Bilfinger SE

Quarterly Report • May 11, 2023

BILFINGER SE

• LEADING IN INDUSTRIAL SERVICES -

Quarterly Statement Q1 2023

May 11, 2023

Hydropower: ÖBB - Obervellach/Tauernmoos

Key highlights Q1 2023

ESG key figures Q1 2023 Occupational safety has high priority

TRIF: Total Recordable Incident Frequency [based on 1 million working hours]

LTIF: Lost Time Injury Frequency [based on 1 million working hours]

Orders received and revenue significantly above prior year

• Significantly double-digit increase in orders received, includes among others positive effects from new major orders, inflation-related price adjustments and higher sales expectations for framework agreements
• Increase in revenue in all segments, partly benefiting from a mild winter

Revenue [€ million] Revenue split [YTD, %]

∆ abs. / org.

Selected contracts

Water treatment Ministry of Electricity and Water Kuwait E&M International

Frame contract for delivery & installation of spare parts for filtration membranes

Energy transition München, Germany E&M Europe

© SWM/SCG Architekten

Design, delivery and installation of highefficiency 2-zone heat accumulators incl. pipelines

Carbon Capture

Aker Carbon Capture / Heidelberg Materials Norway E&M Europe

piping and insulation for full scale CO² capture facility in the cement industry

Innovations: mobile acoustic cameras Fast and reliable detection of leakages

• Identification of leakage among others from equipment, flange gasket or valves during operation and high noise levels
• Increasing efficiency

Bilfinger solution

• Identification of leakages with the help of mobile acoustic cameras
• Subsequent evaluation, prioritization and remediation of leakages

Already in use with customers

Bilfinger contribution

• ~30 % lower costs on compressed air
• Efficient implementation during ongoing plant operation
• Improvement of occupational safety

Sustainability effects

• Reduction of uncontrolled gas emissions into the environment
• Increasing the energy efficiency of plants

Efficiency program Fully effective as of January 2024

	Targeted [full-year] effect		Reported effect Year-to-date 2023	Reported effect in Q1 2023
Headcount reductions	- 750 FTEs		- 26 FTEs	- 26 FTEs
One-time costs	- € 62 million		- € 0.4 million	- € 0.4 million
EBITA improvement gross p.a.	+ € 55 million	Run-rate	+ € 2.4 million	+ € 2.4 million
Re-invest in Education & Training	- € 13 million		- € 0 million	- € 0 million

Ongoing (non-provisionable) costs for the realisation of the program: Q1 2023 € 1.9 million

Financial highlights Q1 2023

P&L development

[€ million]	Q1/ 2023	Q1/ 2022	Δ in %
Orders received	1,385	1,117	+24%
Revenue	1,053	961	+10%
Gross profit	100	95	+6%
Selling and administrative expenses	-78	-74	+5%
EBITA	22	9	+148%
thereof special items	0	-10	-
EBITA margin	2.1 %	0.9%
Financial result	-6	-7	-
Income taxes	-8	-7	-
Earnings after taxes (continuing operations)	7	-5	-
Earnings after taxes (discontinued operations)	0	0	-
Net profit	7	-6	-
Earnings per share1) (in €)	0.18	-0.16	-

• No special items in the current quarter, in the prior year restructuring expenses Russian business
• EBITA margin stable at 2.1% (prior year adjusted for special items: 2.0%)
• Higher tax rate due to noncapitalization of loss carryforwards
• Net profit positive and above prior year

1) Non-diluted

Gross profit slightly increased Lower SG&A ratio due to increase in revenue

SG&A expenses [€ million, %]

EBITA [€ million, %]

Cash flow improved year-on-year, but seasonally negative Only small increase in net trade assets since the beginning of the year

Net Trade Assets / DSO/DPO

E&M Europe: Positive effect on orders received among others from inflation-related price increases and higher sales expectations for framework agreements

EBITA [€ million, %]

Revenue [€ million] Revenue split [YTD, %]

E&M International: Orders received remains on a high level, EBITA still negative due to legacy contracts and lower utilization in the loss-making part of the US business

∆ abs. / org.

159 186 ^{218 236} 171 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 +7%/+3% Revenue [€ million] Revenue split [YTD, %]

EBITA [€ million, %]

1) Includes different industries outside the defined core industries, here especially consumer goods and public clients

Technologies: High increase in revenue mainly due to biopharma projects, EBITA margin also significantly improved

EBITA [€ million, %]

Market development unchanged

Continued positive demand despite challenges for the industry

• Energy transition: new technology and improvement in energy efficiency
• Nuclear power revival

Energy Chemicals & Petrochem

• Resource transition
• Energy transition

• Increased necessity for efficiency improvement in the production process

• Increasing health care demand

• Localization of supply chains

Pharma & Biopharma Oil & Gas

• Investment in brown field infrastructure
• New investment e.g. LNG, hydrogen, carbon capture

