Bilfinger Se · XETR:GBF
Bilfinger — Bilfinger Berger — Non-Deal Roadshow (March 2010)
40 slides from Bilfinger's roadshow presentation, Mar 17, 2010
Slide 1: The Multi Service Group: Dedicated to creating value
The Multi Service Group: Dedicated to creating value Roadshow Paris, March 17, 2010 Joachim Müller, CFO Bettina Schneider, Senior Manager Investor Relations
Slide 2: 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
Slide 3: Agenda
Agenda ge da 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights 2009 3. Outlook 4. Financials 5. Appendix March 11, 2010 Bilfinger Berger AG Company Presentation Page 2
Slide 4: Highlights 2009
Highlights g g ts 2009 009 Output volume close to prior year level Sound order situation Order backlog up 10% Earnings higher than expected EBIT and net p profit reach adjusted j p prior-year y level Operating cash-flow again at high level Increased dividend distribution proposed Outlook
Slide 5: Reduction of construction business
Reduction educt o of o construction co st uct o bus business ess Sale of Bilfinger Berger Australia Selling process initiated for Bilfinger Berger Australia, preparation of IPO Bilfinger Berger Australia in FY 2009: Output volume of approx approx. €2.7 €2 7 billion EBIT of €77 million, net profi
Slide 6: 2009: Sound volume and order development
2009: Sound volume and order development p Output Volume Orders Received Order Backlog 5yr-CAGR 10% 5yr-CAGR 10% 5yr-CAGR 14% 12,000 12,000 12,000 11,704 11,275 11,129 10,742 10,759 10,649 10,403 10,314 10,000 9,222 9,000 9,000 8 747 8,747 9,000 7,936 7,545 7,061 7,001 6,000 6,000 6,000 3,000 3,000
Slide 7: 2009: Stable earnings despite difficult economic conditions
2009: 009 Stable Stab e earnings ea gs despite desp te difficult d cu t economic eco o c conditions co d t o s EBIT Net Profit Operating Cash Flow 5yr-CAGR 21% 5yr-CAGR 21% 5yr-CAGR 18% 300 300 400 45 300 200 200 60 200 357 368 253 250 325 229 100 100 170 100 207 134 140 140 188 115 92 66 0 0 0 2005
Slide 8: Very international business
Very e y international te at o a bus business ess Australia 27% Germany 32% 2009: €10.4bn Asia 5% Africa 6% America Rest of Europe 6% 24% March 11, 2010 Bilfinger Berger AG Company Presentation Page 7
Slide 9: 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 g and Civil Services Concessions Industrial Transport Commercial Industrial Services Public Private infrastructure Industrial Power Services Partnerships P
Slide 10: European market leader in Industrial Services
European u opea market a et leader eade in Industrial dust a SeServices ces for the process industry Industrial Services Customer structure Retention rate Contract structure diversified Processing Industry: 90% Maintenance Oil and Gas 35% > 90% 10% Service projects Chemical, Petrochemical, Pharma 25
Slide 11: Strong player in Power Services
St o g player Strong p aye in Power o e Se Services ces European market leader for high-pressure piping Power Services Customer structure Retention rate Contract structure fairly concentrated 50% Maintenance > 90% Utilities 85% 50% Service projects Industry 15% Offered services Output volume per reg
Slide 12: German market leader for integrated facility management
German Ge a market a et leader eade for o integrated teg ated facility ac ty management a age e t Facility Services Customer structure Retention rate Contract structure diversified 90% Maintenance Banking and Insurance 30% > 90% 10% Service projects Industrials 30% Health Care 5% Others 35% Offered
Slide 13: Agenda
Agenda ge da 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights 2009 3. Outlook 4. Financials 5. Appendix March 11, 2010 Bilfinger Berger AG Company Presentation Page 12
Slide 14: Civil: Ongoing positive demand for transport infrastructure projects
Civil: O C Ongoing go g positive pos t e demand de a d for o transport t a spo t infrastructure ast uctu e p projects ojects Markets and highlights Germany Higher order backlog due to Australian 19% business and currency effects Australia 41% Planned decrease in output following sale of 2009: Ra
Slide 15: Building and Industrial: Progressing toward target margin
Building u d ga and d Industrial: dust a Progressing og ess g to toward a d ta target get margin ag Markets and highlights Other Decrease in orders received due to lower regions i 7% demand in commercial construction and strict Germany 31% selectivity 2009: German reorganization completed €2.0bn
Slide 16: Services: Output volume above €5 billion mark for the first time
Services: Se ces Output volume o u e abo above e €5 b billion o mark a for o tthe e first st ttime e Markets and highlights Australia Organic O i development: d l t Asia 8% -2% in output volume, -2% in EBIT 4% Africa EBIT margin of 4.7% after 4.8% in 2008 despite Germany 4% 41% difficult d cu t
Slide 17: Concessions: Approaching the €400 million target
Concessions: Co cess o s Approaching pp oac g tthe e€€400 00 million o ta target get Markets and highlights Australia Germany S Seven projects j t putt into i t operation ti 8% 19% Two financial closes with €49 million additional committed equity in U.K. 12/2009: Canada 28% €340 €340m EBIT imp
Slide 18: Agenda
Agenda ge da 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights 2009 3. Outlook 4. Financials 5. Appendix March 11, 2010 Bilfinger Berger AG Company Presentation Page 17
Slide 19: Outlook
Out oo Outlook Continuing operations: 2009: Output volume of €7.7 billion, EBIT of €173 million, net profit of €80 million 2010: Further growth in output volume Disproportionately high increase in EBIT and net profit Business operations in Australia (discontinued operations) will contribute to o
Slide 20: Key strategic objectives
