Bilfinger Se · XETR:GBF
Bilfinger — Bilfinger Berger — Non-Deal Roadshow (September 2009)
43 slides from Bilfinger's roadshow presentation, Sep 15, 2009
Slide 1: Legal dispute in Qatar / new earnings outlook
Investor Relations News Bilfinger Berger AG Investor Relations Carl-Reiß-Platz 1-5 68165 Mannheim Germany www.bilfinger.com Contact: Bettina Schneider Phone: +49-621-459-2377 Fax: +49-621-459-2761 Email: bettina.schneider @bilfinger.de Date: 09/09/2009 Bilfinger Berger: legal dispute in Qatar / new
Slide 2: The Multi Service Group: Dedicated to creating value
The Multi Service Group: Dedicated to creating value Roadshow Boston, September 15, 2009 Joachim Müller, CFO
Slide 3: Agenda
Agenda 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights Q2 2009 3. Outlook 2009 and beyond 4. Financials 5. Appendix September 15, 2009 Bilfinger Berger AG Company Presentation Page 1
Slide 4: The Multi Service Group – Highlights
The Multi Service Group – Highlights § A leading player on the international transport infrastructure market § A leading player for building and industrial construction in Germany and Australia § European market leader in Industrial Services for the process industry § Strong player in Power Services
Slide 5: Substantial increase in output volume
Substantial increase in output volume Orders received 2008 down due to strict order selection in construction and exchange rate fluctuations Output volume Orders received Order backlog CAGR 15% CAGR 14% CAGR 14% 12,000 12,000 12,000 11,275 10,742 10,759 10,649 10,314 10,000 9,222 9,000 9,000 9,000 8
Slide 6: Strong growth rates in earnings and cash flow
Strong growth rates in earnings and cash flow Exceptional item of plus €45m pre-tax and €60m after-tax in 2008 EBIT Net Profit Operating Cash Flow CAGR 32% CAGR 47% CAGR 31% 200 357 320 200 360 298 325 240 229 150 134 240 207 170 160 100 92 120 80 50 0 0 0 2006 2007 2008 2006 2007 2008 2006 2007 200
Slide 7: How will we deal with the challenges of a difficult economic environment?
How will we deal with the challenges of a difficult economic and financial environment? § Balanced portfolio: Our business portfolio is well-balanced segment and region wise § Cost flexibility: The more cyclical segments also have a more flexible cost structure § Visibility: Long duration of constru
Slide 8: Well balanced business portfolio
Well balanced business portfolio Building and Civil Services Concessions Industrial § Transport § Commercial § Industrial Services § Public Private infrastructure § Industrial § Power Services Partnerships § Public-sector § Facility Services 2009e: 06/2009: International International International
Slide 9: Well balanced regional portfolio
Well balanced regional portfolio Australia Germany 27% 31% 2009e: €10.1bn Asia 6% Africa 5% America Rest of Europe 5% 26% September 15, 2009 Bilfinger Berger AG Company Presentation Page 7
Slide 10: A variable cost structure leads to flexibility
A variable cost structure leads to flexibility Major cost elements Cyclicality Cost flexibility ordered by importance Building and Industrial Medium to High Medium to High Sub-contractors Personnel Civil Medium Medium Personnel Sub-contractors Material Depreciation Services Low Medium Personnel Sub-
Slide 11: Good visibility in Services: Industrial Services
Good visibility in Services: Industrial Services focused on maintenance and modernization 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% Energy 15
Slide 12: Good visibility in Services: Power Services
Good visibility in Services: Power Services with high order backlog 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 region Life-cycle services for fossil f
Slide 13: Good visibility in Services: Facility Services
Good visibility in Services: Facility Services mainly based on multi-year framework contracts 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 serv
Slide 14: Solid financial situation and capital structure
Solid financial situation and capital structure No short-term refinancing needs June 30 June 30 Dec 31 in € million 2008 2009 2008 Cash & marketable securities 556 429 720 Financial liabilities (excluding non-recourse) -127 -473 -328 Pension provisions -142 -226 -219 Net cash (+) / net debt (-) posi
Slide 15: Bilfinger Berger – Dedicated to creating value
Bilfinger Berger – Dedicated to creating value § Value driver GROWTH Our services business will continue its long-term growth, both organic and through acquisitions. We will continue our involvement in concession projects with attractive returns. § Value driver PROFITABILITY In construction, our foc
