Bilfinger Se · XETR:GBF

Bilfinger — Bilfinger Berger — Non-Deal Roadshow (September 2010)

43 slides from Bilfinger's roadshow presentation, Sep 27, 2010

  1. Slide 1: Bilfinger Berger: Continuing transformation into Services

    Bilfinger Berger: Continuing transformation into Services Roadshow Canada / New York, September p 27 to 28, 2010 Joachim Müller, CFO Andreas Müller, Head of Corporate Accounting and Investor Relations

  2. Slide 2: Agenda

    Agenda ge da 1. Bilfinger Berger – Continuing transformation into Services 2. Highlights 6m 2010 3. Outlook 4. Financials 5. Appendix September 27-28, 2010 Bilfinger Berger AG Company Presentation Page 1

  3. Slide 3: The Multi Service Group - Highlights

    The e Multi u t Se Service ce G Group oup - Highlights g g ts  European market leader in Industrial Services for the process industry  Strong player in Power Services, European market leader for high-pressure piping  German market leader for integrated facility management One of the few providing

  4. Slide 4: Continuing transformation into Services

    Continuing Co t u g transformation t a s o at o into to Se Services ces  Significant g reduction of volume in construction with a stronger g regional g focus and improved risk profile  Planned sale of Bilfinger Berger Australia, IPO postponed as a result of the negative developments on the capital

  5. Slide 5: International business with core area Europe

    International te at o a bus business ess with t co core eaarea ea Europe u ope Asia 7% Africa 8% Germany America 43% 7% 2010e: €8.0bn Rest of Europe 35% Continuing Operations September 27-28, 2010 Bilfinger Berger AG Company Presentation Page 4

  6. Slide 6: Focus on services reduces dependency on economic cycles and major projects

    Focus ocus o on se services ces reduces educes depe dependency de cy oon economic cycles and on individual major projects Building and Industrial Power F ili Facility C Construction C Concessions Services Services Services  PPP  Process Industry  Utilities  Real Estate  Transport Social and inf

  7. Slide 7: Majority of business with stable revenue and earnings streams

    Majority ajo ty of o business bus ess with t stable stab e revenue e e ue a and d ea earnings gs st stream ea Contract structure Customer structure Business activities Industrial Services diversified 85% Maintenance Oil and Gas 30% Maintenance, inspection, repairs, improvements, modifications 15% Se

  8. Slide 8: Agenda

    Agenda ge da 1. Bilfinger Berger – Continuing transformation into Services 2. Highlights 6m 2010 3. Outlook 4. Financials 5. Appendix September 27-28, 2010 Bilfinger Berger AG Company Presentation Page 7

  9. Slide 9: 6m 2010: Successful first half of 2010

    6m 2010: 6 0 0  Successful first half of 2010  Earnings more than doubled  Jump in earnings also anticipated for full year  Quality: Experts give positive assessment September 27-28, 2010 Bilfinger Berger AG Company Presentation Page 8

  10. Slide 10: 6m 2010: Stable business volume

    6m 2010: Stable business volume – g growth in services volume is currently offset by reduction in construction volume Output Volume Orders Received Order Backlog 6m y-o-y: +1% 6m y-o-y: 0% June y-o-y: +7% 8,872 9,000 9,000 9,000 8,497 8,396 8,362 8,307 8,284 8,029 7,727 7,696 7,709 7,069 6,000 6,000

  11. Slide 11: 6m 2010: All segments contribute to significantly higher earnings

    6m 2010: 6 0 0 All seg segments e ts co contribute t bute to ssignificantly g ca t y higher g e ea earnings gs EBIT EBT Net Profit Q1 y-o-y: +111% Q1 y-o-y: +149% Q1 y-o-y: +82% 250 250 250 202 200 200 200 177 173 157 78 150 150 144 150 135 135 117 60 100 100 100 63 41 Discontinued Operations 64 Con

  12. Slide 12: Industrial Services: Improved business development

    Industrial dust a SeServices: ces Improved p o ed bus business ess de development e op e t for o cclients e ts in cchemical e ca and oil refinery industries should support second half of the year Markets and highlights Other regions  Double-digit growth in volume and EBIT America 1% 11% Germany due

  13. Slide 13: Power Services: Very high level of EBIT

    Power o e Se Services: ces Very e y high g level e e oof EBIT Markets and highlights Other regions  Organic development: Asia 11% 1% Germany -2% in output volume, +18% in EBIT 51% Africa  EBIT margin at 7.6% 7 6% (6m 2009: 6 6.5%) 5%) 13% 2010e: 2010 €1.1bn  Decline in orders received reflects th

  14. Slide 14: Building and Facility Services: Positive development of earnings

    Building u d ga and d Facility ac ty SeServices: ces Positive os t e de development e op e t o of ea earnings gs Markets and highlights Other i regions  Facility Services: Africa 2% Outsourcing trend continues 20% America 2010e: 2010 Germany G  Building: 8% 60% €2.3bn Volume reduced as planned Res

