Bilfinger Se · XETR:GBF
Bilfinger — Non-Deal Roadshow (February 2015)
35 slides from Bilfinger's roadshow presentation, Feb 18, 2015
Slide 1: Bilfinger SE Company Presentation
February 18, 2015 Bilfinger SE Company Presentation
Slide 2: Agenda
Agenda 1. Bilfinger at a glance 2. Key points of midterm corporate development 3. Facts and figures FY 2014 4. Financial backup Bilfinger SE Company Presentation | February 18, 2015 Page 2
Slide 3: Successful evolution into a leading international engineering and services group
Successful evolution into a leading international engineering and services group Segment Industrial Power Building and Facility Focus Process Industry Utilities Real Estate Output volume 2014 € 3.7 bn (47%) € 1.5 bn (19%) € 2.7 bn (34%) EBITA margin 2014 5.1% 0.6% 5.1% Divisions Industrial Maintenan
Slide 4: Broadening international footprint
Broadening international footprint Growth strategy to further strengthen non-European business Output volume by region 4% 3% Asia Africa 13% America 37% Germany 2014: €7.690m 43% Rest of Europe Bilfinger SE Company Presentation | February 18, 2015 Page 4
Slide 5: Bilfinger business model supported by favorable long-term industry trends
Bilfinger business model supported by favorable long-term industry trends Positive structural trends Risk diversification Strong market positions ▪ Outsourcing Broad customer range Industrial: ▪ Service bundling Mostly small project sizes European market leader in Industrial Growing regional diversi
Slide 6: Agenda
Agenda 1. Bilfinger at a glance 2. Key points of midterm corporate development 3. Facts and figures FY 2014 4. Financial backup Bilfinger SE Company Presentation | February 18, 2015 Page 6
Slide 7: Key points of midterm corporate development
Key points of midterm corporate development Evolution into a services group largely completed Improving the Group’s operating performance ▪ Measures taken to improve the Group’s operating performance are of key importance ▪ Measures apply above all to Power, which requires a fundamental realignment
Slide 8: Industrial Prospects
Industrial Prospects ▪ Expansion of higher-margin and integrated service offerings ▪ Growth in core markets through the consistent utilization of existing client potential ▪ Cost savings following the merger of operating units ▪ Geographic focusing, expansion in selected foreign markets, for example
Slide 9: Power Prospects
Power Prospects ▪ Concentration on improving operating performance ▪ South Africa: focus on services and modernization projects ▪ India: focus on component production ▪ Further internationalization, in particular into markets with a high share of coal in the energy mix Bilfinger SE Company Presentat
Slide 10: Building and Facility Prospects
Building and Facility Prospects • ▪ Taking advantage of the outsourcing trend for real-estate services • Expansion of business with premium services, for example real-estate valuation or transaction consulting • Increased management of international real-estate portfolios in Europe • Further expansi
Slide 11: Agenda
Agenda 1. Bilfinger at a glance 2. Key points of midterm corporate development 3. Facts and figures FY 2014 4. Financial backup Bilfinger SE Company Presentation | February 18, 2015 Page 11
Slide 12: FY 2014: An unsatisfactory year for Bilfinger
FY 2014: An unsatisfactory year for Bilfinger ▪ Earnings in line with forecast ▪ Dividend of €2.00 per share proposed ▪ Cautious expectations for 2015 ▪ Bilfinger Excellence implemented as planned ▪ Restructuring programs in Power and Industrial ▪ Construction division sold to Implenia ▪ Offshore Sy
Slide 13: Increase in output volume; orders received and order backlog decline
