Bilfinger 2020 - Back to Profitable Growth - Bilfinger SE | Capital Markets Day

 
Bilfinger SE | Capital Markets Day

Bilfinger 2020 – Back to Profitable Growth
Tom Blades (CEO), Dr. Klaus Patzak (CFO), Michael Bernhardt (CHRO)
February 14, 2017
Preliminary figures FY 2016
FY 2016: Highlights
    Sound performance in challenging environment

                 Orders received: decline in FY; Q4 above prior-year period with book-to-bill at 1

                 Adjusted EBITA: swing to positive €15 million after loss in prior year (€-23 million);
                 margin improvement despite substantial decline in output volume; restructuring taking hold

                 Net profit: capital gain from sale of Building and Facility results in a significant increase to €271 million

                 Cash flow from operating activities: Operating Cash flow significant below extraordinary high prior year;
                 net liquidity rises significantly due to proceeds from the sale

                 Balance sheet: stronger with substantially higher equity ratio

                 Dividend proposal1): €1 per share

                 Outlook 2017: further improvement of earnings at lower output volume
    1) subject to a corresponding resolution by the competent boards
Bilfinger SE | Capital Markets Day | February 14, 2017                                                                           page 3
Q4 2016:
    Current market situation in customer groups

               Chemical & Petrochemical
               • Stable demand for maintenance services in European markets
               • In the US slight revival of investing activities in Chemicals; signs of recovery in project business

               Pharma & Biopharma
               • Good demand for projects in biotech pharma, however generally limited willingness of customers to invest

               Oil & Gas
               • Maintenance budgets in UK and Scandinavia at a low level, however trough seems to be reached
               • Project business in the US shows first signs for possible recovery in mid-term future

               Energy & Utilities
               • Demand in project business remains low
               • Volume of services requested declining especially in Germany due to insufficient capacity utilization and
                 profitability of power plants
               • Stable demand in services business in Middle East and South Africa

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                       page 4
Q4 2016:
    Segment development in line with expectations

      Industrial

               Orders received slightly above prior-year quarter, book-to-bill exceeds 1

               Significantly lower output volume; EBITA margin (4.4 percent) above prior-year figure (3.6 percent)

               Restructuring taking hold, cost base decreasing

      Power

               Orders received in Q4 at prior-year level, however FY well below prior year, as expected. In view of the
               competition and price pressure, highly-selective approach in the German and international project business

               Output volume continues to decline significantly as planned; also low capacity utilization in some units impacted
               EBITA

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                             page 5
Expectations for FY 2016
    on Group targets fully met

                                                              Output volume                    EBITA adjusted

             in € million                                2016 expected        2016       2016 expected         2016

             Industrial                                   about 3,100     3,197         at prior-year level     120

                                                                                     significant improvement
             Power                                        about 1,000         967                               -30
                                                                                       over prior-year level

             Consolidation / Others                                            55       at prior-year level     -75

                                                                                     significant improvement
             Group                                        about 4,100     4,219                                 15
                                                                                       over prior-year level

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                page 6
Orders received in Q4 above prior-year level despite
    lower share of „large“ orders

                                                                       Development Orders Received
                                                                                      -6%/ -1%
                                                                                                     • Orders Received Q4:
                                               +6%/ +13%                           4,301    4,056      6% above Q4/15 (13% organic)

                    1,011           1,013            1,026              1,069
   Orders                                                      947
                                                                                                     • Book-to-bill in Q4 at 1
 received           691              810              742                816
     (m€)                                                       810
                   (68%)            (80%)            (72%)              (76%)
                                                               (86%)                                 • Order Backlog Q4:
                     320              203                284   137       253                           below prior year quarter due to Power
                    Q4/15            Q1/16           Q2/16     Q3/16    Q4/16      FY/15    FY/16
                     Act              Act             Act       Act      Act        Act      Act
                                                                                                     • Lower share of large orders in Q4

    Order
  backlog          2,902            2,849            2,677     2,603    2,618       2,902   2,618
     (m€)

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                         page 7
As expected, double-digit decline in output volume in Q4
    also due to tough comparable

                                                             Development Output Volume and Profitability
                                                                                  -16%/ -12%
                                             -19%/ -15%                                           • Output volume Q4: -19% (org. -15 %),
                 1,313                                                           5,003
                                                  1,097              1,058               4,219      as expected both segments with a
                                  1,044                      1,020
                  1.7%                                                                              decrease
                                                   0.2%              0.7%
                                                             2.1%                        0.4%     • EBITA adjusted in Q4 below prior year
                                  -1.4%                                      0   -0.5%
                                                                                                    and strong Q3, but positive in the full
                                                                                                    year
                  Q4/15           Q1/16            Q2/16     Q3/16   Q4/16       FY/15   FY/16
                   Act             Act              Act       Act     Act         Act     Act     • EBITA in Q4: Special items in the
                                                                                                    amount of € 56 Mio

  EBITA
    adj.            22              -15                  2    21       7         -23      15
   (m€)

  EBITA
   (m€)             -32             -54              -64     -53      -49        -157    -221

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                   page 8
Industrial:
    Orders received slightly above prior-year quarter, book-to-bill exceeds 1

                                                          -14%/-9%

                                                                                                        • Orders received: With € 885m +4%
                     3.6%                                                     5.1%            4.4%
                                                            3.7%                                          (org. +10%) against prior-year quarter
                      942
                                              788            834               761             814      • Book-to-bill >=1 in the fourth
                                                                                                          consecutive quarter
                                             1.8%
                                                                                                        • Significantly lower output volume
                    Q4/15                   Q1/16           Q2/16             Q3/16           Q4/16     • Adjusted EBITA margin (4.4 percent)
                      EBITA adj. Margin (%)              Output volume (m€)
                                                                               Y-o-Y
                                                                                        x/x
                                                                                              Organic     above prior-year figure (3.6 percent)
                                                                               growth         growth
                                                                                                        • Restructuring taking hold, cost base
    Book-                                                                                                 decreasing
    to-Bill          0.9                      1.0             1.0               1.0            1.1

   EBITA
                      34                       14             31                39              36
     adj.

