Bilfinger SE · XETR:GBF
Bilfinger — Bilfinger Berger — Non-Deal Roadshow (February 2011)
44 slides from Bilfinger's roadshow presentation, Feb 23, 2011
Slide 1: Bilfinger Berger: Further transformation picking up pace
Bilfinger Berger: Further transformation picking up pace Roadshow Munich, February 23, 2011 Andreas Müller, Head of Corporate Accounting and Investor Relations Bettina Schneider, Senior Manager Investor Relations
Slide 2: Agenda
Agenda ge da 1. Bilfinger Berger – Overview 2. Current business situation 3. Outlook 4. Financials 5. Appendix February 23, 2011 Bilfinger Berger SE Company Presentation Page 1
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
Slide 4: International business with core area Europe
International te at o a bus business ess with t co core eaarea ea Europe u ope Asia 6% Africa 8% Germany America 42% 7% 2010: €8.1bn Rest of Europe 37% Continuing Operations February 23, 2011 Bilfinger Berger SE Company Presentation Page 3
Slide 5: Focus on services reduces dependency on economic cycles
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
Slide 6: Industrial Services
Industrial dust a SeServices: ces Majority of business with stable revenue and earnings stream Business activities Customer structure diversified Maintenance, inspection, repairs, improvements, modifications Oil and Gas 30% E/I&C (Electrical, Instrumentation and Control) engineering, mechanical syst
Slide 7: Power Services
Power o e Se Services: ces Supported by mega-trend “Demand for energy” Business activities Customer structure concentrated Life-cycle services for fossil fuel and nuclear power plants 85% Utilities Maintenance, inspection, repair, rehabilitation 15% Industry Boilers: Engineering, construction, conve
Slide 8: Building and Facility Services
Building u d ga and d Facility ac ty SeServices: ces One-stop shopping for real-estate customer Business activities Customer structure diversified Customized services for real-estate properties along the entire lifecycle 30% Public clients Integrated facility management with focus on technical facil
Slide 9: Construction: Major transport infrastructure player
Co st uct o Construction: Major transport infrastructure player with focus on Europe Business activities Customer structure diversified Design and construction of transport infrastructure projects 90% Public clients 10% Private clients Contract structure Business drivers 100% Projects Public spendin
Slide 10: Concessions
Co cess o s Concessions: Only active in stable legal, political and economical environment Business activities Customer structure diversified Delivery and operation of transport and social infrastructure projects 100% Public clients as a private partner to the public sector Contract structure Busine
Slide 11: Further transformation picking up pace
Further u t e ttransformation a s o at o p picking c g up pace Limitation of volume in construction with clear regional focus and stringent risk profile Agreement for sale of Valemus Australia on December 21, 2010 Net proceeds of approx. AUD 970 million Closing expected for March 2011 Services b
Slide 12: Acquisition strategy
Acquisition cqu s t o st strategy ategy Financial scope of at least € 1 billion Continuous market screening for potential acquisitions in services All three services segments are target areas, with priority on Industrial and Power Services Industrial Services: regional expansion including em
Slide 13: Agenda
Agenda ge da 1. Bilfinger Berger – Overview 2. Current business situation 3. Outlook 4. Financials 5. Appendix February 23, 2011 Bilfinger Berger SE Company Presentation Page 12
Slide 14: FY 2010: Highlights
FY 2010: 0 0 Highlights g g ts Earnings doubled Strong operating cash flow in Q4 Significantly higher dividend Considerable financial scope for corporate development Positive outlook for FY 2011 February 23, 2011 Bilfinger Berger SE Company Presentation Page 13
Slide 15: FY 2010: 80% of Group output volume in services business
FY 2010: 80% of Group p output p volume in services business Output Volume Orders Received Order Backlog 12m y-o-y: +5% 12m y-o-y: +5% December y-o-y: +3% 9,000 9,000 9,000 8,585 8,497 8,396 8,362 8,284 8,123 8,048 8,029 7,727 7,696 7,709 7,069 6,000 6,000 6,000 3,000 3,000 3,000 0 0 0 2007 2008 200
Slide 16: FY 2010: Earnings doubled