Increase in output volume Orders received and order backlog decline Output volume Orders received Order backlog +2% -12% -16% 7,552 7,690 7,513 6,600 6,476 5,461 FY 2013 FY 2014 FY 2013 FY 2014 Dec. 2013 Dec. 2014 in € million in € million in € million Bilfinger SE Company Presentation | February 18
Slide 14: Earnings and operating cash flow significantly below prior-year period
Earnings and operating cash flow significantly below prior-year period Adjusted EBITA Adjusted net profit continuing operations Operating cash flow -35% -30% -69% 415 270 251 210 175 65 FY 2013 FY 2014 FY 2013 FY 2014 FY 2013 FY 2014 in € million in € million in € million EBITA: adjusted for capital
Slide 15: Industrial: EBITA below prior-year level
Industrial EBITA below prior-year level Markets and highlights Output volume by region 3% ▪ Stable output volume 19% Germany ▪ Orders received decreased considerably, Rest of Europe order backlog down accordingly America FY 2014 22% ▪ The reticence to invest on the part of the European process indus
Slide 16: Power: Ongoing weakness in demand
Power Ongoing weakness in demand Markets and highlights Output volume by region ▪ Output volume, orders received as well as order backlog significantly 12% 12% Germany below the prior-year figure 4% Rest of Europe ▪ Low demand is the result of the energy transformation in Germany and its America neg
Slide 17: Building and Facility: Continuation of positive business development
Building and Facility Continuation of positive business development Markets and highlights Output volume by region ▪ Increase in output volume and EBITA 9% 2% Germany ▪ Organic development FY 2014: 0% in output volume, +5% in EBITA 29% Rest of Europe ▪ EBITA margin increased to 5.1% (FY 2013: 4.9%)
Slide 18: Discontinued operations
Discontinued operations ▪ Concessions: Sale to BBGI infrastructure fund is completed Proceeds of €103 million Capital gain of €18 million • Implenia signed an agreement in December 2014 to acquire the Construction division, which is active in Germany and other European countries. Completion of the t
Slide 19: Outlook for FY 2015: Reserved development expected
Outlook for FY 2015: Reserved development expected Output volume will decrease to a magnitude of €7.5 billion (2014: €7.7 billion). Adjusted EBITA will increase slightly with a higher margin (2014: €270 million) Basis for this is the significantly improved earnings in Power as well as a higher e
Slide 20: Agenda
Agenda 1. Bilfinger at a glance 2. Key points of midterm corporate development 3. Facts and figures FY 2014 4. Financial backup Bilfinger SE Company Presentation | February 18, 2015 Page 20
Slide 21: FY 2014 Volume and contract overview
FY 2014 Volume and contract overview Output volume Orders received Order backlog in € million FY 2013 FY 2014 Change FY 2013 FY 2014 Change FY 2013 FY 2014 Change Industrial 3,721 3,705 0% 3,986 3,276 -18% 2,791 2,404 -14% Power 1,577 1,445 -8% 1,434 1,090 -24% 1,404 1,060 -25% Building and Facility
Slide 22: Net loss due to one-time burdens
Net loss due to one-time burdens in € million FY 2013 FY 2014 Comments FY 2014 Output volume 7,552 7,690 EBITA 349 198 EBITA adjusted 415 270 EBITA margin adjusted 5.5% 3.5% • Amortization on intangible assets from acquisitions of €43m Amortization -51 -191 • Goodwill impairment Power of €148m EBIT
Slide 23: Organic development Group
Organic development Group Organic development of output volume Organic development of adjusted EBITA +5% -1% -2% +4% +2% -41% +353 -159 +2% -56 +6 +17 -168 -35% 7,552 7,690 415 270 FY 2013 Net F/X Organic FY 2014 FY 2013 Net F/X Organic FY 2014 acqusitions acqusitions in € million in € million Bilfi
Slide 24: Overview of earnings adjustments
