BILFINGER SE INTO SUSTAINABLE PROFITABLE GROWTH
Thomas Schulz | Group CEO
Matti Jäkel | Group CFO
June 12, 2024
Capital Markets Day 2024
NO. 1 FOR OUR CUSTOMERS IN ENHANCING EFFICIENCY & SUSTAINABILITY
Strategy
No. 1 for our customers in enhancing efficiency & sustainability
Positioning | Years |
… | |
2027 | |
Bilfinger
Future
2025 |
FY 2023
+7%
2023 4.3%
78%
Bilfinger
CMD
2023 EfficiencyProgram ✓ Q4 2023
CMD 2024
- Strategy
- Cash
- Stork
Q2 2024
2025/2027
4-5% CAGR
6-7%
>80%
Q4 2024 | … | Quarters |
Operational Excellence
2 Bilfinger | Capital Markets Day 2024 | June 12, 2024
Growth | EBITA margin | Cash Conversion | ||
Agenda
Capital Markets Day 2024
Morning SessionsAfternoon Sessions
Into Sustainable Profitable Growth | Driving Market Expansion |
Jürgen Liedl, President E&M Europe | |
Thomas Schulz, Group Chief Executive Officer | |
Matti Jäkel, Group Chief Financial Officer | Transformation into Core Service Business |
Christian Rugland, President E&M International |
The Perfect Fit: Bilfinger & Stork | Leveraging Trends for Growth |
Jürgen Liedl, President E&M Europe | Thorsten Hoppe, President Technologies |
03:30 - 04:30 PM
Joint visit of Bilfinger ACHEMA booth
Leading Engineering and Maintenance in Energy Transition
Massimo Pardocchi and Oksana Roman
3 Bilfinger | Capital Markets Day 2024 | June 12, 2024
Bilfinger Company Profile
Consultancy | Engineering | New Builds | Maintenance & Turnarounds |
& Modifications | |||
Digitalization |
83%
Engineering & Maintenance
17%
Technologies
~€5 bn
revenue
>90%
customer
retention rate
>30,000
employees
~65%
frame- and
service contracts
Europe
BeNe | DACH | Eastern Europe | Nordic | UK
Energy Transition | Life Science | Nuclear
International
North America | Middle East
~80%
similar business
across all industries
>90%
revenue in
sustainable services
Industries | ||||
Energy | Chemicals & | Pharma & | Oil & Gas | Adjacent |
Petrochemicals | Biopharma | Industries | ||
No. 1 for our customers in enhancing efficiency & sustainability
>140
years of
expertise
MDAX
listed in Germany
>30
countries
active in
Asset-light
service
provider
4 Bilfinger | Capital Markets Day 2024 | June 12, 2024
Trends and drivers
Market trends provide tailwind for Bilfinger business model
Outsourcing
Volatility
Overregulation
Efficiency
Bilfinger's business
Sustainability
Decomplexing
model benefits
Labor shortage | Competence transfer |
from both growing
Climate change
Digitalization
Energy costs
as well as declining
Artificial Intelligence
…
…
markets
5 Bilfinger | Capital Markets Day 2024 | June 12, 2024
Our industries
Stable to positive market across all regions and industries, increased demand for outsourcing due to volatile environment
Addressable markets
[USD bn]
Bilfinger
CAGR 2024 to 2025/27
Outsourcing potential
Energy
62
~2%
Good /
Stable
Chemicals & | Pharma & | Oil & | ||
Petrochemicals | Biopharma | Gas | ||
34 | 21 | 22 |
~1.5% | ~3% | ~2% |
CAGR in addressable markets: ~2% | ||
Good / | Good / | Good / |
Increasing | Increasing | Increasing |
Adjacent
Industries
>50
© Audrey - stock.adobe.com
~2%
Good /
Stable
6 Bilfinger | Capital Markets Day 2024 | June 12, 2024
Attractive growth
Selective M&A on top of market and self-propelled growth
+7%
revenue
growth
2023
CAGR in | 2-3% | |||||
addressable | ||||||
market | 4-5% | |||||
▪ | Outsourcing | |||||
CAGR | ||||||
▪ | Offering | |||||
~2% | ||||||
▪ | Geography | |||||
M&A ▪ Funded by sound balance sheet
- Total Shareholder return and EPS accretion
- Attractive top-line and bottom- line contribution
- Driver of full line offering in our core regions
- Access to skilled labor
- Integrative
2022 | Market growth Self-propelled2023-2025/27 |
growth |
7 Bilfinger | Capital Markets Day 2024 | June 12, 2024
Strategic levers
Efficiency Program completed, focus on two strategic levers going forward
Capital Markets Day 2024 | |||||
Capital Markets Day 2023 | |||||
Efficiency | ✓ | Operational | |||
1. Program | Excellence | ||||
2. OperationalExcellence
3. Positioning | Positioning |
8 Bilfinger | Capital Markets Day 2024 | June 12, 2024
Operational Excellence
Strategic lever with internal focus: Continuously improving performance
Progress | KPI | |||||
Competence | Growth | ▪ | Build up training centers | Deep | ||
Profitability | ▪ | Standardized and certified trainings | ||||
Development | Dive | |||||
Cash | ▪ | Value based selling | ||||
Profitability | ▪ | High maturity level across regions and categories | ||||
Procurement | ▪ | Savings linked to P/L | ||||
Cash | ▪ | Digitalized procurement: data driven sourcing | ||||
Standardization | Growth | ▪ | Mapping requirement versus competence | |||
Profitability | ▪ | Contract selection and standardized execution | ||||
& Bundling | ||||||
Cash | ▪ | Standardized execution and bundled services | ||||
Profitability | ▪ | Standard product selection in standard processes | ||||
De-Risking | ▪ | Cash generation through standardization | ||||
Cash | ▪ From project to product business | |||||
Automation | Profitability | ▪ | Process Digitalization | |||
& Digitalization | Cash | ▪ | Bots and Automation solutions | |||
▪ | Artificial Intelligence |
9 Bilfinger | Capital Markets Day 2024 | June 12, 2024
Competence development
A key investment to increase the attractiveness to both employees and customers
Deep Dive
Investment in training
> 0.5%
of Revenue
p.a.
More upskilling
Higher attraction
Reduced labor shortage
Improved safety
& education
Increased digitalization
More standardization
Higher customer and employee attraction
10 Bilfinger | Capital Markets Day 2024 | June 12, 2024
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Disclaimer
Bilfinger SE published this content on 17 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 June 2024 08:09:01 UTC.
