Bilfinger Se · XETR:GBF
Bilfinger — Non-Deal Roadshow (November 2021)
31 slides from Bilfinger's roadshow presentation, November 2021
Slide 1: Bilfinger SE Company Presentation
Bilfinger SE Bilfinger SE Company Presentation November, 2021
Slide 2: Overview and strategic outline
Overview and strategic outline
Slide 3: Bilfinger at a glance
Bilfinger at a glance Leading international industrial services provider Efficiency enhancement of assets, ensuring a high level of availability and €3.46bn revenue reducing maintenance costs Clear 2-4-6 strategy with two service lines, four business units and six focus industries thereof recu
Slide 4: 2-4-6 still holds
2-4-6 still holds 2 Service Lines, 4 Business Units, 6 Focus Industries Our ambition We engineer and deliver process plant performance Where 2 Service Lines 4 Business Units 6 Focus Industries to play E&M – Engineering & E&M Europe Chemicals & Pharma & Maintenance E&M North America Petroch
Slide 5: Global trends
Global trends Aging Assets & ESG / Climate Skilled Labor Data & Artificial Asset Integrity Change Shortage Intelligence Europe & US: Aging assets ▪ CO2 limits Europe ▪ Machine learning ▪ Increasing maintenance ▪ Emissions & Air pollution ▪ Demographics ▪ Predictive / prescriptive costs ▪ Clean energ
Slide 6: Bilfinger core capabilities
Bilfinger core capabilities Skilled labor Domain Expertise Digitalization ▪ Europe’s #1 Maintenance Services ▪ Engineering / Process knowledge ▪ Bilfinger Digital Next Company ▪ Focus on key industries ▪ Convergence of BMC & BCAP to ▪ Leading Employer Branding ▪ Customer intimacy / collaboration dig
Slide 7: Our capabilities addressing global trends
Our capabilities addressing global trends Global Trends affecting our business Bilfinger Aging Assets & ESG / Climate Skilled Labor Data & Artificial capabilities Asset Integrity Change Shortage Intelligence Skilled Fabric maintenance Circular economy Employer of choice Cloud analytics labor Domain
Slide 8: We never compromise on integrity and safety
We never compromise on integrity and safety Number and severity of incidence continues to fall Safety is good business Integrity is non-negotiable Safety KPIs (based on 1m man hours) 1 0.84 0.71 0.67 Fully integrated Prevent Established compliance Detect culture 0.23 Self- 0.16 Sustainable focus opt
Slide 9: Service Lines
2 Service Lines Engineering & Maintenance Technologies FY 2020: E&M Europe: Revenues €2,221m, EBITA adj. €69m FY 2020: Revenues €498m, EBITA adj. -€10m FY 2019: E&M International: Revenues €521m, EBITA adj. -€21m E&M covers the entire lifecycle of an industrial plant: T provides solutions for the pr
Slide 10: Engineering & Maintenance: Excellence in services covering the lifecycle of industrial plants
2 Service Lines Engineering & Maintenance: Excellence in services covering the lifecycle of industrial plants Engineering Maintenance Turnarounds AVR Chevron Neste refinery The Netherlands, Duiven USA, Offshore, Gulf of Mexico Finland, Porvoo • Conceptual engineering and construction • Industrial an
Slide 11: Technologies: Excellence in products, manufacturing and innovative solutions
2 Service Lines Technologies: Excellence in products, manufacturing and innovative solutions Nuclear services New energy Fabrication & Installation EDF Hinkley Point Cryostar LNG stations BP Deutschland (Ruhr Oel GmbH) United Kingdom Germany, Poland, France, BeNe Germany, Gelsenkirchen-Scholven • Ne
Slide 12: Mid-term targets
Mid-term targets
Slide 13: How we will drive growth going forward
How we will drive growth going forward Growth areas Ambition – Top line 1 Integrate product & ▪ Roll out service products (BMC,BTC,BCAP etc.) Facilitate growth services portfolio ▪ Focus on growth by business line and “white spots” 2 ‘Big-ticket’ ▪ Integrated project organization to combine group sc
Slide 14: Key levers for gross margin growth
Key levers for GROSS MARGIN growth Target of 12% confirmed Operational levers Ambition – Bottom line Lean organization ▪ Operational excellence programs in full swing Performance culture and culture ▪ Launch of further Lean programs following successful pilot KPI-driven ▪ Standardize KPIs to monitor
Slide 15: Over the last 5 years, SG&A has been reduced by over €100 million
Over the last 5 years, SG&A has been reduced by over €100 million Target of 7% confirmed from 2022 Degree of target achievement ERP/SAP Reduction of #legal entities Adjusted SG&A [€ million, %] in terms of revenue 100% Revenues, € billion as of Jun. 30, 2021 4.2 4.3 4.0 4.2 279 ~45% 3.5 232 90% as o
Slide 16: Financial targets 2024
Financial targets 2024 Revenues EBITA ROCE Free Cash margin reported Flow sustainably min. reported >5 5 8-10 >200 € billion % % € million Investment Grade (mid-term perspective) Sustainable dividend stream going forward Policy: 40 to 60% of adjusted net profit Bilfinger SE | Company Presentation |