  15. Slide 15: Construction: Stable demand in our core markets

    Construction: Co st uct o Stable Stab e demand de a d in ou our co core e markets a ets Markets and highlights Asia  Ongoing reduction in volume 23% Germany 35%  g Significant improvement p in earnings g 2010e: 2010 America 4% €1.7bn  Cologne subway project more than 90% completed Rest of Europe

  16. Slide 16: Civil engineering: Experts give positive assessment

    Civil e C engineering: g ee g Experts pe ts g give e pos positive t e assessment assess e t  Both groups of experts – commissioned by the Executive Board in March 2010 to review the structural integrity and quality assurance of civil engineering projects – have completed their work  Results provid

  17. Slide 17: Concessions: Australia and Canada currently our most dynamic markets

    Concessions: Co cess o s Australia ust a a aand d Ca Canada ada currently cu e t y ou our most ost dy dynamic a c markets a ets Markets and highlights Australia Germany 18% 17%  Two new major projects in Australia  One new Canadian project was closed in July: 06/2010: Women’s Women s College Hospi

  18. Slide 18: Discontinued Operations: Valemus Australia

    Discontinued sco t ued Ope Operations: at o s Valemus a e us Australia ust a a Markets and highlights  Growth in output volume and orders received  g remain at a high Earnings g level  IPO-related costs of € 7 million digested  High level of investment in transport infrastructure 6m 6m Outlook 2

  19. Slide 19: Agenda

    Agenda ge da 1. Bilfinger Berger – Continuing transformation into Services 2. Highlights 6m 2010 3. Outlook 4. Financials 5. Appendix September 27-28, 2010 Bilfinger Berger AG Company Presentation Page 18

  20. Slide 20: Outlook

    Out oo Outlook  We expect for FY 2010: Output volume of approx. € 8.0 billion (2009: € 7.7 billion) EBIT of at least € 300 million (2009: € 173 million) Net profit including discontinued operations of at least € 250 million (2009: € 140 million)  Medium-term: Group EBIT margin of at least 4% Septe

  21. Slide 21: Key strategic objectives

    Key ey strategic st ateg c object objectives es Further expansion in services Limitation of volume and margin Further development of improvement in construction Concessions  Full service provider in Industrial,  Limitation of volume  Investments in selected projects Power as well as in Building a

  22. Slide 22: Agenda

    Agenda ge da 1. Bilfinger Berger – Continuing transformation into Services 2. Highlights 6m 2010 3. Outlook 4. Financials 5. Appendix September 27-28, 2010 Bilfinger Berger AG Company Presentation Page 21

  23. Slide 23: Volume and contract overview 6m 2010

    Volume ou ea and d co contract t act o overview e e 6 6m 2010 0 0 Continuing Operations by business segment Output volume Orders received Order backlog in € million 6m 2009 6m 2010 Change g 6m 2009 6m 2010 Change g 06/2009 06/2010 Change g Industrial Services 1,131 1,383 22% 1,066 1,529 43% 1,516 2,

  24. Slide 24: Volume and contract overview 2009

    Volume ou ea and d co contract t act o overview e e 2009 009 Continuing Operations by business segment Output volume Orders received Order backlog in € million 2008 2009 Change g 2008 2009 Change g 2008 2009 Change g Industrial Services 2,406 2,249 -7% 2,490 2,402 -4% 1,580 2,040 29% Power Services

  25. Slide 25: 6m 2010: EBIT margin increased significantly from 1.7% to 3.5%

    6m 2010: EBIT margin increased significantly from 1.7% to 3.5% in € million 6m 2009 6m 2010 FY 2009 Output volume 3,768 3,812 7,727 EBIT 64 135 173 EBIT margin i 1 7% 1.7% 3 5% 3.5% 2 2% 2.2% Net interest result -17 -18 -38 EBT 47 117 135 Income taxes -20 -40 -52 Earnings after taxes from continuing

  26. Slide 26: 6m 2010: Only minor changes in balance sheet

    6m 2010: 6 0 0 OOnly y minor o cchanges a ges in ba balance a ce ssheet ee Changes to pro-forma balance sheet as of December 31, 2009 Assets June 30, 2010 June 30, 2010 Equity and liabilities In € million In € million 8,536 +595 +595 8,536 Assets available Liabilities available 916 +155 +89 643 for

  27. Slide 27: 6m 2010: Valuation net debt of continuing operations

    6 2010: 6m 0 0 Valuation net debt of continuing operations currently at - €300 million Dec 31 Mar 31 June 30 in € million 2009 2010 2010 Cash and cash equivalents 635 410 341 Financial debt (excluding non-recourse) -287 -285 -425 Inter-company loan BB Australia -65 -68 -121 Pension provisions -287 -

  28. Slide 28: 6m 2010: Recourse debt structure

    6m 2010: 6 0 0 Recourse ecou se debt structure st uctu e  €250 million promissory note loan with approx. 6% interest rate p.a.  valid through 2011 (€84 million) and 2013 (€166 million)  €20 million financial leases  €15 million short-term borrowings  €140 million drawn from syndicated loan faci

