Bilfinger SE

Investor Presentation • Nov 16, 2023

Bilfinger SE

• Leading in Industrial Services -

QUARTERLY STATEMENT Q3 2023

November 13, 2023

Capital Markets Conference Call

Dr. Thomas Schulz, Group-CEO

Matti Jäkel, Group-CFO

ESG key figures Q3 2023 Occupational safety has high priority

1.18

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

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

"Zero" is possible

Stable orders received at E&M Europe and Technologies, in total decrease due to repositioning in USA

Revenue [€ million]

• Orders received mixed: stable at E&M Europe (+2 org.) and Technologies (-1% org.), lower level at E&M International (-42% org. / -€96 million) due to repositioning in USA
• Book-to-bill of 0.92 in Q3 / 1.06 in the first nine months
• Increase in revenue with double-digit growth at E&M Europe and Technologies, lower at E&M International, as planned

∆ abs. / org.

Selected orders

Oil & Gas CNR International North Sea, UK E&M Europe

Major MMO services framework agreement for 3 offshore platforms under the joint venture Torus BGP

Hydropower Ignitis Gamyba Kruonis, Lithuania E&M Europe

Market expansion: First hydropower order in the Baltic States thanks to Europe-wide unique fullservice offer

Biopharma

Northern Europe Technologies

Design-build piping package in the multimillion € range as part of extensive project portfolio for global pharma group

Innovation: Energy efficiency calculations with Rotalysis

Cost-effective and easy-to-use digital solution for optimizing pump operations

Customer Order

• Digital solution to support optimal speed of pumps for maximum efficiency and performance
• Reduce costs and CO2 emissions

Bilfinger Solution

• Tailored recommendations for each asset
• Optimizing pump speed or mechanical adjustment of impeller diameter
• Easy implementation and fast amortization

Sustainability effects

Energy consumption and therefore CO² footprint can be reduced for 80 % of the pumps installed in industry

6 Bilfinger SE | Quarterly Statement Q3 2023 | November 13, 2023

Efficiency program On track and fully effective as of January 2024

	Target as of January 1, 2024	Thereof achieved by September 30, 2023	Thereof achieved in Q3 2023
Capacity reductions	- 750 FTEs	- 452 FTEs	- 201 FTEs
One-time costs	- €62 million	- €6.4 million	- €3.1 million
EBITA improvement gross p.a. (from January 1, 2024 – Run-rate)	+ €55 million	+ €34.7 million	+ €15.4 million
Re-invest in Education & Training	- €13 million	€0 million	€0 million

• Ongoing (non-provisionable) costs for the realization of the program: YTD 2023 €3.6 million, in Q3 2023 €0.2 million
• Baseline as of January 1, 2022

Significant jump in EBITA margin to more than 5% Increase in all three segments

EBITA [€ million, %]

Gross profit and margin improved compared to prior year SG&A costs with first effects from efficiency program, good cost discipline offsets inflation effects

Gross profit [€ million, %]

SG&A expenses [€ million, %]

P&L development

Q3/22

Q3/23

• EBITA significantly increased
• No special items in the current quarter
• Net profit thus significantly higher than prior year
• Earnings per share with lower average number of shares (37.5 million, prior year: 39.3 million), share buyback in prior year

Free cash flow close to prior-year level

Q3/22 Q4/22 Q1/23 Q2/23 Q3/23

Net Trade Assets / DSO / DPO

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

∆ abs. / org.

EBITA [€ million, %]

core industries.

13 Bilfinger SE | Quarterly Statement Q3 2023 | November 13, 2023

14 Bilfinger SE | Quarterly Statement Q3 2023 | November 13, 2023

E&M International: Middle East with positive development, restructuring in USA impacts performance, EBITA >0

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

∆ abs. / org.

Technologies: Stable orders received; revenue with significant increase, EBITA margin also significantly improved

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

∆ abs. / org.

95%

Projects

5%

Frame and service contracts

50%

Pharma & Biopharma

Chemical & Petrochemical

10%

15 Bilfinger SE | Quarterly Statement Q3 2023 | November 13, 2023

1) Includes different industries outside the defined core industries.