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                             page 9
Power:
    Selective order intake in challenging markets

                                                         -39%/-34%

                                                                                                        • Orders received in Q4 at prior-year
                                                                                                          level, however FY well below prior year,
                   356
                                                                                                          as expected.
                   1.5%                    247              258                243             218
                                          -2.7%            -4.1%              -0.4%                     • In view of the competition and price
                                                                                              -5.5%       pressure, highly-selective approach
                                                                                                          in the German and international project
                  Q4/15                   Q1/16            Q2/16              Q3/16           Q4/16       business
                                                                               Y-o-Y          Organic
                                                                                        x/x
                     EBITA adj. Margin (%)               Output Volume (m€)    growth         growth    • Output volume continued to decline
                                                                                                          significantly as planned
    Book-
                     0.5                     0.9             0.7               0.6              0.8     • Low capacity utilization in some units
    to-Bill                                                                                               as well as weak project performance
                                                                                                          impacted EBITA adjusted

   EBITA
     adj.              6                     -7              -11                -1              -12

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                         page 10
SG&A costs reduced significantly, but ratio still well above
    benchmark

                                 Adjusted Gross Margin (m€)                          Adjusted SG&A (m€)

                                445
                              (8.9%)                       412
                                 14                      (9.8%)                         22
                                                                  17                                        47

                                431                                    Adjustments     -529                 -481
                                                           395
                              (8.6%)                                   Reported      (-10.6%)             (-11.4%)
                                                         (9.4%)

                                                                                                            -434
                                                                                       -507               (-10.3%)
                               FY 15                     FY 16                       (-10.1%)
                                Act                       Act
                                                                                      FY 15                FY 16
                                                                                       Act                  Act

Bilfinger SE | Capital Markets Day | February 14, 2017                                                               page 11
Operating cash flow significantly below extraordinary high prior year,
     also due to reversal effects

                                                                              1)
                Adjusted cash flow from operating activities (m€)                                                                             Net Profit (m€)
                                                                                                                                                            271
                      188                       -71.3%        173              n.a.
                                                                                                                                                                           271
       Adjust-        39                                      134 39    153                                                                                  551                                    Continued
                                                                                                                                                                                                    Operations
        ments                                                                             17 64                                                                                                     Discontinued
     Reported         149               54                             -224                                                                                 -279                                    Operations
                                          32                                                     -591                                                        -1                                     Minorities
                                       22                               -71                                                                                                                         Net Profit
                                                                                                                       -510
                    Q4/15              Q4/16               FY/15       FY/16                     -510
1)   Adjustments according to EBITA adjusted                                               FY/15                       FY/15                                FY/16          FY/16

                          Trade Working Capital Development                                                                                  Net Liquidity (m€)

                                                                                                                                                                            -136                    510
                                                                                                                                                                                             2
                 516                                                                                    -71                                                   966
                                                                                      -58
                                                                                                                              -153
                                                         67    60       74     58                                                               -40
                                 500

                                                                                      31.12.15

                                                                                                        OCF adjusted

                                                                                                                               Adjustments

                                                                                                                                                Net Capex

                                                                                                                                                               Disposals

                                                                                                                                                                             CF disc. Op.

                                                                                                                                                                                            Other

                                                                                                                                                                                                    31.12.16
             31.12.15 31.12.16                           31.12.15       31.12.16
                                                                            2)
                                                               2)
                Net Trade Assets (m€)                     DSO (days)     DPO (days)
2)   Definition DSO: Receivables and WIP, DPO: Payables and prepayments received
Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                                                                                           page 12
Strong foundations to build on
Starting position
    Extensive analysis since mid-2016

       Procedure              • Deep analysis of the company, its markets and its customers
                              • Evaluated our strengths, opportunities and challenges
                              • Analysis based on decades-long industry experience of top management team

        Products              • Exceptional profile: consistently No. 1 supplier of industrial services for the
                                process industry in Europe
                              • Demand for engineering and services is strong and getting stronger

         People               • Deep expertise, knowledge and best-in-class practices
                              • Multiple restructuring phases led to brain-drain and loss of direction
                              • Long-standing customer relationships

       Structure              • Very fragmented, non-integrated sub-optimal structure
                              • Silo mentality not reflective of market demands
                              • Tremendous potential but unrealized opportunities

                  Bilfinger 2020: Creating a strong basis for profitable growth

Bilfinger SE | Capital Markets Day | February 14, 2017                                                            page 14
Back to Profitable Growth
    2 Service Lines, 4 Regions, 6 Industries

   Our ambition                                                             We engineer and deliver
                                                                           process plant performance

                                                         2 Service Lines                  4 Regions                        6 Industries
                                          • E&T – Engineering &               •   Continental Europe               • Chemicals &    • Pharma &
   Where to play                            Technologies                      •   Northwest Europe                   Petrochem        Biopharma
                                          • MMO – Maintenance,                •   North America                    • Energy &       • Metallurgy
                                            Modifications & Operations                                               Utilities      • Cement
                                                                              •   Middle East
                                                                                                                   • Oil & Gas

                                                     People &              Customer &                  Organization &
                                                                                                                                   Financials
                                                      Culture              Innovation                    Structures
   How to win

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                             page 15
Raising the growth potential
Industrial service market
    Continuous growth of operating plants

    •      Number of plants in our defined markets growing constantly      Number of plants in our markets                45k

    •      More than 75% of plants are over 10 years old and number                                                       12k
           of ageing plants increasing
                                                                                                                    32k
    •      Complexity of plants is increasing with positive effect on
           service requirements                                                                                     7k

    •      Ageing plants require higher level of maintenance and                                             20k
           modernization                                                                                     4k
                                                                                                                          33k
                                                                                  12k
                                                                                                                   25k
    •      Customers demand greater efficiency                                     4k
                                                                                                             16k
    •      Authorities impose stricter environmental standards on plant            8k
           operators (reduced emissions)
                                                                                 1970                    1990      2010   2020
                                                                                active plants under 10 years old
                Structural demand for industrial services                       active plants over 10 years old

                                                                          Source: Industrial Info Research

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                           page 17
Competitive Landscape (Selection)
    Unique value proposition for E&T and MMO business

           E&T
                  Geographic scope

                                                         MMO

Bilfinger SE | Capital Markets Day | February 14, 2017         page 18
Bilfinger Market Model
    Contracted out market is USD 125 bn and rising

