure with no or limited volume risk (roads, bridges, tunnels) Social infrastructu
Slide 23: Concessions: Continuous growth of portfolio
Concessions: Continuous growth of portfolio Highlights Competitive edge against pure financial investors is the know-how covering the entire value-chain Expansion p of concessions p portfolio accelerated Significant increase in value of portfolio As of today: 2 projects in portfolio 24 f €29
Slide 24: Portfolio value further increased
Portfolio value further increased Additional upside potential if lower discount rate is applied Æ End of June 2008: Increase of NPV to € 152 million at a discount rate of 9 9.7% 7% which compares to a book value of € 96 million 250 235 202 200 175 152 150 133 116 100 50 0 -3% -2% -1% Existing +1% +2
Slide 25: Agenda
Agenda 1 Bilfinger 1. Bilfi B Berger G Group – Overview O i 2. Earnings enhancement in Construction 3. Profitable growth in Services 4. Adding value in Concessions 5 Dedicated to creating value - Outlook 5. 6. Financials 7. Appendix October 8, 2008 Bilfinger Berger AG Company Presentation Page 24
Slide 26: Outlook
Outlook Full-year Full year 2008: Growth in output volume to more than €10 billion Increase in EBITA to approximately €260 million and in net profit to approximately €140 million Return on capital employed (ROCE) will significantly exceed cost of capital of 10.5% Goals for 2009 confirmed:
Slide 27: Bilfinger Berger – Dedicated to creating value
Bilfinger Berger – Dedicated to creating value Value driver GROWTH Our services business will continue to enjoy dynamic growth, both organic and through acquisitions. We will continue our involvement in high-margin concession projects and steadily expand this business. Value driver PROFITABILITY
Slide 28: Agenda
Agenda 1 Bilfinger 1. Bilfi B Berger G Group – Overview O i 2. Earnings enhancement in Construction 3. Profitable growth in Services 4. Adding value in Concessions 5 Dedicated to creating value - Outlook 5. 6. Financials 7. Appendix October 8, 2008 Bilfinger Berger AG Company Presentation Page 27
Slide 29: Volume and contract overview 6m 2008 by business segment
Volume and contract overview 6m 2008 by business segment O t t volume Output l Od Orders received i d O d backlog Order b kl in € million 6m 2007 6m 2008 Change 6m 2007 6m 2008 Change 06/2007 06/2008 Change Civil 1,738 1,974 14% 2,429 1,900 -22% 5,318 5,468 3% Building and Industrial 920 986 7% 1,22
Slide 30: Volume and contract overview 2007 by business segment
Volume and contract overview 2007 by business segment Output volume Orders received Order backlog in € million 2006 2007 Change 2006 2007 Change 2006 2007 Change Civil 2,973 3,647 23% 4,580 4,528 -1% 4,706 5,507 17% Building and Industrial 2,069 1,965 -5% 2,053 2,596 26% 1,754 2,385 36% Services 2 8
Slide 31: EBITA margin by segment
EBITA margin by segment FY 2006 FY 2007 Target 2009 in € million Output Volume EBITA Margin Output Volume EBITA Margin Margin Civil 2,973 43 1.4% 3,647 58 1.6% 2.5 to 3% Building and Industrial 2,069 22 1.1% 1,965 24 1.2% 1.5 to 2% Services 2,881 123 4.3% 3,606 180 5.0% >5% Group 7,936 180 2.3% 9,22
Slide 32: Consolidated income statement 6m 2008
Consolidated income statement 6m 2008 in € million 6m 2007 6m 2008 FY 2007 EBITA 78 60 242 Amortization of intangibles from acquisitions -6 6 -7 7 -13 13 EBIT 72 53 229 Net interest result -1 1 -1 1 -1 1 EBT 71 52 228 I Income taxes t -28 28 -14 14 -88 88 Minority interest -2 -2 -6 Net profit 41 36
Slide 33: Consolidated income statement 6m 2008 Net interest result
Consolidated income statement 6m 2008 Net interest result in € million 6m 2007 6m 2008 FY 2007 Interest income 14 16 32 Interest expense -8 -6 -15 Gain on disposal of securities 0 0 1 Current interest result 6 10 18 Interest expense from additions to pension provisions -6 -6 -13 Interest income from
Slide 34: Balance sheet as of June 30, 2008