Oil & Gas

Other1)

30%

5%

5%

Energy

Overall stable market situation

▪ Energy transition: new technology and improvement in energy efficiency

• Increasing investments in green energy, decisionmaking process has partly slowed down
• Nuclear power revival

• Extension of the lifetime of conventional power plants

• Continued high demand in the healthcare sector

• Localization of supply chains
• Speed of investment increase normalizes
• Unchanged good demand for maintenance and service

Pharma & Biopharma | ~10% Oil & Gas | ~15%

▪ Maintenance activities remain at good level, with regional differences

• Increased necessity for efficiency improvement in the production process
• Ongoing investment projects continue to progress, decisionmaking process has partly slowed down
• Resource transition and energy transition
• Market skeptical about German economy
• Global oil and gas demand remains at a high level, therefore investment and maintenance in existing infrastructure
• New investment including LNG plants, hydrogen transport, carbon capture infrastructure, decision-making process has partly slowed down

Group outlook FY 2023 confirmed

	Actual FY 2022	Outlook FY 2023	YTD 2023
Revenue	€4,312 million	€4,300 to €4,600 million	€3,290 million
EBITA margin	1.8% (3.2%1))	3.8 to 4.1%	3.7%
Free cash flow	€136 million	€50 to €80 million2)	-€12 million

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

17 Bilfinger SE | Quarterly Statement Q3 2023 | November 13, 2023

Quarterly Statement Q3 2023

FINANCIAL BACKUP

[€ million]	Q3/23	Q3/22	∆ in %	YTD/23	YTD/22	∆ in %
Revenue	1,117.4	1,075.0	+4%	3,290.3	3,114.3	+6%
Gross profit	122.8	114.1	+8%	339.5	315.8	+8%
Selling and administrative expenses	-70.0	-78.1	-10%	-220.4	-228.3	-3%
Impairment losses and reversal of impairment losses (as per IFRS 9)	-1.0	-0.8	-	-1.7	-2.8	-
Other operating income and expense	4.2	0.7	+529%	1.2	-9.5	- 1
Income from investments accounted for using the equity method	0.8	0.8	-1%	3.1	2.6	+22%
Earnings before interest and taxes (EBIT)	56.8	36.6	+55%	121.8	77.8	+57%
Amortization of int. assets from acquisitions and goodwill impairments (IFRS 3)	0.0	0.0	-	0.0	0.0	-
Earnings before interest, taxes and amortization of intangible assets (EBITA)	56.8	36.6	+55%	121.8	77.8	+57%
Special items in EBITA	0.0	-0.1	-	-0.2	-10.1	-
Depreciation PP&E	20.3	24.8	-18%	68.6	73.0	-6%
thereof depreciation of right-of-use assets from leases	12.9	12.9	0%	38.1	36.9	+3%
Earnings before interest, taxes, depreciation and amortization (EBITDA)	77.1	61.4	+26%	190.5	150.7	+26%
Financial result	-7.8	-7.0	-	-19.4	-19.3	-
Earnings before taxes (EBT)	48.9	29.6	+65%	102.4	58.5	+75%
Income taxes	-11.3	-6.8	-	-26.9	-22.9	-
Earnings after taxes EAT (continuing operations)	37.6	22.8	+65%	75.4	35.5	+112%
Earnings after taxes EAT (discontinued operations)	0.1	-0.4	-	0.0	0.7	-99%
Minority interests	-0.9	-0.3	-	-2.3	-1.8	-
Net profit	36.7	22.0	+67%	73.2	34.5	+112%
For information: adjusted Net profit	0.98	0.56	+75%	1.95	0.86	+128%
Earnings before interest, taxes, depreciation and amortization (EBITDA)	34.8	21.3	+63%	72.6	48.3	+50%

In the prior year, restructuring expenses for phase-out of the Russian business -9 1