    Total service market (2-4-6)                               Contracted out market (2-4-6)     Contracted out market by regions and
    [USD bn]                                                   [USD bn]                          industries (2016)
                                                                                                                Northwest Europe        Middle East
                             2.6%
                                           256
                 231
                                                                                                  Regions      Continental
                                                                                                                  Europe
                                           110           E&T
                  98        +2.9%
                                                                            3.4%
                                                                                    143                                                   North America
                                                                      125
                                                                                     71    E&T                                 Cement Metallurgy
                                                                      63    +3.1%                                                            Pharma &
                                           146                                                                    Oil & Gas                  Biopharma
                 132        +2.4%                        MMO
                                                                                                  Industries
                                                                      62             72    MMO
                                                                            +3.7%                                                             Energy &
                                                                                                                                              Utilities
                2016                      2020                       2016           2020
                                                                                                            Chemicals & Petrochem
      Note: E&T market volume comprises projects up to USD Mio 100

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                                    page 19
Bilfinger Market Model
    Different market dynamics in different segments

       Contracted out market / Bilfinger revenues –                                            Contracted out market –
       Growth per region [CAGR 2016-2020, nominal]                                             Growth per industry [CAGR 2016-2020, nominal]
                                                          Bilfinger   Share of                                                                                                Share of
                                                           growth Bilfinger output                                                                                        Bilfinger output
                                                          strength     volume1                                                                                                 volume1
                                                                                               Chemicals &
       Continental                                                                                                                                        3.5%               ~45%
                                       2.1%                                  ~60%              Petrochem
       Europe
                                                                                               Energy &
                                                                                                                                                      3.1%                   ~20%
                                                                                               Utilities
       Northwest
                                              3.6%                           ~20%
       Europe                                                                                  Oil & Gas2                                                       4.1%         ~15%

       North                                                                                   Pharma &
                                              3.6%                                                                                              2.5%                          ~5%
       America                                                               ~15%              Biopharma

                                                                                               Metallurgy                                     2.2%                            ~5%
       Middle
                                                   4.7%
       East                                                                   ~5%
                                                                                               Cement                                                        3.8%
Delivering world class performance
Service Portfolio
    Strong offering for capex and opex driven services

                                                            E&T – Engineering &
                                                               Technologies
                                                                                                              OPEX

         Packaged Units                                                                                                  Turnarounds
                                                                 Efficiency

                                                                                 Modifications
                                                                                                 Maintenance
                                                           Expansions

                                                                                                 Operations
        Plant Expansions                                         Emissions                                           Maintenance Contracts

                                                         CAPEX

                                                                               MMO – Maintenance,
        De-Sulfurizations
                                                                              Modifications & Operations                  Operations
Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                 page 22
Go-To-Market organization
    Market focus, customer centric

                                E&T – Engineering &                                MMO – Maintenance,
                                   Technologies                                  Modifications & Operations

                                                             6 industries

                                             Planning          Oil & Gas           Continental Europe
                International

                                                                                                         Regional
                                                         Chemicals & Petrochem
                                            Execution                               Northwest Europe
                                                           Energy & Utilities

                                                          Pharma & Biopharma
                                          Technologies                                Middle East

                                                              Metallurgy

                                          Construction          Cement               North America

                                                             22 plant types

Bilfinger SE | Capital Markets Day | February 14, 2017                                                              page 23
Innovation MMO
    World Class Maintenance

                                                         Differentiated Proposition

                                                          •   Leading MMO provider in Europe

                                                          •   Engineering credentials

                                                          •   Full service provider

                                                          •   Proprietary and unique Bilfinger Maintenance
                                                              Concept

                                                          •   International / regional footprint

                                                          •   Health and Safety excellence

                                                          •   People excellence

Bilfinger SE | Capital Markets Day | February 14, 2017                                                       page 24
Innovation MMO
    Bilfinger Maintenance Concept to deliver process plant performance

      •      BMC is a world class and proven concept to
             significantly improve maintenance performance

      •      Maintenance concepts are analysed and
             optimized along 16 standardized modules

      •      More than 30 tools help to increase HSEQ
             performance, increase Hands on Tool time and
             reduce maintenance overhead costs

      •      Over time, the share of proactive based
             maintenance is increased and therefore reactive
             maintenance can be reduced

      •      More than 400 projects to assess and improve
             maintenance in process industries have been
             successfully completed with BMC
Bilfinger SE | Capital Markets Day | February 14, 2017                   page 25
Performance MMO
    BMC has reduced maintenance costs at Yara Glomfjord consistently

                                                         Maintenance costs and Production Volume (indexed)

                                                         120
                                                                                                                                                  108%
                                                                100%
                                                         100

                                                          80                                                          Maintenance - Direct Costs
                                                                                                                      • Reactive
                                                                                                                      • Scheduled / Periodic
                                                          60
                                                                                                                      • Proactive     Preemptive

                                                          40

                                                          20

                                                           0
                                                                Year 0   Year 1   Year 2   Year 3   Year 4   Year 5    Year 6   Year 7   Year 8    Year 9

                                                               Maintenance cost (nominal amounts) and production development over 10 years

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                                      page 26
Digitilization
    Smart App, SPA Platform Integration and Planning Efficiency

                                                         From PRO-ACTIVE to PREDICTIVE

                                                          •   Digitalization integral to MMO strategy

                                                          •   Execution efficiency

                                                          •   Planning efficiency

                                                          •   Supporting asset integrity

                                                          •   Seamless interface to customers

                                                          •   HSE assurance

Bilfinger SE | Capital Markets Day | February 14, 2017                                                  page 27
Security Integrity
    Digitalization drives efficiency

                                                               HSE Assurance

                                                                •   Site access control eliminates paper based
                                                                    protocols

                                                                •   High throughput / time saving

                                                                •   Electronic work flow reduces risk of errors

                                                                •   Verification of competency and certifications

                                                                •   HSE compliance
         Fixed                                  Mobile
                                                                •   Direct SAP connectivity
         Installation                           Installation

Bilfinger SE | Capital Markets Day | February 14, 2017                                                              page 28
Asset Integrity
    Up-to-date online plant documentation

                                                         Reverse engineering

                                                          An updated documentation set is created
                                                          using existing documentation and laser
                                                          scanning

                                                         Main output

                                                          Engineering database with digital plant model
                                                          •   Updated P&ID
                                                          •   Single source for all information
                                                          •   Revision control documentation
                                                          •   Data consistency
                                                          •   Data integrity
                                                          •   Data accessibility
Bilfinger SE | Capital Markets Day | February 14, 2017                                                page 29
Asset Integrity
    Laser scanning technology