Key ey strategic st ateg c object objectives es Dedicated to creating value Further expansion in Services Significant reduction of volume Further development of and margin improvement in Concessions construction Organic as well as external growth Reduction of construction business Investments
Slide 21: Agenda
Agenda ge da 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights 2009 3. Outlook 4. Financials 5. Appendix March 11, 2010 Bilfinger Berger AG Company Presentation Page 20
Slide 22: Volume and contract overview 2009 by business segment
Volume ou ea and d co contract t act o overview e e 2009 009 by business segment Output volume Orders received Order backlog in € million 2008 2009 Change g 2008 2009 Change g 2008 2009 Change g Civil 3,934 3,286 -16% 3,338 3,849 15% 4,320 4,886 13% Building and Industrial 2,020 2,018 0% 1,915 1,847
Slide 23: EBIT and net profit in line with initial guidance for 2009
EBIT and net profit in line with initial guidance for 2009 Increased dividend distribution proposed in € million FY 2008 FY 2009 EBIT 298 250 Net interest result -15 -36 EBT 283 214 Income taxes -79 -71 Minority interest -4 -3 Net profit 200 140 1) EPS (in €) 5.18 3.79 1) DPS (in €) 1.85 2.00 1) Aft
Slide 24: Decrease in net interest result
Decrease ec ease in net et interest te est result esu t in € million FY 2008 FY 2009 Interest income 34 17 Interest expense -22 -27 Gain on disposal of securities 1 0 Current interest result 13 -10 Net interest from pensions -10 -13 Interest expense for minority interest -18 18 -13 13 Net interest r
Slide 25: Balance sheet as of December 31, 2009
Balance a a ce ssheet ee as o of December ece be 331,, 2009 009 Assets Dec. 31, 2009 Dec. 31, 2009 Equity and liabilities In € million In € million 7,941 +1,168 +1,168 7,941 Cash 798 +78 Other current assets 698 +55 +404 1,811 Other current liabilities2) -43 512 Liabilities from POC Trade receivable
Slide 26: Financial situation leaves room for further acquisitions
Financial a c a ssituation tuat o leaves ea es room oo for o further u t e acqu acquisitions sto s Dec 31 Mar 31 Jun 30 Sept 30 Dec 31 in € million 2008 2009 2009 2009 2009 Cash and cash equivalents 720 383 429 514 798 Financial liabilities (excluding non-recourse) -328 -336 -473 -398 -354 Pension p
Slide 27: Recourse debt structure: No short-term refinancing needs
Recourse ecou se debt structure: st uctu e No short-term refinancing needs €250 million promissory note loan with approx. 6% interest rate p.a. Æ valid through 2011 (€84 million) and 2013 (€166 million) €89 million financial leases Æ mainly construction equipment €15 million short-term borrowi
Slide 28: Strong operating cash flow also a result of lower working capital needs
Strong S o g ope operating a g cas cash flow o aalso so a result esu o of lower o e working o g cap capital a needs eeds in € million FY 2008 FY 2009 Cash earnings 322 275 Change in working capital 161 99 Gains on disposals of non-current assets -126 -6 Cash flow from operating activities 357 368 Ca
Slide 29: ROCE calculation
ROCE OC calculation ca cu a o Capital employed Return ROCE WACC Value added in € million in € million in % in % in € million 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 Civil 381 385 28 7 7.3 1.8 13.0 13.0 -22 -43 Building and Industrial 112 111 29 40 25.9 36.3 13.0 13.0 15 26 Services 1,074 1
Slide 30: Five-year overview
Five-year e yea ooverview e e 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 110 170 229 298 250 EBT 115 173 228 283 214 Net profit 66 92 134 200 140 Cash flow
Slide 31: Agenda
Agenda ge da 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights 2009 3. Outlook 4. Financials 5. Appendix March 11, 2010 Bilfinger Berger AG Company Presentation Page 30
Slide 32: Concessions portfolio as of 12/31/2009: Transport infrastructure
Co cess o s po Concessions portfolio t o o as o of 12/31/2009 /3 / 009 Transport infrastructure Investm ent Percentage Equity Method of con- Status Concession period volum e held com m itted solidation 1) € million % € million Transport Infrastructure - Herrentunnel, Lübeck, Germany 176 50 - 2) E op
Slide 33: Concessions portfolio as of 12/31/2009: Social infrastructure
Co cess o s po Concessions portfolio t o o as o of 12/31/2009 /3 / 009 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 20 24 2 E
Slide 34: Majority of projects is 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 December 31, 2009 Construction Ramp-up p p Yield Maturityy Present value Accumulated cash flows (nominal) 8 projects 7 project 11 projects Time BAB A1, GE
Slide 35: 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
Slide 36: 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 2009: NPV of € 202 million at a discount rate of 10.2% significantly above b k value book l off € 140 million illi 400 339 300 285 240 202 200 170 144 100 0 +2
Slide 37: Share buyback and shareholder structure
Share buyback y and shareholder structure Share buyback Shareholder structure as of 12/31/2009 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 Av
Slide 38: Rights issue in October 2009 to preserve financial flexibility
Rights g ts issue ssue in Octobe October 2009 009 to preserve p ese e financial a c a flexibility e b ty Subscription ratio: 1 for 4 4, ii.e. e 88,828,025 828 025 new shares Subscription price: € 30.60 per share Gross proceeds: € 270 million Settlement of shares: October 22 to 23, 2009 Tot
Slide 39: Financial calendar and share facts
Financial calendar and share facts April 15, 2010 Annual General Meeting 52 week high / low: € 58.80 / € 21.57 (as at March 11, 2010) May 10, 2010 Interim Report Q1 2010 Closing price March 11, 2010 € 48.80 1) Market cap: € 2.25 bn (as at March 11, 2010) Aug. A 12, 12 2010 I t i Report Interim
Slide 40: 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