E&M Europe										Reconciliation Group
				E&M International			Technologies			HQ / Consolidation / Other			Other Operations			Group
[Mio. €]	Q3/23	Q3/22	Δ in %	Q3/23	Q3/22	Δ in %	Q3/23	Q3/22	Δ in %	Q3/23	Q3/22	Δ in %	Q3/23	Q3/22	Δ in %	Q3/23	Q3/22	Δ in %
Orders received	670	667	0%	127	223	-43%	185	187	-1%	-6	-11	-	54	51	+7%	1,030	1,118	-8%
Order backlog	1,989	1,772	+12%	550	591	-7%	746	726	+3%	-30	-37	-	122	160	-23%	3,378	3,211	+5%
Revenue	741	676	+10%	166	218	-24%	185	153	+21%	-20	-13	-	45	41	+9%	1,117	1,075	+4%
SG&A	-39	-40	-1%	-12	-14	-14%	-13	-13	+3%	-3	-9	-63%	-2	-2	-20%	-70	-78	-10%
EBITDA	62	53	+16%	4	0	+850%	12	8	+49%	-5	-3	-	4	2	+84%	77	61	+26%
EBITDA margin	8.3%	7.9%		2.2%	0.2%		6.6%	5.4%		22.7%	21.7%		9.0%	5.3%		6.9%	5.7%
EBITA	44	37	+21%	2	-2	-	10	6	+67%	-3	-6	-	4	1	+157%	57	37	+55%
EBITA margin	6.0%	5.4%		1.0%	-0.9%		5.5%	4.0%		13.9%	44.9%		7.9%	3.4%		5.1%	3.4%
Special items EBITA	0	0	-	0	0	-	0	0	-	0	0	-	0	0	-	0	0	-
Amortization	0	0	-	0	0	-	0	0	-	0	0	-	0	0	-	0	0	-
Depreciation	-17	-17	-	-2	-2	-	-2	-2	-	2	-3	-	0	-1	-	-20	-25	-
Investments in PPE	7	11	-36%	1	1	0%	1	1	+9%	0	1	-	0	0	-	10	14	-31%
Increase in right-of use assets	2	12	-81%	0	1	-	0	2	-	1	1	-59%	0	0	-	4	16	-78%
Employees	20,784	21,361	-3%	5,136	6,350	-19%	2,038	2,089	-2%	401	454	-12%	718	1,025	-30%	29,077	31,279	-7%

	E&M Europe									Reconciliation Group
				E&M International				Technologies		HQ / Consolidation / Other			Other Operations			Group
[Mio. €]	YTD/23	YTD/22	Δ in %	YTD/23	YTD/22	Δ in %	YTD/23	YTD/22	Δ in %	YTD/23	YTD/22	Δ in %	YTD/23	YTD/22	Δ in %	YTD/23	YTD/22	Δ in %
Orders received	2,286	2,072	+10%	522	584	-11%	602	534	+13%	-33	-19	-	122	172	-29%	3,500	3,343	+5%
Order backlog	1,989	1,772	+12%	550	591	-7%	746	726	+3%	-30	-37	-	122	160	-23%	3,378	3,211	+5%
Revenue	2,175	2,036	+7%	508	562	-10%	548	416	+32%	-51	-45	-	109	145	-24%	3,290	3,114	+6%
SG&A	-121	-118	+2%	-40	-41	-1%	-40	-38	+6%	-13	-24	-47%	-6	-7	-14%	-220	-228	-3%
EBITDA	159	137	+16%	0	3	-	30	15	+95%	-8	-14	-	10	10	-1%	190	151	+26%
EBITDA margin	7.3%	6.7%		0.0%	0.5%		5.4%	3.7%		15.2%	31.4%		9.1%	6.9%		5.8%	4.8%
EBITA	108	87	+24%	-7	-4	-	24	9	+152%	-12	-23	-	9	8	+12%	122	78	+57%
EBITA margin	5.0%	4.3%		-1.3%	-0.6%		4.3%	2.3%		23.0%	50.6%		7.8%	5.3%		3.7%	2.5%
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	-51	-50	-	-6	-6	-	-6	-6	-	-4	-9	-	-1	-2	-	-69	-73	-
Investments in PPE	37	30	+25%	3	2	+54%	3	3	+17%	0	1	-	1	1	-23%	45	37	+22%
Increase in right-of use assets	20	20	0%	1	3	-64%	1	4	-64%	2	4	-46%	0	0	-	25	31	-20%
Employees	20,784	21,361	-3%	5,136	6,350	-19%	2,038	2,089	-2%	401	454	-12%	718	1,025	-30%	29,077	31,279	-7%