                                                                   Data                    Model               As-built 3D
               Laser Scanning
                                                                processing              intelligence             model

         On-site data capture.                           Pixel cloud converted   3D model imported       Output is a complete
         Millions of points of                           to 3D model             and plant information   3D model source for
         3D data stored                                                          is incorporated for     isometrics, BOM,
                                                                                 each component          MTO, P&ID …

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                          page 30
Digitilization
    Laser Scanning

Bilfinger SE | Capital Markets Day | February 14, 2017   page 31
Health Safety Environment
    Key differentiator

                                                         Differentiated Proposition

                                                           •   Recognized HSE leader

                                                           •   Bilfinger HSE: People, training,
                                                               qualification and certification

                                                           •   Our people can work safely in
                                                               dangerous environments

                                                           •   Strong track record in HSE
                                                               performance

                                                           •   Key benefit for our customers and a
                                                               key competitive advantage for us

Bilfinger SE | Capital Markets Day | February 14, 2017                                               page 32
Access
    Deliver customer needs

Bilfinger SE | Capital Markets Day | February 14, 2017   page 33
Scaffolding
    Innovative magnetic anchoring

                    CHALLENGE                                              SOLUTION

     • “Normal anchoring” for scaffolding is             • Bilfinger’s scaffolding with magnetic anchor
       not always possible with storage tanks              points uses permanent magnets to attach a
                                                           slim scaffolding construction to the steel tank
     • Large, pyramid-shaped scaffolding with              wall
       additional ballast weigh is required in
       certain cases                                     • Scaffolding construction tailored to the client
                                                           using 3D infinite elements software to simulate
     • Client sought stable scaffolding                    forces on every magnetic anchor point and to
       construction on an ethylene tank in a               simulate external influences like wind and
       safer, quicker and more cost-effective              weather
       way

Bilfinger SE | Capital Markets Day | February 14, 2017                                                       page 34
E&T at a glance
    Covering entire life-cycle of process plants

                                                         Modifications   Expansions   Efficiency   Emissions

                                 Planning

                              Execution

                        Technologies

                        Construction

Bilfinger SE | Capital Markets Day | February 14, 2017                                                         page 35
Process Plant Performance
    Process critical units (packaged units and skids)

                                                                             Credentials

                                                                               •   Almost 200 years of engineering
                                                                                   tradition and heritage

                                                                               •   Delivering „Performance“
                  Gas storage                                 Piping

                                                                                     •     Efficiency

                                                                                     •     Expansions

                                                                                     •     Emissions

                                                                               •   Packaged units in each of our six
                    Bioreactor                           Containment Liner
                                                                                   targeted industries

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                 page 36
E&T
    Construction

                                                         Differentiated Proposition

                                                           •   Track record in our key
                                                               industries

                                                           •   Experience data base ->
                                                               cost, risk, etc.

                                                           •   Industrial projects from $10
                                                               million to $200 million

                                                           •   Piping at the core

                                                           •   HSE excellence

Bilfinger SE | Capital Markets Day | February 14, 2017                                        page 37
E&T
    Emissions & Environmental

                                                         Product portfolio

                                                           •   Legislation driving emissions /
                                                               environmental requirements and
                                                               upgrades

                                                           •   De-salination (forward osmosis)

                                                           •   CO2 recovery unit

                                                           •   Flue-gas de-sulfurization

                                                           •   Marine de-sulfurization

Bilfinger SE | Capital Markets Day | February 14, 2017                                           page 38
Connecting the dots to deliver more
Strategic assessment of all entities
    Value add potential and strategic relevance

          Power with value add potential                 Bilfinger ‘from yesterday to today’   Parts of the portfolio for OOP

      •      Services for multiple industries,                                           MMO   •   Other Operations are
             e.g. refineries                                Power
                                                                             Oil &                 entities with lower degree of
                                                                             Gas                   strategic fit to 2-4-6
      •      Engineering competences,
             e.g. gas processing                                                               •   Profitable businesses with
                                                                                                   improvement potential are
      •      Projects,                                   Engineering                               “managed for value”
             e.g. chemical plants                        Solutions
                                                                                         E&T
                                                                          Industrial
                                                                         Maintenance
                                                                                               •   Some entities identified as
      •      Fabrication, e.g. processing inlet /                           & ISP                  dilutive are going to be
             outlet or gas oil separation plants                                         OOP       fixed and sold

                   Targeted approach for structuring and integrating

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                           page 40
Driving profitable growth
      Three major growth levers for above market profitable growth

  Comparison of growth rates                             Growth levers and growth impact
  [CAGR 2016-2020 in %]                                       In line with market          Above market    Outpace market

                                                                Continental         Northwest     North
                                                                                                                            More than 20 growth
                                                                                                           Middle East      initiatives detailed,
                                                                  Europe             Europe      America
  Total                                                                                                                     including:
                                        2.6%
  market                                                  A
                                                               MMO: Expand share of wallet in home market,                  •   References
                                                               develop growth regions                                       •   Rationale and
                                                                                                                                tactics
  Contracted                                              B                                                                 •   Pre-requisites
  out                                        3.4%              E&T: Go-to-Market push in growth regions                         and mitigation
  market                                                                                                                    •   Financial effects
                                                          C                                                                 •   Responsibilities
                                                                                                                                and milestones
                                                               All: Expand Bilfinger value chains into hitherto
  Bilfinger                                                    underserved industry segments
  organic                                         >5%
  growth1
                                                                    Tracking will be included in group wide tracking tool B TOP
  1   CAGR 2017-2020 in %
Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                              page 41
Company Program „B TOP“
    Key initiative for Bilfinger

                 Initial situation
                                                          Transforming                Operational              Performance
      •      Past improvement
             programs successful but
             limited to SG&A
      •      Several local operational
             improvement measures                        • Setting clear and                                 • Sticking to
                                                           ambitious targets       • Operationalize            ambitious targets
             but overall still potential
                                                                                     financial targets
             for more performance                        • Clear                                             • Organic growth
                                                           responsibilities        • Benchmark key
      •      New management team
                                                         • Defining
                                                                               +     improvement         +   • Operational
             well experienced in                                                     levers                    excellence
                                                           measures and                                        culture
             comprehensive and                                                     • Profit transition
                                                           tracking
             continuous improvement                        implementation
             programs for high
             performance culture

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                             page 42
Value Proposition Example
    Oil & Gas onshore