	Actual FY 2022	Outlook FY 2023	YTD 2023
Revenue	€4,312 million	€4,300 to €4,600 million	€1,053 million
EBITA margin	1.8% (3.2%1))	3.8 to 4.1%	2.1 %
Free cash flow	€136 million	€50 to €80 million2	- €26 million

1) adjusted by special items 2) incl. ~€60m cash-out for Efficiency Program

Key highlights Q1 2023

Quarterly Statement Q1 2023 Financial backup

								Reconciliation Group
	E&M Europe			E&M International		Technologies		HQ / Consolidation / Other			Other Operations			Group
[€ million]	Q1/23	Q1/22	Δ in %	Q1/23	Q1/22	Δ in %	Q1/23	Q1/22	Δ in %	Q1/23	Q1/22	Δ in %	Q1/23	Q1/22	Δ in %	Q1/23	Q1/22	Δ in %
Orders received	922	736	+25%	241	163	+48%	193	173	+11%	-5	-6	-	34	52	-34%	1,385	1,117	+24%
Order backlog	2,098	1,874	+12%	607	503	+21%	705	665	+6%	-32	-50	-	113	138	-18%	3,491	3,130	+12%
Revenue	683	635	+8%	171	159	+7%	178	124	+43%	-14	-14	-	35	57	-39%	1,053	961	+10%
SG&A	-41	-39	+5%	-13	-13	+6%	-16	-13	+20%	-6	-7	-19%	-2	-2	-13%	-78	-74	+5%
EBITDA	41	29	+43%	-4	1	-	7	2	+308%	-3	-3	-	4	3	+9%	46	32	+41%
EBITA	25	13	+95%	-6	-1	-	5	0	-	-6	-6	-	3	2	+23%	22	9	+148%
Special items EBITA	0	-10	-	0	0	-	0	0	-	0	0	-	0	0	-	0	-10	-
Amortization	0	0	-	0	0	-	0	0	-	0	0	-	0	0	-	0	0	-
Depreciation	-16	-16	-	-2	-2	-	-2	-2	-	-3	-3	-	0	-1	-	-24	-24	-
Investments in PPE	9	8	+15%	1	0	-	1	1	+23%	0	0	-	0	0	-	12	9	+23%
Increase in right-of use assets	14	5	+181%	0	0	-	0	1	-	1	1	-14%	0	0	-	15	6	+132%
Employees	21,068	20,948	+1%	5,182	5,895	-12%	2,078	2,045	+2%	431	465	-7%	755	996	-24%	29,514	30,349	-3%

[€ million]	Q1/23	Q1/22	Δ in %
Revenue	1,053.2	960.8	+10%
Gross profit	100.3	94.9	+6%
Selling and administrative expenses	-77.7	-74.2	+5%
Impairment losses and reversal of impairment losses (as per IFRS 9)	0.0	1 -3.0	-
Other operating income and expense	-2.1	-9.8 2	-	1
Income from investments accounted for using the equity method	1.2	0.8	+44%
Earnings before interest and taxes (EBIT)	21.7	8.8	+148%
Amortization of int. assets from acquisitions and goodwill impairments (IFRS 3)	0.0	0.0	-	2
Earnings before interest, taxes and amortization of intangible assets (EBITA)	21.7	8.8	+148%
Special items in EBITA	-0.3	-10.2	-
Depreciation PP&E1)	23.9	23.5	+1%
Earnings before interest, taxes, depreciation and amortization (EBITDA)	45.5	32.3	+41%
Financial result	-6.2	-7.0	-
Earnings before taxes (EBT)	15.5	1.7	+791%
Income taxes	-8.0 3	-6.9	-
Earnings after taxes EAT (continuing operations)	7.5	-5.2	-
Earnings after taxes EAT (discontinued operations)	0.0	-0.3	-
Minority interests	-0.8	-1.0	-
Net profit	6.7	-6.5	-

Prior year included impairment on receivables Russia -1

Prior year included restructuring expense for phase-out of Russian business -9

Increased tax rate due to non-capitalization of loss carryforwards ³

1) thereof depreciation of right-of-use assets from leases in the quarter €12.4 million (PY: €11.7 million)

Consolidated Balance Sheet: Assets

[€ million]	03/31/2023	12/31/2022
Non-current assets
Intangible assets	788.5	786.5
Property. plant and equipment	244.3	246.2
Right of use assets from leases	180.3	173.2
Investments accounted for using the equity method	13.7	12.7
Other financial assets	7.3	7.3
Deferred taxes	34.8	35.9
	1,269.0	1,261.9
Current assets
Inventories	87.4	80.8
Receivables and other financial assets	1,116.0	1,078.5
Current tax assets	10.3	7.3
Other assets	57.9	35.2
Securities	0.0	0.0
Marketable securities	15.0	14.9
Cash and cash equivalents	515.9	573.4
Assets classified as held for sale	0.0	0.0
	1,802.5	1,790.1
Total	3,071.5	3,052.0