Slide 17: Financials Q3 2021
Financials Q3 2021
Slide 18: Q3 2021: On track to reach full-year targets 2021
Q3 2021 On track to reach full-year targets 2021 • Overall positive environment, some headwinds due to inflation challenges and Markets supply chain bottlenecks on customer side +31% org. • Strong increase in all segments compared to weak prior-year quarter Orders received • Book-to-bill YTD 1.07 +1
Slide 19: Markets: E&M Europe
Markets: E&M Europe Industries Overall %* trend • Maintenance market continues to recover and stabilize Chemicals & • Larger investments going forward but not on original programs/ scale due to 40% Petrochem supply-chain bottlenecks and cost inflation concerns • Deferred work/shutdowns raise activit
Slide 20: Markets: E&M International
Markets: E&M International Industries Overall %* trend • Trend for expansion and modernization projects in Middle East (ME) intact Chemicals & 20% • Attractive project pipeline in North America (NA) (e.g. petrochemical Petrochem companies and refineries put larger emphasis on maintenance projects) •
Slide 21: Markets: Technologies
Markets: Technologies Industries Overall %* trend • Energy transition focus in all our regions, esp. Europe and NA Energy & 40% • Nuclear demand for new builds and maintenance increasing, esp. in France, Utilities UK, Finland and demand increasing for decommissioning in Germany • Mega trends remain
Slide 22: Orders received significantly above prior-year quarter
Orders received significantly above prior-year quarter, Year-to-date book-to-bill at 1.07 Development of orders received 2020 2021 Orders received Q3 Q4 Q1 Q2 Q3 • Strong increase by 29% (org.: +31%) compared to prior year quarter +29%/+31% org. • Positive year-on-year development in all Orders rece
Slide 23: Revenue at good level, significant year-on-year recovery
Revenue at good level, significant year-on-year recovery Very positive EBITA development, supported by real estate disposal gains Development of revenue and profitability Revenue • Solid development, growth of 9% (org.: +12%) 2020 2021 EBITA Q3 Q4 Q1 Q2 Q3 • Technologies and E&M Europe improving and
Slide 24: Gross margin further improved to 11.3%
Gross margin further improved to 11.3% SG&A expenses still below expected quarterly run-rate partly due to one-time effects Gross profit (€ million) Adjusted selling and administrative expenses (€ million) 106 95 (11.3%) 89 (9.7%) 6 3 1 (10.2%) -75 -73 -71 -69 -70 -70 (-7.9%) (-7.2%) (-7.5%) Q3/20 Q
Slide 25: Segment E&M Europe: Significant revenue growth at a good margin level
Segment E&M Europe: Significant revenue growth at a good margin level Development of revenue and profitability Orders received 2020 2021 • +17% (org.: +15%) against prior-year quarter Q3 Q4 Q1 Q2 Q3 • Book-to-bill YTD >1 +11%/+10% org. Revenue 665 Revenue (€ million) 633 586 571 561 • Increase of 11
Slide 26: Segment E&M International: Substantial increase in orders received
Segment E&M International: Substantial increase in orders received Revenue and EBITA improvement slower than anticipated Development of revenue and profitability Orders received • Substantial increase of +41% (org.: +37%) 2020 2021 compared to weak prior year quarter Q3 Q4 Q1 Q2 Q3 Revenue +31%/+32%
Slide 27: Segment Technologies: Substantial increase in orders received
Segment Technologies: Substantial increase in orders received due to Hinkley Point C call-off order Solid earnings development Development of revenue and profitability Orders received 2020 2021 • Substantial increase of +90% (org.: +92%) Q3 Q4 Q1 Q2 Q3 including call-off order at HPC (NSSS project,
Slide 28: Net profit significantly above prior year; Free Cash Flow
Net profit significantly above prior year, supported by low tax rate Free Cash Flow with good performance, also due to real estate disposals Net profit 1) (€ million) Free cash flow 1) (€ million) 41 80 73 31 43 44 11 -19 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Reported Net Profit Reported FCF Adjusted Net
Slide 29: Development of net liquidity and net trade assets
All initiatives in place to improve DSOs by year-end, meanwhile balanced out with high DPOs, NTA slightly improved against June 30, 2021 Development of net liquidity Net liquidity 1) (€ million) Cash flow development year-to-date (€ million) excl. IFRS 16 5 -2 -2 278 -5 13 -10 -2 65 216 01. Jul 2021
Slide 30: Outlook 2021 slightly raised, again
Outlook 2021 slightly raised, again Actual FY 2020 Outlook FY 2021 Revenue €3,461 million Significant growth EBITA adjusted margin to exceed 2019 pre- EBITA adjusted / margin €20 million / 0.6% crisis level and to slightly surpass 3 percent Free cash flow reported €93 million Positive, but below pri
Slide 31: 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