Consolidated Balance Sheet: Assets

	[€ million]	9/30/23	6/30/23	∆ in %	9/30/23	12/31/22	∆ in %
Non-current assets		1,271.7	1,272.8	0%	1,271.7	1,261.9	+1%
Intangible assets		793.5	787.7 1	+1%	793.5	786.5	+1%
Property, plant and equipment		256.9	254.4	+1%	256.9	246.2	+4%
Right of use assets from leases		171.1	175.6	-3%	171.1	173.2	-1%
Investments accounted for using the equity method		11.9	13.5	-12%	11.9	12.7	-7%
Other financial assets		7.0	7.3	-5%	7.0	7.3	-5%
Deferred taxes		31.5	34.4	-8%	31.5	35.9	-12%
Current assets		1,999.3	1,912.1	+5%	1,999.3	1,790.1	+12%
Inventories		84.9	86.1	-1%	84.9	80.8	+5%
Receivables and other financial assets		1,221.3	1,176.1	+4%	1,221.3	1,078.5	+13%
Current tax assets		13.4	11.1	+20%	13.4	7.3	+84%
Other assets		61.0	58.4	+4%	61.0	35.2	+73%
Securities		0.0	0.0	-	0.0	0.0	-
Marketable securities		190.3	15.1	+1158%	190.3	14.9	+1177%
Cash and cash equivalents			2
Assets classified as held for sale		428.5	2 565.3	-24%	428.5	573.4	-25%
		0.0	0.0	-	0.0	0.0	-
Total		3,271.1	3,184.9	+3%	3,271.1	3,052.0	+7%

1 Goodwill slightly increased to 790 (12/22:783)

Asset swap: fixed term deposit of the liquidity from promissory note loan ²

[€ million]	9/30/23	6/30/23	∆ in %	9/30/23	12/31/22	∆ in %
Equity	1,108.5	1,047.6 1	+6%	1,108.5	1,078.2	+3%
Equity attributable to shareholders of Bilfinger SE	1,101.2	1,054.9	+4%	1,101.2	1,087.9	+1%
Attributable to minority interests	7.3	-7.3	-	7.3	-9.7	-	Slight increase in balance sheet total, slight 1 decrease in equity ratio (34%; 12/31:35%)
Non-current liabilities	572.1	593.1	-4%	572.1	655.7	-13%
Provisions for pensions and other obligations	227.6	247.0 2	-8%	227.6	238.7	-5%	2 Decrease due to increase in interest rate
Other Provisions	17.3	17.3	0%	17.3	17.3	0%
Financial debt	308.5	313.3	-2%	308.5	3 388.9	-21%	Already in Q2, new promissory note loan to
Other liabilities	0.1	0.2	-50%	0.1	0.0	-	the non-current liabilities (175) and 3
Deferred taxes	18.6	15.3	+21%	18.6	10.8	+71%	reclassification of bond 06/2024 to the current liabilities (249)
Current liabilities	1,590.6	1,544.2	+3%	1,590.6	1,318.2	+21%
Current tax liabilities	29.5	26.1	+13%	29.5	29.7	0%
Other provisions	217.5	215.7	+1%	217.5	238.8	-9%
Financial debt	305.7	299.8	+2%	305.7	3 54.7	+459%
Trade and other payables	824.7	798.9	+3%	824.7	787.0	+5%
Other liabilities	213.2	203.6	+5%	213.2	208.1	+2%
Liabilities classified as held for sale	0.0	0.0	-	0.0	0.0	-
Total	3,271.1	3,184.9	+3%	3,271.1	3,052.0	+7%

Slight increase in balance sheet total, slight decrease in equity ratio (34%; 12/31:35%) 1

Already in Q2, new promissory note loan to the non-current liabilities (175) and reclassification of bond 06/2024 to the current liabilities (249) 3

Net liquidity Cash flow development excluding IFRS 16

1) Including IFRS 16 leases

Net liquidity1) [€ million] Cash flow development year-to-date excl. IFRS 16 [€ million]

	9m 2023 excl. IFRS 16	IFRS 16 impacts	9m 2023 incl. IFRS 16	6m 2022 excl. IFRS 16
EBITA	128		128	78
Depreciation	30	39	69	35
Change in NWC	-152		-152	-101
Others	-7	3	-4	7
Special Items	-11		-11	-16
Operating CF	-12		30	3
Net CAPEX	-42		-42	-30
Free CF	-54		-12	-27
Proceeds/Investments financial assets	-13		-13	0
Share buyback program	0		0	-70
Changes in marketable securities	-175		-175	140
Dividends	-49		-49	-194
Change in financial debt	175	-38	137	-11
Interest paid	-19	-4	-23	-17
FX / other / DiscOp	-10		-10	-2
Change in Cash	-145		-145	-181