                                           Gas                                 Nitrogen                            Water and gas
      Separation                                                 Dehydration                Oil treatment
                                           compression                         generation                          treatment
                                                                                                        Process steps served by Bilfinger
                                         Engineered integrated solutions
                                              Gas dehydration unit
                                                                                                              A&C site activities

     Heat recovery package unit

                                                                                                            Safety service activities
                                               Regeneration package unit

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                      page 43
Improving our financial performance
E&T and MMO
    Bilfinger Revenue Model

                                                         E&T – Engineering &
                                                            Technologies

       • Project Based C.
         Duration: 3-18 months
                                                                                                   • Multi-year Service
           − Lump-sum Turnkey                                                                        Duration: 3+2 years
             Contract
                                                                                                     -   Unit rates
           − Time & Material
             Contract                                                                                -   Day rates

       • Packaged Units /                                                                          • Regular Modifications
         Technology                                                                                • Periodic Turnarounds

                                                                       MMO – Maintenance,
                                                                      Modifications & Operations
Bilfinger SE | Capital Markets Day | February 14, 2017                                                                       page 45
Bilfinger 2020
    Creating a world class company

                                                         Value
                                                                       Stabilization                   Build up                     Build out

                                                                                                                              • Organic growth and
                                                                                                                                targeted acquisitions
                                                                                                                              • Increasing financial
                                                                                                  • Organic growth and          performance
                                                                                                    possible selected bolt-
                                                                                                    on acquisitions
                                                                                                  • Focus on core services,
                                                                 •   Self-help and                  industries and regions
                                                                     connecting the dots          • Capitalizing our
                                                                 •   Establishing 2-4-6 structure   exceptional profile
                                                                 •   Avoid risk                   • Manage risk
                                                                 •   Consolidate best practice    • Offering our services
                                                                     from across the firm           along all value chains
                                                                 •   Reduce SG&A                  • B TOP Excellence
                                                                 •   B TOP Implementation

                                                                                                                                                  Time

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                                   page 46
People and culture
Key personnel
    Experienced international operational management team

    Engineering & Technologies                                    MMO – Region Continental Europe               MMO – Region Northwest Europe
                               Michael Löffelmann                             Gerald Pilotto                                Duncan Hall
                               Executive President (from 04/17)               Executive President                           Executive President
                               16 years of industry experience                22 years of industry experience               25 years of industry experience

                               Jean-Pierre Pasquereau                         Matti Jäkel                                   Clive Kendal
                               Executive President                            Financial Director                            Financial Director
                               38 years of industry experience                28 years of industry experience               28 years of industry experience

                               Jens Borgschulte                   MMO – Region North America                    MMO – Region Middle East
                               Financial Director
                               26 years of industry experience                Terrance Ivers                                Dr. Roland Gärber
                                                                              Executive President                           Executive President
                                                                              35 years of industry experience               15 years of industry experience
    Other Operations
                               Niklas Wiegand                                 Volker Sembill                                Stefan Herschler
                               Executive President                            Financial Director                            Financial Director
                               13 years of industry experience                10 years of industry experience               20 years of industry experience

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                                   page 48
The Bilfinger Way
    Mission statement enabling change

     •      We make it work: The passion of all our
            employees is to increase our customers’
            plant performance

     •     Our Values: The three Cs guide us in
           our tasks and give us a clear direction

     •      Aligned Competencies: Our common
            strengths define “The Bilfinger Way” to
            success

     •      Integrity and safety: Our foundation
            and aspiration is to never compromise
            on integrity and safety

                 Common direction and a high commitment to the Bilfinger Way

Bilfinger SE | Capital Markets Day | February 14, 2017                         page 49
Our employees
    Key differentiator

                                            Status quo                              Priorities
      High level of competence and technical expertise
                                                                     • Talent Management
      • 5,500 engineers
                                                                       Development, retention and
      • 25,000 skilled experts
                                                                       succession planning
      • Overall 37,000 employees

      Bilfinger Academy                                              • Bilfinger Academy 2.0
      • Tailored programs to secure standards and steady               Expanding competencies
          improvement of leaders and staff                             internationally to blue- and white-
      • >40,000 e-learnings; >5,000 training days                      collar workers

      HR tools
                                                                     • Project HRcules
      • Various best practices along all steps of the
                                                                       Standardization and automation of
         employee lifecycle: on-boarding, appraisals and
                                                                       HR processes
         incentives

                Significant investments in our people and in efficient HR processes

Bilfinger SE | Capital Markets Day | February 14, 2017                                                       page 50
Compliance
    Top priority

       •      Strengthening culture of integrity: Prevent, detect, response
              as strong measures of our effective compliance program

       •      One simple set of rules: New mission statement, new code of
              conduct, new group policies for the whole group                                 Response

       •      Outstanding team: Highly experienced General Counsel & Chief       Prevent
              Compliance Officer, Monitor and external advisors
       •      High investments: Spend of in high-double-digit-million-€-
              amount in previous as well as in coming years for implementation
              of effective compliance and integrity program as well as for
              conclusion of older cases                                                    Detect

       •      Continuous improvement: Rollout of further state of the art
              compliance processes and regular review of effectiveness

                 Creating a world class compliance system

Bilfinger SE | Capital Markets Day | February 14, 2017                                                   page 51
HSEQ
    Fundamental focus in our business

                                            Status quo                        Priorities

                                                                •   Awareness
      Track record of outstanding achievements
                                                                    Further reinforcement of ‚safety
      • Entire regions without an incident for up to a decade
                                                                    works‘

                                                                •   Learning
      High level of HSE standards
                                                                    Enhancement of e-learning
      • Experienced experts across the Bilfinger group
                                                                    offerings

       Safety focus important part of our DNA                   •   Root cause analysis
      • Best practice initiatives as part of continuous             Improvement of available best
         improvement                                                practices

                Reinforcement of high level of HSEQ standards

Bilfinger SE | Capital Markets Day | February 14, 2017                                                 page 52
Aligned incentives
    Effective going forward

                                            Status quo                            Priorities
      Executive Board:
      • Standardized Scheme in place
      • Short-Term Incentive: EBITA and Free Cash Flow
      • Long-Term Incentive: ROCE and TSR (vs. MDax)