FY 2010: Earnings g doubled EBIT EBT Net Profit 12m y-o-y: +98% 12m y-o-y: +121% 12m y-o-y: +103% 400 400 400 343 300 300 300 284 303 79 Discontinued Operations 200 200 200 173 134 140 140 157 157 144 132 135 Continuing 60 100 100 100 63 78 205 Operations 71 80 62 0 0 0 2007 2008 2009 2010 2007 2008
Slide 17: Industrial Services: Upswing in the second half of 2010
Industrial dust a SeServices: ces Ups Upswing g in tthe e seco second d half a o of 2010 0 0 Markets and highlights Other regions Renewed increase in earnings and output 1% volume due to acquisition of MCE America Germany 10% 28% Upswing in the second half of the year offset 2010: 2010 the after
Slide 18: Power Services: Segment with highest EBIT margin
Power o e Se Services: ces Seg Segment e t with t highest g est EBIT margin ag Markets and highlights Other regions Organic development: Asia 8% 1% -1% in output volume, +1% in EBIT Germany Africa 52% g EBIT margin Strong g at 7.5% ((FY 2009: 7.2%)) 15%% 2010: 2010 Strong increase in orders re
Slide 19: Building and Facility Services: EBIT margin has reached target range
Building u d ga and d Facility ac ty SeServices: ces EBIT margin a g has as reached eac ed ta target get range a ge Markets and highlights Other Building construction volume now at regions Africa 1% targeted level 20% EBIT margin of 3.4% 3 4% has reached America 2010: 2010 Germany 8% €2.3bn 59%
Slide 20: Construction: Turnaround achieved
Construction: Co st uct o Turnaround u a ou d ac achieved e ed Markets and highlights Other regions Volume reduced as planned Asia 1% 20% Germany EBIT significantly improved 35% America 2010: 2010 Target size and margin 4% €1.7bn to be reached by 2012 Rest of Europe 40% Output volume by region
Slide 21: Concessions: Active portfolio management
Concessions: Co cess o s Active ct e po portfolio t o o management a age e t Markets and highlights Australia Germanyy Three new projects in 2010 19% 18% Sale of equity interests in four concession projects for approx. €70 million, 12/2010: Canada €358 €358m UK completed in Q4 28% 21% Addition
Slide 22: Agenda
Agenda ge da 1. Bilfinger Berger – Overview 2. Current business situation 3. Outlook 4. Financials 5. Appendix February 23, 2011 Bilfinger Berger SE Company Presentation Page 21
Slide 23: Outlook FY 2011
Outlook Out oo FY 2011 0 Output volume and EBIT at least on prior-year level (FY 2010: € 8.1 billion and € 343 million) Substantial increase in net profit due to capital gain from sale of Valemus Australia of approximately € 160 million (FY 2010: € 284 million) February 23, 2011 Bilfinger Berger
Slide 24: Key strategic objectives
Key ey strategic st ateg c object objectives es Expansion in services Limitation of volume in Further development of construction Concessions Full service provider in Industrial, Limitation of volume Investments in selected projects Power as well as in Building and Facility Services Sale of
Slide 25: Agenda
Agenda ge da 1. Bilfinger Berger – Overview 2. Current business situation 3. Outlook 4. Financials 5. Appendix February 23, 2011 Bilfinger Berger SE Company Presentation Page 24
Slide 26: Volume and contract overview 2010
Volume ou ea and d co contract t act o overview e e 2010 0 0 Continuing Operations by business segment Output volume Orders received Order backlog in € million 2009 2010 Change 2009 2010 Change 2009 2010 Change Industrial Services 2,249 2,932 30% 2,402 3,253 35% 2,040 2,601 28% Power Services 1,017
Slide 27: EBIT margin surpassed the 4% target
EBIT margin surpassed the 4% target in € million FY 2009 FY 2010 Output p volume 7,727 , 8,123 , EBIT 173 343 EBIT margin 2.2% 4.2% Net interest result -38 -40 EBT 135 303 Income taxes -52 -95 Earnings after taxes from continuing operations 83 208 g after taxes from discontinued operations Earnings
Slide 28: Interest result below prior-year level
Interest te est result esu t below be o pprior-year o yea level e e mainly a y due to higher net interest from pensions in € million FY 2009 FY 2010 Interest income 13 12 Interest expense -25 -25 Current Cu e t interest te est result esu t -12 -13 3 Net interest from pensions -13 -16 Interest expens
Slide 29: Valuation net debt of continuing operations
Valuation a uat o net et debt of o continuing co t u g operations ope at o s currently cu e t y at - € €250 50 million o Dec 31 Mar 31 June 30 Sept p 30 Dec 31 i € million in illi 2009 2010 2010 2010 2010 Cash and cash equivalents 635 410 341 375 537 Financial debt (excluding non-recourse) -287 -285
Slide 30: Lower operating cash flow due to structural change in working capital