Consolidated Balance Sheet: Equity & liabilities

[€ million]	03/31/2023	12/31/2022
Equity
Equity attributable to shareholders of Bilfinger SE	1,082.2	1,087.9
Attributable to minority interest	-8.3	-9.7
	1,073.8	1,078.2
Non-current liabilities
Provisions for pensions and similar obligations	244.0	238.7
Other provisions	17.2	17.3
Financial debt	394.2	388.9
Other liabilities	0.0	0.0
Deferred taxes	12.4	10.8
	667.7	655.7
Current liabilities
Current tax liabilities	29.3	29.7
Other provisions	228.6	238.8
Financial debt	57.5	54.7
Trade and other payables	809.1	787.0
Other liabilities	205.4	208.1
Liabilities classified as held for sale	0.0	0.0
	1,329.9	1,318.2
Total	3,071.5	3,052.0

Balance Sheet – Overview of Assets and Liabilities

Material asset positions

• Goodwill increases to 785 (12/22: 783)
• Non-current assets include property, plant and equipment 244, right-of-use assets from leases according to IFRS 16 180, deferred tax assets 35
• Current assets includes trade receivables 573 (12/22: 605)

12/31/2022 03/31/2023

Material liability positions

• Equity: Slight increase in total liabilities with unchanged equity ratio
• Pension provisions: unchanged interest rate in the Euro zone
• Financial debt mainly relates to the bond 06/2024 with 258, promissory note with 6 and leasing liabilities in the amount of 186
• Other non-current liabilities include deferred tax liabilities (12) and other accruals (17) mainly for longterm personnel obligations
• Current liabilities mainly relate to liabilities of 1,014 (12/22: 995), including 434 (12/22: 428) from trade payables and payments received 224 (12/22: 215)

Net liquidity Cash flow development excluding IFRS 16

Net liquidity¹ 1 Including IFRS 16 leases

[€ million] Cash flow development year-to-date excl. IFRS 16 [€ million]

	3m 2023 excl. IFRS 16	IFRS 16 impacts	3m 2023 incl. IFRS 16	3m 2022 excl. IFRS 16
EBITA	22		22	9
Depreciation	10	14	24	11
Change in NWC	-56		-56	-104
Others	-1	0	-1	10
Special Items	-4		-4	-6
Operating CF	-29		-15	-80
Net CAPEX	-11		-11	-9
Free CF	-40		-26	-89
Proceeds/Investments financial assets	-13		-13	0
Share buyback program	0		0	0
Changes in marketable securities	0		0	0
Dividends	0		0	0
Change in financial debt	0	-13	-13	0
Interest paid	-3	-1	-4	0
FX / other / DiscOp	-2		-2	-1
Change in Cash	-58		-58	-90

Consolidated Statement of Cash Flows

	[€ million]	Q1/23	Q1/22	∆ in %
EBITDA		45.5	32.3	+41%
Change in advance payments received		-0.8	-4.0	-
Change in trade receivables		-16.7	-111.7	-
Change in trade payables and advance payments made		3.7	14.0	-74%
Change in net trade assets		-13.8	-101.7	-
Change in current provisions		-7.9	-3.5	-
Change in other current assets (including other inventories) and liabilities		-33.9	0.8	-
Change in working capital		-55.6	-104.4	-
Change in non-current assets and liabilities		2.9	6.7	-58%
Gains / losses from disposal of non-current assets		-0.5	0.1	-
Income from investments accounted for using the equity method		-1.2	-0.8	-
Dividends received		0.0	0.8	-100%
Interest received		2.7	0.0	-
Income tax payments		-9.1	-1.8	-
Operating cash flow (OCF)		-15.3	-67.1	-
Investments in property, plant and equipment and intangible assets		-11.6	-9.4	-
Payments received from the disposal of P, P & E and intangible assets		0.5	0.4	+29%
Net cash outflow for P, P & E and intangible assets (net capex)		-11.1	-9.1	-
Free cash flow (FCF)		-26.4	-76.2	-
thereof special items in free cash flow		-3.8	-5.7	-

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. Such statements made within this document are based on plans, estimates and projections as they are currently available to Bilfinger SE. Forward-looking statements are therefore valid only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Apart from this, a number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in worldwide financial markets as well as the factors that derive from any change in worldwide economic development.

This document does not constitute any form of offer or invitation to subscribe for or purchase any securities. In addition, the shares of Bilfinger SE have not been registered under United States Securities Law and may not be offered, sold or delivered within the United States or to US persons absent registration under or an applicable exemption from the registration requirements of the United States Securities Law.