Slide 16: Agenda
Agenda 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights Q2 2009 3. Outlook 2009 and beyond 4. Financials 5. Appendix September 15, 2009 Bilfinger Berger AG Company Presentation Page 14
Slide 17: Civil: Earnings improved
Civil: Earnings improved Markets and highlights Germany § Output volume and orders received were – 18% adjusted for the sale of Razel – at the prior Australia year level 41% 2009e: § Economic stimulus programs ensure demand €3.3bn Rest of Europe § Good demand together with strong order 23% backlog a
Slide 18: Building and Industrial: Weak demand in commercial construction
Building and Industrial: Weak demand in commercial construction Markets and highlights § Output volume and orders received increased due to Australian business Germany Australia 35% § However, book-to-bill below one 50% 2009e: § Public-sector demand cannot offset decline in €2.0bn commercial constru
Slide 19: Services: Positive development continues
Services: Positive development continues Markets and highlights § Output volume in Australia Asia 8% Industrial Services: € 1,318 million 2% Africa Power Services: € 493 million Germany 3% Facility Services: € 668 million 42% America 2009e: § Organic development: 9% €4.8bn -1% in output volume, -3%
Slide 20: Concessions: Value of portfolio rises
Concessions: Value of portfolio rises Markets and highlights Australia Germany 10% 22% § Golden Ears Crossing now in operation § Burg Prison completed and handed over 06/2009: Canada €334m UK § Five more projects will go into operation in the 33% 18% second half of the year Rest of Europe § NPV incr
Slide 21: Agenda
Agenda 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights Q2 2009 3. Outlook 2009 and beyond 4. Financials 5. Appendix September 15, 2009 Bilfinger Berger AG Company Presentation Page 19
Slide 22: Outlook
Outlook § Financial Year 2009: § Output volume in the range of €10 billion § EBIT and net profit at least at prior year’s level – after adjustment for the exceptional item from the sale of Razel – of €250 million and €140 million respectively § The Group maintains EBIT-margin targets: § Civil: 2.5 t
Slide 23: Agenda
Agenda 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights Q2 2009 3. Outlook 2009 and beyond 4. Financials 5. Appendix September 15, 2009 Bilfinger Berger AG Company Presentation Page 21
Slide 24: Volume and contract overview 2008 by business segment
Volume and contract overview 2008 by business segment Output volume Orders received Order backlog in € million 2007 2008 Change 2007 2008 Change 2007 2008 Change Civil 3,647 4,161 14% 4,528 3,541 -22% 5,507 4,482 -19% Building and Industrial 1,965 2,020 3% 2,596 1,915 -26% 2,385 2,263 -5% Services 3
Slide 25: Volume and contract overview 6m 2009 by business segment
Volume and contract overview 6m 2009 by business segment Output volume Orders received Order backlog in € million 6m 2008 6m 2009 Change 6m 2008 6m 2009 Change 06/2008 06/2009 Change Civil 1,871 1,587 -15% 1,802 1,533 -15% 5,287 4,268 -19% Building and Industrial 986 1,040 5% 857 919 7% 2,240 2,142
Slide 26: Strong increase in earnings
Strong increase in earnings Underlying tax rate of 34% in € million 6m 2008 6m 2009 FY 2008 EBIT 53 119 298 Net interest result -1 -16 -15 EBT 52 103 283 Income taxes -14 -37 -79 Minority interest -2 -1 -4 Net profit 36 65 200 September 15, 2009 Bilfinger Berger AG Company Presentation
Slide 27: Decrease in interest result
Lower yields from cash and higher volume of recourse debt led to decrease in interest result in € million 6m 2008 6m 2009 FY 2008 Interest income 16 9 35 Interest expense -6 -12 -22 Current interest result 10 -3 13 Net interest from pensions -3 -6 -10 Interest expense for minority interest -8 -7 -18
Slide 28: Balance sheet as of June 30, 2009
Balance sheet as of June 30, 2009 Assets June 30, 2009 June 30, 2009 Equity and liabilities In € million In € million 7,077 +304 +304 7,077 Cash and marketable securities 429 -291 +116 1,523 Other current liabilities2) Other current assets 1,234 +218 -116 439 Liabilities from POC Receivables 1,156 +
Slide 29: Solid financial situation and capital structure
Solid financial situation and capital structure Dec 31 Mar 31 Jun 30 in € million 2008 2009 2009 Cash & marketable securities 720 383 429 Financial liabilities (excluding non-recourse) -328 -336 -473 Pension provisions -219 -222 -226 Net cash (+) / net debt (-) position 173 -175 -270 Concessions equ