  29. Slide 29: 6m 2010: Investments in financial assets relate to concessions

    6m 2010: Investments in financial assets relate to concessions as well as to step acquisitions and earn-out earn out payments in € million 6m 2009 6m 2010 FY 2009 Cash earnings from continuing operations 85 150 193 Change in working capital -267 -359 177 Gains on disposals of non-current assets -5 -

  30. Slide 30: 6m 2010: Increase in working capital

    6 2010: 6m 0 0 Increase c ease in working o g cap capital ta due to structural changes and intra-year shift in € million Dec 31 2009 June 30 2010 Net working g capital p -1,039 , -651 Thereof liabilities from percentage of completion (prepayments) 455 362 Net working capital as of annual output volu

  31. Slide 31: Five-year overview including discontinued operations

    Five-year e yea ooverview e e – including c ud g ddiscontinued sco t ued ope operations at o s in € million 2005 2006 2007 2008 2009 Output p volume 7,061 7,936 9,222 10,742 10,403 Orders received 7,545 10,000 11,275 10,314 11,129 Order backlog 7,001 8,747 10,759 10,649 11,704 EBIT 110 170 229 298 2

  32. Slide 32: Agenda

    Agenda ge da 1. Bilfinger Berger – Continuing transformation into Services 2. Highlights 6m 2010 3. Outlook 4. Financials 5. Appendix September 27-28, 2010 Bilfinger Berger AG Company Presentation Page 31

  33. Slide 33: Competitive landscape

    Competitive Co pet t e landscape a dscape Industrial Services Power Services Building and Facility Services Construction Concessions Facility Services Germany Contractor-led organizations: Hertel Alstom Dussmann ACS Acciona Kaefer Ansaldo Hochtief Facility Management Balfour Beatty ACS Stork Austria

  34. Slide 34: Concessions portfolio: Transport infrastructure

    Co cess o s po Concessions portfolio t o o as o of 06/30/ 06/30/2010 0 0 Transport infrastructure Investm ent Percentage Equity Method of con- con Status Concession period volum e held com m itted solidation 1) € million % € million Transport Infrastructure - Herrentunnel Lübeck, Germanyy 176 50 - 2

  35. Slide 35: Concessions portfolio: Social infrastructure

    Co cess o s po Concessions portfolio t o o as o of 06/30/ 06/30/2010 0 0 Social infrastructure Investm ent Percentage Equity Method of con- Status Concession period volum e held com m itted solidation 1) € million % € million Social Infrastructure - Liverpool & Sefton Clinics, Great Britain 77 27 2

  36. Slide 36: Majority of projects still under construction or in ramp-up

    Majority ajo ty oof p projects ojects is s st still u under de co construction st uct o oor in ramp-up a p up Maturity of project portfolio as of June 30, 2010 Construction Ramp-up p p Yield Maturityy Present value Accumulated cash flows (nominal) 9 projects 8 projects 11 projects Time BAB A1, GER B

  37. Slide 37: Directors' valuation of Concessions portfolio

    Directors’ ecto s valuation a uat o oof Co Concessions cess o s po portfolio to o 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 treasuryy

  38. Slide 38: Portfolio value further increased

    Portfolio o t o o value a ue further u t e increased c eased Additional upside potential if lower discount rate is applied  End of June 2010: NPV of € 265 million at a discount rate of 10.0% significantly above b k value book l off € 167 million illi 400 367 311 300 265 225 200 192 100 0 +2% +1% Ex

  39. Slide 39: Share buyback and shareholder structure

    Share buyback y and shareholder structure Share buyback Shareholder structure as of 06/30/2010  Duration of program:  100% free float February 19 to April 29, 2008  High proportion of institutional investors  Volume: V l €100 million illi  Very international shareholder base 1,884,000 shares Bi

  40. Slide 40: Dividend development

    Dividend development p €2 50 €2.50 €2.00 €2.00 €1 85 €1.85 €1.66 €1.50 €1.15 €1.00 €0.92 €0.92 €0.60 €0.51 €0.51 €0.50 €0.38 €0.38 €0.00 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2000 – 2008 after rights issue adjustment 2002 and 2003 excluding bonus dividend September 27-28, 2010 Bilfi

  41. Slide 41: Financial calendar and share facts

    Financial calendar and share facts  Nov. 10, 2010 Interim Report Q3 2010 52 week high / low: € 58.80 / € 40.75 (as at Sept. 21, 2010)  Dec. 02, 2010 Capital Markets Day 2010 Closing price Sept. 21, 2010 € 50.74 1) Market cap: € 2.3 bn (as at Sept. 21, 2010)  Feb. F b 14, 14 2011 P li i Preliminar

  42. Slide 42: Other investor information

    Other Ot e investor esto information o at o in € per share / after rights issue adjustment 2005 2006 2007 2008 2009 For further information please contact: Earnings per share 1.66 2.29 3.32 5.18 3.79 Andreas Müller Bettina Schneider Dividend 0 92 0.92 1 15 1.15 1 66 1.66 1 85 1.85 2 00 2.00 Corporat

  43. Slide 43: Disclaimer

    Disclaimer sc a e 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 expec

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