Balance sheet as of June 30 30, 2008 Assets June 30 30, 2008 June 30 30, 2008 Equity and liabilities In € million In € million 6,359 +249 +249 6,359 Cash and marketable securities 556 -240 +216 +232 3,163 Current liabilities 1) Current assets 2,416 +79 586 Non-current provisions and liabilities 2) +
Slide 35: Excess cash position fully invested by end of June 2008
Excess cash position fully invested by end of June 2008 Since July, acquisitions of M+W Zander Facility Management and Tepsco have led to a net debt position Dec 31 Mar 31 Jun 30 in € million 2007 2008 2008 Cash & marketable securities 796 697 556 Financial liabilities (excluding non-recourse) -111
Slide 36: Cash flow statement 6m 2008
Cash flow statement 6m 2008 in € million 6m 2007 6m 2008 FY 2007 Cash earnings 98 71 289 Change in working capital -152 -44 53 Gains on disposals of non-current assets -4 -17 -17 Cash flow from operating activities -58 10 325 Net capital expenditure on property, plant and equipment / Intangibles -67
Slide 37: ROCE calculation 2007
ROCE calculation 2007 Capital employed Return ROCE WACC Value added in € million in € million in % in % in € million 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 Civil 375 405 54 75 14.5 18.6 13.0 13.0 5 23 Building and Industrial 133 146 40 38 29 6 29.6 26 1 26.1 13 0 13.0 13 0 13.0 22 19 Serv
Slide 38: Five year overview
Five year overview Five-year i € million in illi 2003 2004 2005 2006 2007 Output volume 5,586 6,111 7,061 7,936 9,222 Orders received 5,605 6,139 7,545 10,000 11,275 Order backlog 6,277 6,339 7,001 8,747 10,759 EBITA 101 81 115 180 242 EBT 86 91 115 173 228 Net profit 50 51 66 92 134 Cash flow from
Slide 39: Agenda
Agenda 1 Bilfinger 1. Bilfi B Berger G Group – Overview O i 2. Earnings enhancement in Construction 3. Profitable growth in Services 4. Adding value in Concessions 5 Dedicated to creating value - Outlook 5. 6. Financials 7. Appendix October 8, 2008 Bilfinger Berger AG Company Presentation Page 38
Slide 40: Concessions portfolio as of 06/30/2008
Concessions portfolio as of 06/30/2008 Investment Equity Method of con- Percentage held 1) Status Concession period volume committed solidation € 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 still under construction or in ramp-up
Most projects are still under construction or in ramp ramp-up up Maturity of project portfolio as of September 17, 2008 Preferred P f d Construction Ramp-up Yield Maturity bidder Present value Accumulated cash flows (nominal) 0 projects 13 projects 1 projects 10 projects Time A1,, GER Royal y Women'
Slide 42: Directors' valuation of Concessions portfolio
Directors’ valuation of Concessions portfolio Directors 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 long term Only O l projects j where h “fi “financial i l close” l ”hhas treasu
Slide 43: Share buyback program completed end of April 2008
Share buyback program completed end of April 2008 Share buyback Shareholder structure as of 06/30/2008 Duration of program: 100% free float February 19 to April 29, 2008 High proportion of institutional investors Volume: €100 million Very international shareholder base 1,884,000 shares 5.0
Slide 44: Financial calendar and share facts
Financial calendar and share facts Nov. 10, 2008 Interim report Q3 2008 52 week high / low: € 65.65 / € 34.15 (as at Oct 3, 2008) Feb. 11, 2009 Preliminary figures 2008 Closing price Oct 3, 2008 € 35.43 Market cap:1) € 1.3 bn (as at Oct 3, 2008) March 17, 2009 Full-year figures 2008 Shares out
Slide 45: Other investor information
Other investor information For further information please contact: in € per share 2003 2004 2005 2006 2007 Andreas Müller Bettina Schneider Earnings per share 1.37 1.39 1.80 2.48 3.60 Corporate Accounting Investor Relations Investor Relations Mergers & Acquisitions Dividend 0.65 1.00 1.00 1.25 1.80
Slide 46: Disclaimer
Disclaimer This presentation has been produced for support of oral information purposes only and contains forward-looking forward looking statements which involve risks and uncertainties. uncertainties Forward Forward-looking looking statements are statements that are not historical facts, including