Slide 30: Recourse debt structure: No short-term refinancing needs
Recourse debt structure: No short-term refinancing needs § € 250 million promissory note loan with approx. 6% interest rate p.a. à valid through 2011 (€ 84 million) and 2013 (€ 166 million) § € 68 million financial leases à mainly construction equipment § € 130 million drawn from syndicated loan fac
Slide 31: Strong increase in working capital
Strong increase in working capital after very favorable development in 2008 in € million 6m 2008 6m 2009 FY 2008 Cash earnings 71 132 322 Change in working capital -44 -295 161 Gains on disposals of non-current assets -17 -5 -126 Cash flow from operating activities 10 -168 357 Net capital expenditur
Slide 32: ROCE significantly surpassed WACC
ROCE significantly surpassed WACC High value added in 2008 Capital employed Return ROCE WACC Value added in € million in € million in % in % in € million 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 Civil 405 427 75 33 18.6 7.6 13.0 13.0 23 -23 Building and Industrial 146 112 38 29 26.1 25.9 13
Slide 33: Five-year overview
Five-year overview in € million 2004 2005 2006 2007 2008 Output volume 6.111 7.061 7.936 9.222 10.742 Orders received 6.139 7.545 10.000 11.275 10.314 Order backlog 6.339 7.001 8.747 10.759 10.649 EBIT 81 110 170 229 298 EBT 91 115 173 228 283 Net profit 51 66 92 134 200 Cash flow from operating act
Slide 34: Agenda
Agenda 1. Bilfinger Berger – The Multi Service Group: Dedicated to creating value 2. Segment highlights Q2 2009 3. Outlook 2009 and beyond 4. Financials 5. Appendix September 15, 2009 Bilfinger Berger AG Company Presentation Page 32
Slide 35: Concessions portfolio as of 06/30/2009 Transport infrastructure
Concessions portfolio as of 06/30/2009 Transport infrastructure Investment Equity Method of con- Percentage held Status Concession period volume committed solidation 1) € million % € million Transport Infrastructure - Herrentunnel, Lübeck, Germany 176 50 - 2) E operational 2005 - 2035 - M6, Hungary
Slide 36: Concessions portfolio as of 06/30/2009 Social infrastructure
Concessions portfolio as of 06/30/2009 Social infrastructure Investment Equity Method of con- Percentage held 1) Status Concession period volume committed solidation € million % € million Social Infrastructure - Liverpool & Sefton Clinics, Great Britain 20 24 1 E operational 2004 - 2030 - Barnet & H
Slide 37: Majority of projects is still under construction or in ramp-up
Majority of projects is still under construction or in ramp-up Maturity of project portfolio as of June 30, 2009 Construction Ramp-up Yield Maturity Present value Accumulated cash flows (nominal) 12 projects 3 project 10 projects Time A1, GER Burg Prison, GER District Admin Building Unna, GER Partic
Slide 38: Directors’ valuation of Concessions portfolio
Directors’ valuation of Concessions portfolio 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 treasury bonds (currently 6 %) taken effect ar
Slide 39: Portfolio value further increased
Portfolio value further increased Additional upside potential if lower discount rate is applied à End of June 2009: Increase of NPV to € 177 million at a discount rate of 10.2% which compares to a book value of € 118 million 400 308 300 256 213 200 177 147 121 100 0 -3% -2% -1% Existing +1% +2% Base
Slide 40: Share buyback program completed end of April 2008
Share buyback program completed end of April 2008 Share buyback Shareholder structure as of 12/31/2008 § Duration of program: § 100% free float February 19 to April 29, 2008 § High proportion of institutional investors § Volume: €100 million § Very international shareholder base 1,884,000 shares 5.0
Slide 41: Financial calendar and share facts
Financial calendar and share facts § Nov. 10, 2009 Interim Report Q3 2009 52 week high / low: € 49.10 / € 23.39 (as at September 07, 2009) § Nov. 26, 2009 Capital Markets Day Closing price Sept. 07, 2009 € 43.70 Market cap: 1) € 1.6 bn (as at Sept. 07, 2009) “Industrial Services“ Shares outstanding
Slide 42: Other investor information
Other investor information in € per share 2004 2005 2006 2007 2008 For further information please contact: Earnings per share 1.39 1.80 2.48 3.60 5.61 Andreas Müller Bettina Schneider Corporate Accounting Investor Relations Dividend 1.00 1.00 1.25 1.80 2.00 Investor Relations Mergers & Acquisitions
Slide 43: 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 expectations
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