      Management Level 1:
                                                             •   Alignment
      • Mainly standardized scheme in place
                                                                 Introduction of Long-Term Equity based linked
      • Short-Term Incentive: EBITA and Free Cash Flow
                                                                 Bonus to Group Targets 2020
      • Insufficient long term focus
                                                             •   Cascading
       Management Level 2 ff:                                    Instantly increasing focus on cash and
      • Lack of standardization alignment                        additionally breaking down of targets
                                                                 throughout the Management levels

                Focusing efforts through aligned incentive schemes

Bilfinger SE | Capital Markets Day | February 14, 2017                                                           page 53
Outlook Bilfinger 2020
Our analysis for sustainable und profitable growth

                              Our market                             What we are                           How to win

                $ 125 bn CAGR ~3.4 %                     2-4-6 Market Focus & Customer Centric   People, engineering, credentials,
                                                                                                  customer proximity, innovation

                                                                   >5 % top line
                                                                      CAGR1
  1   CAGR 2017-2020 in %
Bilfinger SE | Capital Markets Day | February 14, 2017                                                                               page 55
Execution Plan
Ambitions will be achieved in three stages

  Value
                                                                    Build out

                                                         Build up

                      Stabilization

                                                                                Time
                      What does it mean in numbers?
                      How will we execute?
                      How will we measure and report progress?

Bilfinger SE | Capital Markets Day | February 14, 2017                                 page 57
Company ambition is derived from a comprehensive analysis

                             Market Model: Growth and                        Benchmarks / Peer Group
                                Industry Profit Pool                              comparison
                                                         Ambition 2020*:
                                                         Organic CAGR**
                                                               >5%
                                                         EBITA adj. margin
                                                               ~5%
                                 Root Cause and Lever                         Historical Performance
                                       Analysis                                 Own competences

    * Mid-cycle targets ** Based on FY 2017

Bilfinger SE | Capital Markets Day | February 14, 2017                                                 page 58
Margin ambition is supported by an extensive profit-pool analysis

                               Adjusted EBITA margin                               Profit pool according to
                               FY 2016                                             Bilfinger profile1 (Mix FY 2020)
                                                                                                                                                      • E&T with a defined path to improve
                                                                                                                                                        profitability
                                                                                                   5 to 9%
       E&T
       E&T                                                                                                                                            • Entering blended margin range towards
                                                                                                                                                        the end of the planning period
       EBITA                                                                                                                                          • Based on growth investments 2017 to
                                                  -2.4%                                                                                                 2020 business mix will improve beyond
                                                                                                                                                        2020 and lead to further upside potential
                                              E&T FY 2016                                 Blended margin range
                                                                                          Bilfinger profile 2020

                                                                                                                                                      • Stable MMO business already within
                                                                                                                                                        blended margin range
                                                                                                   3 to 5.5%
                                                                                                                                                      • 2018ff: Margin improvement towards
       MMO                                         4.9%                                                                                                 upper end of blended margin range
       EBITA                                                                                                                                          • Based on growth investments 2017 to
                                                                                                                                                        2020 business mix will improve beyond
                                             MMO FY 2016                                   Blended margin range                                         2020 and lead to further upside potential
                                                                                           Bilfinger profile 2020

    1) Estimate based on expected Bilfinger revenues and typical profitability in relevant segments (“Homunculus”), mid-cycle i.e. stable economic environment

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                                                                              page 59
We will address all P&L line-items

     GROSS MARGIN

           •      LOA1 process
           •      Project management
                                                           Impact on
                                                         gross margin:
                                                            ~200bps      AMBITION2
     ADDRESSING BOTH LINE ITEMS
                                                                         EBITA margin
           •      Process and IT harmonization                            increase of
           •      Procurement                                              ~500bps
                                                                           by 2020
                                                          Impact on
     SG&A RATIO
                                                          SG&A ratio
           •      Lean headquarters                        ~300bps
           •      Lean structures in the field

    1) Limits of authority   2) Mid-cycle targets
Bilfinger SE | Capital Markets Day | February 14, 2017                                  page 60
Overall ~100bps gross margin improvement from project
    excellence measures by 2020

                                                         Define limits of authority
                                                                                       Timeline: fully
               LOA PROCESS                               in relation to defined risk
                                                                                       implemented 2017
                                                         categories

                                                         Improvement,
                 PROJECT                                 standardization and           Timeline: fully
               MANAGEMENT                                enforcement of project        implemented 2018
                                                         management process

Bilfinger SE | Capital Markets Day | February 14, 2017                                                page 61
Root cause analysis: mid-sized projects with most
    significant loss impact

       Root cause analysis on projects over a period of several years

       •     Most projects >50m EUR were profitable
       •     Most significant impact from projects between 5 and 25m EUR project size
                                 Gross profit

                                                0

                                                                                        Project size

Bilfinger SE | Capital Markets Day | February 14, 2017                                                 page 62
Root cause Analysis:
    Issues mainly originate in early stages, detection rather late

    •      Detection of deviation plan/actual rather late                                     40%
           in the execution
                                                                                              20%

                                                            Deviation in Gross profit in %
    •      Very limited opportunity to counteract at high
           percentage of completion                                                            0%

    •      Need for clear understanding of project risk                                      -20%
           and own competences before bid is submitted
                                                                                             -40%
    •      Need for reliable early warning indicators

    •      Need for strengthened project planning and                                        -60%
           execution competence
                                                                                             -80%

                                                                                             -100%
                                                                                                     0%   20%       40%        60%          80%   100%

                                                                                                            Percentage of Completion in %

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                             page 63
Introduction of risk-sensitive LOA processes to avoid
    project losses

    Status quo
    • Authorization by Executive Board based on volume-
                                                                       Project volume thresholds per risk class
      thresholds only
    • A number of projects with significant losses did not reach   €
      Executive Board approval level
                                                                              Executive Board

    Way forward                                                               Responsible Board Member
    • Improved risk categorization, mandatory for all projects
                                                                              Divisional Management
    • Risk-based Board authorization thresholds
    • Approval templates differ according to risk class                       Regional / legal entity level
    • Every project which was approved by Board will be
      further monitored by Board                                                                              Risk category
         “Project Days” with Executive Board

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                        page 64
Mandatory project management process, centrally
    monitored and enforced

                                                                              Project Management Concept
                                                                              •   Group-wide introduction of
                                                 Stage-gate     Structured
                                                 process      Data and KPI
                                                                                  consistent processes which
                                                                 collection       are centrally developed and
                                                                                  maintained
                                                                              •   Consolidation of key project data
                                                                                  in a single data warehouse