Lower operating p g cash flow due to structural change g in working g capital p in € million FY 2009 FY 2010 Cash earnings from continuing operations 193 371 Change in working capital 177 -85 Gains on disposals of non-current assets -5 -41 Cash flo flow from operating activities acti ities of contin
Slide 31: FY 2010: Changes to pro-forma balance sheet
FY 2010: 0 0 CChanges a ges to o p pro-forma o o a babalance a ce ssheet ee as o of Dec. ec 331,, 2009 009 Assets Dec 31, 2010 Dec 31, 2010 Equity and liabilities In € million In € million 7,937 -4 -4 7,937 Liabilities available Assets available +149 703 1,050 +289 for sale (Valemus) for sale (Valem
Slide 32: FY 2010: Recourse debt structure
FY 2010: 0 0 Recourse ecou se debt structure st uctu e €250 million promissory note loan with approx. 6% interest rate p.a. Æ valid through 2011 (€84 million) and 2013 (€166 million) €21 million financial leases €1 million short-term borrowings February 23, 2011 Bilfinger Berger SE Company Pre
Slide 33: Value added increased significantly
Value a ue added increased c eased significantly s g ca t y Capital employed Return ROCE WACC Value added in € million in € million in % in % in € million 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 Industrial Services 705 1 005 1,005 132 161 18 7 18.7 16 0 16.0 90 9.0 95 9.5 68 65 Power Servi
Slide 34: Five-year overview
Five-year e yea ooverview e e 2009 in € million 2006 2007 2008 2009 2010 cont. Output volume 7 936 7,936 9 222 9,222 10 742 10,742 10 403 10,403 7 727 7,727 8 123 8,123 Orders received 10,000 11,275 10,314 11,129 7,696 8,048 Order backlog 8,747 10,759 10,649 11,704 8,362 8,585 EBIT 170 229 298 250 1
Slide 35: Agenda
Agenda ge da 1. Bilfinger Berger – Overview 2. Current business situation 3. Outlook 4. Financials 5. Appendix February 23, 2011 Bilfinger Berger SE Company Presentation Page 34
Slide 36: Concessions portfolio: Transport infrastructure
Co cess o s po Concessions portfolio t o o as o of December ece be 331,, 2010 0 0 Transport infrastructure Investm ent Percentage Equity Method of con- 1) Status Concession period volum l e h ld held com m itted itt d solidation lid ti € million % € million Transport Infrastructure - Herrentunnel Lü
Slide 37: Concessions portfolio: Social infrastructure
Co cess o s po Concessions portfolio t o o as oof December ece be 3 31,, 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
Slide 38: Majority of projects still under construction or in ramp-up
Majority ajo ty of o projects p ojects still st under u de construction co st uct o oor in ramp-up a p up Maturity of project portfolio as of December 31, 2010 Construction Ramp-up p p Yield Maturityy Present value Accumulated cash flows (nominal) 10 projects 2 projects 17 projects Time BAB A1, GER
Slide 39: 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 Æ End of December 2010: NPV of € 268 million at a discount rate of 9.9% significantly above b k value book l off € 160 million illi 400 369 314 300 268 229 196 200 100 0 +2% 2%
Slide 40: Shareholder structure
Shareholder structure Treasury Stock Shareholder structure as of 12/31/2010 Duration of program: 100% free float February 19 to April 29, 2008 High proportion of institutional investors Volume: V l €100 million illi International shareholder base 1,884,000 shares Average price: € 53.07 Bil
Slide 41: Dividend development
Dividend development p €3.00 €2.50 €2.50 €2.00 €2.00 €1.85 €1.66 €1.50 €1.15 €1.00 €0.92 €0.92 €0.60 €0.51 €0.51 €0.50 €0.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 – 2008 after rights issue adjustment 2002 and 2003 excluding bonus dividend February 23, 2011 Bilfinger Berger SE Compan
Slide 42: Financial calendar and share facts
Financial calendar and share facts March 30, 2011 Annual press conference 52 week high / low: € 65.62 / € 40.75 (as at Feb. 18, 2011) May 12, 2011 Interim Report Q1 2011 Closing price Feb. 18, 2011 € 62.99 1) Market cap: € 2.9 bn (as at Feb. 18, 2011) May M 31, 31 2011 A Annual lGGenerall M Me
Slide 43: Other investor information
Other Ot e investor esto information o at o in € per share / after rights issue adjustment 2006 2007 2008 2009 2010 For further information please contact: Earnings per share 2.29 3.32 5.18 3.79 6.43 Andreas Müller Bettina Schneider Dividend 1.15 1.66 1.85 2.00 2.50 Corporate C t Accounting A ti I I
Slide 44: 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