Overview of earnings adjustments in € million FY 2013 FY 2014 Comments FY 2014 EBITA 349 198 • Excellence: -€43m (FY 2013: -85m EUR) Adjustments special items (pre-tax) 66 72 • Restructuring expenses, mainly in Industrial and Power: -€38m • Capital gain Julius Berger Nigeria: €9m (FY 2013: €19m) EBI
Slide 25: Equity ratio of 32% despite goodwill impairment
Equity ratio of 32% despite goodwill impairment in € million Dec. 31, 2013* Dec. 31, 2014 Comments Dec. 31, 2014 Balance sheet total 6,532 5,962 • Decrease as a result of impairment in Power of €148m offset by Goodwill including intangibles from acquisitions 1,986 1,979 increase due to acquisition o
Slide 26: Valuation net debt
Valuation net debt in € million Dec. 31, 2013 Dec. 31, 2014 Comments Dec. 31, 2014 Cash and cash equivalents 669 403 • See cash flow statement for details of change Financial debt (excluding non-recourse) -545 -544 • Including €500 million corporate bond (due Dec. 2019) Net cash/ net debt 124 -141 •
Slide 27: Change in working capital within expected range
Change in working capital within expected range in € million FY 2013 FY 2014 Comments FY 2014 Cash earnings from continuing operations 276 163 • Decrease due to lower net profit from continuing operations Change in working capital -33 -78 • Working capital outflow as expected Gains on disposals of n
Slide 28: December 31, 2014 Balance sheet
December 31, 2014 | Balance sheet Assets Equity and liabilities 5,962 -570 -570 5,962 Assets held for sale (Construction) 316 -344 -289 372 Liabilities held for sale (Construction) Cash and cash equivalents 403 -244 -37 2,157 Other current liabilities Receivables and other current assets 2,216 +3 -7
Slide 29: ROCE per segment
ROCE per segment Capital employed Return ROCE WACC Value added in € million in € million in % in % in € million FY 2013 FY 2014 FY 2013 FY 2014 FY 2013 FY 2014 FY 2013 FY 2014 FY 2013 FY 2014 Industrial 1,367 1,295 214 189 15.7 14.7 8.75 10.50 95 54 Power 658 653 148 8 22.4 1.2 8.75 12.25 90 -72 Bui
Slide 30: Bilfinger Excellence
Bilfinger Excellence Driving integration and collaboration Enhancing efficiency in SG&A functions Dissolution of former sub-group layer and related corporate centers Direct leadership of 12 divisions by Executive Board will drive integration and collaboration and thus organic growth Efficiency
Slide 31: Financial overview
Financial overview in € million 2010 2011 2012 2013 2014 Output volume 7,983 8,397 8,586 7,552 7,690 Orders received 7,854 7,690 8,304 7,513 6,600 Order backlog 8,429 7,557 7,388 6,476 5,461 1) EBITA adjusted 346 379 387 415 270 EBITA 346 379 432 349 198 1) 2) Net profit adjusted 205 235 241 251 175
Slide 32: Shareholder structure
Shareholder structure Dec 31, 2014 Shareholder structure Treasury Stock 4% ▪ High proportion of institutional investors Undisclosed/ Retail Investors 34% ▪ International shareholder base Institutional Investors: 62% ▪ Freefloat according to Deutsche Boerse: 70.36% Cevian Capital 26% Germany 14% Trea
Slide 33: Financial calendar and share facts
Financial calendar and share facts 52 week high / low: € 93.05 / € 41.54 (as of February 17, 2015) 2015 Mar. 18, 2015 Press conference FY 2014 Closing price February 17, 2015 € 54.57 May 7, 2015 AGM and Interim Report Q1 2015 Market cap: 1) € 2.5 bn (as of February 17, 2015) Aug. 12, 2015 Interim Re
Slide 34: Other investor information
Other investor information in € per share 2010 2011 2012 2013 2014 For further information please contact: 1) Earnings 6.43 8.93 6.26 3.91 -1.62 Andreas Mueller Earnings adjusted 2) 4.64 5.32 5.46 5.69 3.96 Head of Corporate Accounting & Tax / IR Cash flow 5.53 6.37 5.26 4.76 1.47 Phone: +49 (0) 621
Slide 35: Disclaimer
Disclaimer 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 expectation