                                                 Project
                                                                              •   Determination of KPIs on earned
                                                 manage-                HR        value base
                                                 ment core    development
                                                 processes     and training   •   Stage-Gate Reviews for tenders,
                                                                                  short-term interval controlling
                                                                                  based on standardized templates
                                                                              •   Continuous monitoring of
                                                                                  improvement
                                      Continuous improvement process (CIP)

Bilfinger SE | Capital Markets Day | February 14, 2017                                                          page 65
SG&A costs will be addressed both in headquarters and in the field

                                                                                  Timeline:
                                                         Role of HQ and           implementation
           Lean headquarters
                                                         streamline costs         already started,
                                                                                  in full swing by 2020

                                                         Reduction in number of
                                                                                  Timeline: in full
                Lean structure                           legal entities
                                                                                  swing by 2020
                                                         Lead company concept

Bilfinger SE | Capital Markets Day | February 14, 2017                                                page 66
Headquarters costs will be reduced to 1% of output volume

    • Role of HQ: Strategic Controller, i.e. business related activities will move into divisions
    • Current FTE ambition for 2018/2019 includes investment for improvement of internal control systems
    • Transparent and clear cost ownership to be established
    • Significant savings potential from lower consulting expenses
                                                                                                   -30%
                                                                                            315
                                     89
                                                                                                   280
                                                         80
                                                                                                             220
                                                                     ~1% of
                                                                  output volume   Average
              HQ costs                                                                FTE
                  adj.*                                                                HQ

                                  2015              2016      …      Target                 2015   2016     Target Ambition after
                                                                      2020                                2018/2019 full ICS
                                                                                                                   implementation
                                                                                                                   and Process/IT
     * on a comparable base after re-allocation of Government Services to MMO                                       harmonization
Bilfinger SE | Capital Markets Day | February 14, 2017                                                                              page 67
Reduction of organizational complexity will reduce SG&A costs
    and increase speed

                                                                     •   Currently, only in some countries (e.g. GER) enough critical
                         279
                                                                         mass for Shared Services
                                          ~-40%                      •   Many small entities which can be served by lead company
                                             232
                                                                         concept
  Operating                                                          •   In the course of IT roll-out (ERP and HR) additional
     Legal                                                               opportunities for shared services and outsourcing will arise
    Entities
                                                           160

                                                                     •   Liquidations and mergers taking into account legal and
       Non-                                                              tax-related aspects
  operating
                                                                     •   Significant reduction targeted
     Legal
    Entities                                                         •   Limited direct cost savings, but significant reduction
                                                                         of complexity which leads to higher efficiency
                    31.3.2016            Current         Ambition*
    *Ambition: excludes potential acquisitions
Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                  page 68
Lead company concept for pragmatic regional bundling

     Functions                                     Consolidation approach                       Impact on functions
                                                   • Transactional, not Legal Entity (LE) –
                                                     or business-specific functions to be         Finance:
      Transactional
      functions                                      transferred to Lead Company unless           • Finance function largely covered
                                                     provided by shared service center               by lead companies
                                                                                                  • Smaller associated companies
                                                                                                     with shared CFO
                                                   • Non-transactional, not LE- or business-
                            Not LE-/                                                              HR:
                                                     specific functions to be transferred to
      Non-                  business-
                            specific
                                                     Lead Company                                 • Main HR work in lead companies
      trans-
      actional                                                                                    • Associated companies w/o head
      func-                                        • Non-transactional, LE- or business-             of HR, but with locally required HR
      tions                 LE-/                     specific functions will mainly be               activities
                            business-                retained in local LE
                                                                                                  Comparable approach for IT,
                            specific               • Selected activities may still be             Purchasing, etc.
                                                     transferable to Lead Company – hence
                                                     function-specific investigation required
Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                 page 69
Example North America
    Reduction of complexity combined with lead company concept

                                           Current Structure:                                                                                                                                     Target Structure:
                                                                              Bilfinger SE                                                                                                                          Bilfinger SE
                                                                                                                                             Gross savings
                                                                                                                                             of ~30% of
                                       Bilfinger Industrial
                                         Services N.A.
                                           Holding Inc.
                                                                                                     FCHC Corporation
                                                                                                           (inaktiv )
                                                                                                                                             today’s cost base:                                                              BIS Holding

                                                                                                                                             Optimizing SG&A
               Bilfinger Industrial                            Bilfinger Westcon                                        Centennial Holding
                                                                                                                                             costs through                                                                                                            Centennial
                                      Bilfinger Salamis Inc.                           FCC Corporation                   Corporation Inc.                                  Bilfinger Industrial
                                                                       Inc.                                                                                                                         Bilfinger Salamis Inc.
                                                                                                                                             improvement of
                  Services Inc.                                                                                                (inaktiv )                                                                                                  Bilfinger Westcon Inc.     Contractors
                                                                                                                                                                              Services Inc.
                                                                                                                                                                                                                                                                    Enterprises Inc.

                                                                                                                                             processes and bundling
                                                                                                                                             of administration
                                                                                                                           Centennial
                                                                                                                          Contractors
                                                                                                                         Enterprises Inc.

                                                                                                                                             activities, while        • Harmonize ERP-systems
        • No bundling within the North American entities                                                                                     investing in             • Reduce Management FTE’s through functional
        • Functions have been partially outsourced                                                                                           sales-front offices        bundling
          (e.g. IT, Legal, Taxes)                                                                                                            in line with growth      • Bundle Accounting, Payroll and IT in particular
        • 5 operating companies, 4 ERP-Systems incl.                                                                                         opportunities              (FTE-savings in this area around 30%)
          various subsystems                                                                                                                                          • Reduce consultant costs in Legal and Tax
                                                                                                                                                                        while ensuring faster utilization of tax-loss-carry
                                                                                                                                                                        forwards
                                                                                                                                                                      • Office bundling

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                                                                                                                                                                 page 70
Build-up of customer-facing SG&A only if growth
    potential is materializing