Consolidated Statement of Cash Flows [1/2]

[€ million]	Q3/23	Q3/22	∆ in %	YTD/23	YTD/22	∆ in %
EBITDA	77.1	61.4	+26%	190.5	150.7	+26%
Change in advance payments received	-7.8	29.0	-	-9.7	19.3	-
Change in trade receivables	-19.2	3.5	-	-117.6	-150.5	-
Change in trade payables and advance payments made	-2.8	15.2	-	26.3	85.9	-69%
Change in net trade assets	-29.8	47.8	-	-101.0	-45.3	-
Change in current provisions	1.7	-3.6	-	-16.5	-18.9	-
Change in other current assets (including other inventories) and liabilities	22.4	-17.8	-	-28.2	-36.5	-
Change in working capital	-5.7	26.4	-	-145.7	-100.7	-
Change in non-current assets and liabilities	-4.9	-5.3	-	-6.3	-4.0	-
Gains / losses from disposal of non-current assets	-0.6	-4.3	-	-1.1	-5.5	-
Income from investments accounted for using the equity method	-0.8	-0.9	-	-3.1	-2.7	-
Dividends received	2.7	1.4	+99%	3.9	3.0	+30%
Interest received	4.6	1.0	+349%	11.7	2.3	+411%
Income tax payments	-2.6	1.6	-	-19.7	-1.2	-
Operating cash flow (OCF)	69.6	81.3	-14%	30.2	41.9	-28%
Investments in property, plant and equipment and intangible assets	-9.5	-13.8	-	-44.5	-36.5	-
Payments received from the disposal of P, P & E and intangible assets	0.6	1.3	-54%	2.4	6.5	-62%
Net cash outflow for P, P & E and intangible assets (net capex)	-8.9	-12.5	-	-42.1	-30.1	-
Free cash flow (FCF)	60.7	68.8	-12%	-11.9	11.8	-
thereof special items in free cash flow	-4.4	-3.5	-	-11.3	-15.4	-

Consolidated Statement of Cash Flows [2/2]

[€ million]	Q3/23	Q3/22	∆ in %	YTD/23	YTD/22	∆ in %
Free Cash Flow (FCF) [Übertrag]	60.7	68.8	-12%	-11.9	11.8	-
Proceeds from / payments made for the disposal of financial assets	-0.7	0.0	-	-0.6	0.0	-
Investments in financial assets	0.0	0.0	-	-12.6 2	-0.1	-
Changes in marketable securities	-175.0	0.0	-	-175.0	140.0	-
- Share buyback	0.0	-70.4 1	-	0.0	-70.4	-
- Dividends	-1.9	0.0	-	-51.5	-195.6 3	-
- Share buyback (including Changes in ownership interest without change in control)	-0.3	-0.4	-	-0.3	-0.5	-
- Borrowing	0.0	-0.1	-	175.0 4	-0.1	-	3 4
- Repayment of financial debt	-13.1	-13.1	-	-38.4	-47.5	-
- Interest paid	-3.4	-3.5	-	-22.7	-20.2	-
Cash flow from financing activities of continuing operations	-18.7	-87.4	-	62.1	-334.3	-
Change in cash and cash equivalents of continuing operations	-133.7	-18.7	-	-137.9	-182.5	-
Change in cash and cash equivalents of discontinued operations	-3.8	-0.3	-	-4.6	-0.2	-
Change in value of cash and cash equivalents due to changes in foreign exchange rates	0.7	0.0	-	-2.4	1.5	-
Change in cash and cash equivalents	-136.7	-19.0	-	-144.9	-181.2	-
Cash and cash equivalents at January 1 / July 1	565.3	480.6	18%	573.4	642.9	-11%
Change in cash and cash equivalents of assets classified as held for sale	0.0	0.0	-	0.0	0.0	-
Cash and cash equivalents at September 30	428.5	461.7	-7%	428.5	461.7	-7%

1 No share buyback in this quarter

2 Acquisition of De Bruin in Q1/23

3 Special dividend in prior year

Begebung Schuldscheindarlehen (175) zur Refinanzierung Anleihe 06/2024 3 Issuance of promissory note loan (175) to refinance bond 06/2024

Disclaimer

This presentation has been produced for support of oral information purposes only and contains forwardlooking 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.