Bilfinger Se · XETR:GBF
Bilfinger — Baader Investment Conference 2013
27 slides from Bilfinger's conference presentation, Sep 26, 2013
Slide 1: Successful evolution into a leading international Engineering and Services Group
September 26, 2013 Successful evolution into a leading international Engineering and Services Group Baader Investment Conference Andreas Müller, Head of Corporate Accounting and Investor Relations
Slide 2: Agenda
Agenda 1. Bilfinger – Overview 2. Facts and figures 6m 2013 3. Mid-term strategic outlook Bilfinger SE Company Presentation | September 26, 2013 Page 2
Slide 3: Bilfinger at a glance
Bilfinger at a glance Output volume by region ▪ Successful evolution into a leading international Engineering and Services Group ▪ Output volume of € 8.6 billion, adjusted EBITA margin at 4.4% in 2012 ▪ Multinational player with leading positions in attractive markets ▪ Highly diversified customer b
Slide 4: Successful evolution into an Engineering and Services Group
Successful evolution into an Engineering and Services Group ▪ Limitation of volume in construction with clear regional focus and stringent risk profile ▪ Portfolio adjustment: Sale of Australian construction business (Valemus, 2011), exit of North American construction market (2011), reduction of in
Slide 5: Very strong market positions with substantial scale of operations and significant business diversity
Very strong market positions with substantial scale of operations and significant business diversity International footprint Market positioning by segments Industrial European market leader in Industrial Services for the process industry Power Strong player in Power Services European market le
Slide 6: Robust and predictable business model supported by favorable long-term industry trends
Robust and predictable business model supported by favorable long-term industry trends Outsourcing Major structural business drivers: Service bundling Internationalization Attractive business profile: Structural growth potential 60% of output volume are recurring maintenance-driven services combined
Slide 7: Further growth in output volume and earnings anticipated for FY 2013
Further growth in output volume and earnings anticipated for FY 2013 Output volume EBITA adjusted Net profit adjusted 8,397 8,586 7,983 379 378 346 235 231 205 2010 2011 2012 2010 2011 2012 2010 2011 2012 in € million in € million in € million All figures refer to continuing operations. EBITA: adjus
Slide 8: Significant scale positions across a diversified services portfolio
Significant scale positions across a diversified services portfolio Industrial Power Building and Facility Construction Process Industry Utilities Real Estate Mobility and energy Output volume 2013e 13% 46% €4.0bn €1.3bn 26% €2.3bn €1.1bn 15% EBITA margin 2012 5.6% 9.3% 4.7% 1.8% EBITA target margin
Slide 9: Agenda
Agenda 1. Bilfinger – Overview 2. Facts and figures 6m 2013 3. Mid-term strategic outlook Bilfinger SE Company Presentation | September 26, 2013 Page 9
Slide 10: 6m 2013: Bilfinger anticipates significantly stronger second half of the year
6m 2013: Bilfinger anticipates significantly stronger second half of the year • Following a moderate start to the year, sequential growth of output volume, orders received and earnings in second quarter • Adjusted earnings still below previous year’s figures • Plan to divest Concessions business lea
Slide 11: Q2 output volume and orders higher than in the first quarter
Q2 output volume and orders higher than in the first quarter Output volume Orders received Order backlog -2% -3% -1% 4,156 4,023 4,097 4,029 7,525 7,430 6m 2012 6m 2013 6m 2012 6m 2013 June 2012 June 2013 in € million in € million in € million Bilfinger SE Company Presentation | September 26, 2013 P
Slide 12: Prevailing difficult market environment
Prevailing difficult market environment Earnings in second half will be supported by efficiency enhancement measures Adjusted EBITA Adjusted net profit continuing operations Adjusted EPS continuing operations -11% -21% -21% 164 2.33 146 103 1.84 81 6m 2012 6m 2013 6m 2012 6m 2013 6m 2012 6m 2013 in
Slide 13: Industrial: Significant growth in output volume and orders received due to acquisitions
Industrial Significant growth in output volume and orders received due to acquisitions Markets and highlights Output volume by region ▪ Price pressure and slow demand for projects due to lack of 14% 4% Germany economic momentum in Europe Rest of Europe ▪ Organic development: 2013e: 21% America -2% i
Slide 14: Power: Further increase in earnings
