Bilfinger: Entering new growth · PDF fileBilfinger: Entering new growth phase German...

Bilfinger:
Entering new growth phase German Investment Seminar, New York City
Andreas Mller, Head of Corporate Accounting and Investor Relations
Bettina Schneider, Deputy Head Investor Relations
January 15 to 16, 2013

Agenda page 2
1. Bilfinger Overview
2. Mid-term strategic outlook
3. Facts and figures 9m 2012
4. Financial backup
Bilfinger SE Company Presentation | January 15 to 16, 2013

Successful evolution into a leading international Engineering and Services Group
Output volume of 8.5 billion, EBITA margin at 4.7% in 2011
Multinational player with leading positions in attractive markets
Highly diversified customer base: process industry,
energy sector, financial sector, public sector
Low cyclicality and attractive risk profile
Strong track record in acquisitions and integration
Solid balance sheet allows for further external growth
Change of Group name to Bilfinger SE and new brand architecture
Change of sector classification to Services
One of the largest and most liquid MDAX companies, market cap
of approx. 3.4 billion
Bilfinger at a glance
page 3
38%
44%
8%
5% 5%
Germany Rest of Europe
America Africa
Asia
2012e
Output volume by region

Successful evolution into an Engineering and Services Group
Limitation of volume in construction with clear regional focus and stringent risk profile
Portfolio adjustment completed: Sale of Australian construction business (Valemus, 2011), exit of North American construction market
and reduction of investments in Nigerian business (2012)
Entry into engineering market for industrial and power facilities with the acquisitions of Tebodin and EnviCon (2012)
In total, investment of approx. 2.4 billion enterprise value in engineering and services companies since 2002
Transformation reduces dependency on economic cycles and on individual major projects
Financial capacity of up to 1 billion for further corporate development within our financial policy
Strict acquisition criteria (i.a. earnings accretion and ROCE > WACC in first full year)
Services related business segments as % of Group output volume
4%
EBITA margin 0.8%
79%
EBITA margin 4.7%
32%
EBITA margin 1.6%
2001 2005 2011

page 5
European market leader in Industrial Services for the process industry
Strong player in Power Services
European market leader for high-pressure piping
German market leader for integrated facility management
One of the few companies providing comprehensive real-estate related services throughout the life-cycle
A leading player in civil construction with major focus on Europe
Established partner of the public sector for concession projects in economically and politically stable regions
International footprint Market positioning by segments
Industrial
Power
Building and Facility
Construction
Concessions
Very strong market positions with substantial
scale of operations and significant business diversity

Robust and predictable business model supported by
favorable long-term industry trends page 6
Attractive business profile:
Structural growth potential
combined with high visibility
and low volatility
Outsourcing
Major structural business drivers: Service bundling
Internationalization
High retention rates of 85% to 95% over the various businesses
60% of output volume are recurring maintenance-driven services

Strong growth in output and earnings page 7
7,620 8,059
8,476 >8,400
2009 2010 2011 2012e
Output volume
196
382 397
450 to 470
2009 2010 2011 2012e
EBITA
in million in million in million
Output volume and EBITA figures refer to continuing operations
84
206 220
265 to 275
56
78
174
2009 2010 2011 2012e
Net profit
140
284
394
Discontinued
Operations
Continuing
Operations

Significant scale positions across a diversified
services portfolio page 8
Germany 17%
Rest of Europe
19%
UK 18% Canada
24%
Australia 22%
43%
15%
17%
25%
Concessions
PPP
Social and transport
infrastructure
Committed equity 09/2012
257m
Industrial
Process Industry
Power
Utilities
Building and Facility
Real Estate
Construction
Mobility and energy
Output volume 2012e
1.25bn 2.15bn 1.4bn
EBITA
margin 2011
(adjusted)*
5.4% 8.6% 4.5% 2.4%
EBITA target
margin 2014 6 to 6.5% 9 to 9.5% 4.5 to 5% >4% IRR > 10%
Output volume
organic CAGR
2011 to 2016
>5%
>5% >3%
3.6bn
* Adjusted for change in headquarters cost allocation effective 2012

Positive outlook FY 2012
Organic growth in the services business and the acquisitions made so far will compensate for the deconsolidation of the
Nigerian business and the focusing of the Construction business segment
Output volume FY 2012e: at least 8.4 billion (FY 2011: 8,476 million)
Due to capital gains from sale of concession projects and Nigerian activities, a significant increase in EBITA is anticipated
EBITA FY 2012e: 450 to 470 million (FY 2011: 397 million)
Net profit from continuing operations to be substantially higher than in FY 2011
Net Profit FY 2012e: 265 to 275 million (FY 2011: 220 million)
page 9

Agenda page 10
1. Bilfinger Overview
2. Mid-term strategic outlook
3. Facts and figures 9m 2012
4. Financial backup

Strategic program
BEST Bilfinger escalates strength page 11
Operational excellence
Growth of higher-margin activities, both organically and
via acquisitions
Deeper integration to boost cross-selling and
bundling of activities
Geographic expansion including
emerging markets
Effective risk management
BEST
Initiated November 2011

Leveraging of customer relationships from other segments
Stronger market presence through joint customer approach / tenders across segments
New types of contracts, e.g. life-cycle solution one
Leveraging the international distribution network
Deeper integration
through
cooperation
between segments
BEST growth strategy
Expansion of higher-margin activities
Expansion of full-service offering in all our markets
Regional expansion and follow our friends strategy
Organic growth
strategy
Broadening and balancing global footprint of Bilfingers presence, including emerging markets
Further completing Bilfingers service offering along the value chain
External growth
strategy
page 12

External growth by segment page 13
Industrial:
Regional expansion: Europe, Asia, Turkey,
Middle East and USA
Oil and Gas sector; E, I & C
Building and Facility:
German targets only with potential for sustainable, high
margins
Gain critical mass in selected European countries
Power:
Regional expansion: Middle East, India, South-East-Asia
Expansion of technological scope
Market entry in renewable sector (e.g. solar thermal
energy, wind park maintenance)
Construction:
Smaller acquisitions to support growth in new higher-
margin activities
Financial capacity for acquisitions of up to 1 billion
Maintain M&A discipline: Earnings accretion and ROCE > WACC

Group targets 2016 page 14
All figures refer to continuing operations * Adjusted for divestment Nigeria ** Rating: BBB+ / stable outlook
2011 2016
397 m
~ 700 m
220 m
~ 400 m i.e. ~ 9 EPS
2011 2016
8.5 bn
11 to 12 bn
Output volume EBITA Net Profit
Organic Growth ROCE Dividend Policy Financial Ratios**
Output volume CAGR*
2011-2016: 3 - 5%
15 to 20% Sustainable dividend
development
Approx. 50% payout ratio
of normalized
net profit
2011 2016 2011 2016
4.7%
~ 6%
EBITA Margin
Adj. net debt
Adj. EBITDA < 2.5x
Total debt
Total capital < 40%
FFO
Adj. net debt >

Bilfinger: Entering new growth · PDF fileBilfinger: Entering new growth phase German...

Documents

Transcript of Bilfinger: Entering new growth · PDF fileBilfinger: Entering new growth phase German...