Power Further increase in earnings Markets and highlights Output volume by region ▪ Growth in output volume as a result of acquisitions 15% Germany 17% ▪ Orders received and order backlog influenced by typical volatility in Rest of Europe the awarding of major projects, for full-year 2013 a satisfac
Slide 15: Building and Facility: Positive business development
Building and Facility Positive business development Markets and highlights Output volume by region 1% 2% ▪ Key figures affected by deconsolidation of Nigerian activities, 11% Germany positive underlying development 22% Rest of Europe ▪ Organic development: America 2013e +3% in output volume, +8% in
Slide 16: Construction: Further reduction in volumes
Construction Further reduction in volumes Markets and highlights Output volume by region ▪ Output volume and earnings negatively influenced by long winter Germany 46% and still-difficult situation in the Infrastructure unit Rest of Europe ▪ Positive earnings in other Construction units 2013e ▪ Good
Slide 17: Discontinued operations: Concessions
Discontinued operations: Concessions ▪ Plan to sell activities of Concessions business segment due to their Committed equity by region decreasing strategic role Germany ▪ Sales process well under way, concrete talks with interested parties 33% UK ▪ Currently retained projects: M6 Duna and M6 Tolna M
Slide 18: Positive outlook for 2013 confirmed
Positive outlook for 2013 confirmed Our earnings forecast relates to adjusted EBITA and adjusted net profit from continuing operations. This serves to enable comparability over time The effect of the deconsolidation of the Nigerian business and further reduction in Construction will be more than
Slide 19: Agenda
Agenda 1. Bilfinger – Overview 2. Facts and figures 6m 2013 3. Mid-term strategic outlook Bilfinger SE Company Presentation | September 26, 2013 Page 19
Slide 20: BEST – Bilfinger escalates strength
Strategic program 2011 - 2016 “BEST – Bilfinger escalates strength“ Operational excellence Growth of higher-margin activities, both organically and via acquisitions “BEST“ Effective risk management Geographic expansion including emerging markets Deeper integration to boost cross-selling and bundling
Slide 21: BEST growth strategy
BEST growth strategy Expansion of higher-margin activities Organic growth Expansion of full-service offering in all our markets strategy Regional expansion and “follow our friends” strategy Leveraging of customer relationships from other segments Deeper integration Stronger market presence
Slide 22: External growth by segment
External growth by segment Industrial: Power: ▪ Regional expansion: Europe, USA, Middle East, Asia ▪ Regional expansion: Europe, USA, Middle East, Asia ▪ Oil and Gas sector ▪ Expansion of technological scope Building and Facility: Construction: ▪ German targets only with potential for sustainable, h
Slide 23: September 2013: New initiative “Bilfinger Excellence”
September 2013: New initiative “Bilfinger Excellence” Dissolution of current sub-group layer and related corporate centers Direct leadership of 14 divisions by Executive Board will drive integration and collaboration and Bilfinger thus organic growth Excellence Efficiency gains in SG&A functio
Slide 24: September 2013: New initiative “Bilfinger Excellence”
September 2013: New initiative “Bilfinger Excellence” Headcount reduction: ~1,250 FTE in non-customer facing SG&A functions only Recurring total personnel cost savings of € 80 - 90 million fully effective in FY 2015 Bilfinger In addition, non-personnel cost savings by an amount in the low to m
Slide 25: September 2013: New initiative “Bilfinger Excellence”
September 2013: New initiative “Bilfinger Excellence” Segments Industrial Power Building and Facility Construction € 3.6 bn* € 1.7 bn* € 2.3 bn* € 1.1 bn* Divisions Industrial Maintenance Power Systems Building Construction Insulation, Scaffolding Piping Systems Facility Services Infrastructure and
Slide 26: Group targets 2014 and 2016
Group targets 2014 and 2016 Output volume EBITA EBITA Margin Net Profit € 11 - 12 bn ~ € 400 m ~ € 700 m ~ 6% i.e. ~ € 9 EPS € 8.5 bn 4.7% € 397 m € 220 m 2011 2016 2011 2016 2011 2016 2011 2016 Organic Growth EBITA Margin 2014 Financial Ratios** Dividend Policy Group > 5.5% Output volume CAGR* Ad
Slide 27: Successful evolution into a leading international Engineering and Services Group
September 26, 2013 Successful evolution into a leading international Engineering and Services Group Baader Investment Conference Andreas Müller, Head of Corporate Accounting and Investor Relations