          • Measures defined to reach savings targets                     • Build-up of additional costs depends on
          • Degree of implementation varies                                 order development according to plan
          • Additional measure buffer will be built up to                                                             Structural
            increase probability                                                                                      improvements:
          • Monitoring concept will ensure transparency
            and discipline                                                                                            • Within “G&A”:
                                                                                                                        • Reduction of
                                                                                                                          bureaucracy
                                    434                                                      7.5% of output
                                                                                                                        • Increase of
                                                                                                 volume
                                                                                                                          customer focus
                                                            >-100
                                                                                                                      • Within “S”:
                                                                                                                        • From back-office to
      SG&A costs                                                                                                          front-office
                                                                                                                        • From Europe to
                                                                                                                          growth markets
                                                                                                                        • From established to
                                                                                                                          new industries
                             FY 2016 adj.                Current SG&A       Build-up               2020
                                                           program      customer-facing
                                                                         sales activities
Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                          page 71
Process and IT harmonization as well as improvements in
    sourcing are supporting the margin ambition

                                                                                 Timeline:
                Process and IT                                                   Wave-approach, in
                Harmonization                            Bilfinger IT Strategy
                                                                                 full swing by 2020

                                                                                 Timeline:
                                                                                 Continuous
                  Procurement                            Bilfinger Purchasing    improvement
                    Initiative                           Strategy                of contribution
                                                                                 to earnings

Bilfinger SE | Capital Markets Day | February 14, 2017                                             page 72
ERP target for 2019 includes 5 systems, all SAP-based

                                                                                                                                                                                                   simplified
      Current landscape
      22 ERP systems                                               Harmonized and complexity reduced target ERP landscape based on 5 SAP systems

            SAP systems                                                                                 Input: delivery processes
              SAP systems
                 SAP systems
                    SAP systems                                                                                                                                                    Global single
                      SAP systems
                              7 SAP
                         SAP systems                                                                                                            SAP                                 HR system
                           environments                                                                                 SAP P09
                                                         PSH-                      Consolidated                                                 DI3
                                                                                      target
                                                         project
                                                                                    SAP P14+
                              6 Navision                                             system
                                                                                                                        SAP MC1               SAP CSP
                  …..        environments
                  ….                                                                                                                                                                Global CRM
                                                                                                           Business Intelligence                                                    Sales Force
                         Ecaxt
                         Profitoool
                              9 Other
                          environments
                                                                   Value            Stabilization                         Build up                        Build out
       Global harmonization of
       6 key processes:                                                                                                                                     2020
                                                                                                                                     2019                                               There is additional
       • Purchase to Pay                                                                                                                                                                potential to further
                                                                                                                                                            3rd   migration wave
       • Market to Order                                                                                       2018                  2nd migration wave                                 integrate the ERP
       • Order to Cash                                                                                                                                                                  landscape to a single
                                                                           2017                                1st migration wave                                                       ERP beyond 2019
       • Hire to Retire
       • Investment to Disposal                                            Design and build of global
       • Book to Report                                                    template

                                                                                                                                                                                                Time

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                                                                                   page 73
Significant investments in IT and process harmonization
    leading to greater efficiency and transparency

      •     Investment of ~€50 million mainly in FY 2017 and 2018
      •     Cost improvement program targeting run costs:                                          Organizational
                 •      Transformation into global IT organization in combination                   structure &
                                                                                                    governance
                        with lead company concept
                 •      Preparation of Cloud solutions, e.g. for email and collaboration                              Business
                                                                                                                       value
                 •      Reduction of number of servers (potentially outsourcing)
                                                                                           Innovation
                 •      Retirement of old ERP systems                                        partner    IT strategy

      •     Ambition for 2020: IT costs within benchmark range:
                                                                                                          Benchmark
            Today 2.2% of output volume
                                                                                                           IT costs
              Ambition of 1.8%
            while supporting (internal and external) customer benefits and innovation

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                           page 74
Procurement initiative will lead to higher productivity

                   Status Quo                                                                                  Ambition 2020

    •    In general low maturity
         level                                                                                          •   High maturity level
    •    Global sourcing not                                                                                across regions and
         established                                                                                        categories
    •    Many manual process                                                                            •   Savings linked to P/L
         steps                                                                                          •   Digitalized procurement
    •    Lack of data                                                                                   •   Data driven sourcing
         transparency
     Procurement spend break-down [in bn EUR]

                   ~2.1                                                      Mainly
                                                                             Services                       Potential of
                                                Thereof
                                              Impacting                      Material & Products            >50 bps EBITA
                Spend                         “own” P&L
                                                                      ~1.0
                                                                                                            margin impact
                overall
                                                           Directs
                                                                             Includes: IT & Telecoms,
                                                          Indirects
                                                                             Fleet, Real Estate, etc.

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                           page 75
Stopping the cash drain is a key management priority

      Status Quo
      Free cash flow development                                Root causes          Measures
                    136

                                      Free cash flow
                                      Free cash flow adjusted         Overhead            SG&A efficiency program
             2

                                                                                                Project management
                                                                    Project losses                  initiatives

                                            -111
                                                                       Working           Working capital management
                                                                       capital

                                   -264
              2015                     2016
Bilfinger SE | Capital Markets Day | February 14, 2017                                                                page 76
Working capital management with focus on shortening
    the approval and billing process

                                                           74
         Measures:                                                                        Measures:

         • Reduction of WIP through                                           58          • Increased bundling leads to
           process improvement                                                              better negotiation position,
                 Administration                                                             e.g. payment terms
                 Operations                                                               • Rejection Rate / quality in
                 Speeding up billing                                                        the control of invoices
         • Contract analysis, e.g.
           billing conditions (required
           documentation), flat-rate
           billing, payment terms
         • Billing quality                               DSO    12/31/2016   DPO

                                                         Supported by increased cash
                                                         focus in 2017 incentive system

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                     page 77
Measures to reduce the time between service completion and
    customer acceptance offer significant self help potential

         1 | Procurement                                 2 | Goods and Services           3 | Invoicing                   4 | Receipt of Payment

                      Supplier /                               Internal Resources
                                                                                                  Client                            Cash
                      Subcontractor                            • Inventory
                                                                                                  • Receivables                     Collection
                      • Liability                              • Work in Progress

                       [DPO]                                                                  [DSO]

                                                                           Working Capital

                                                                    WIP                         Receivables                     Overdue

                                                         •   ~20% of DSOs*            •    ~65% of DSOs               •    ~15% of DSOs
               Fast and comprehensive                    •   Customer has to          •    Improvement of             •    Esp. regional
               documentation of rendered                     accept service before         payment terms rather            differences
               services to get customer                      billing process can be        difficult with blue chip
               acceptance earlier
                                                             initiated                     customers

                                                                                                                      *WIP minus prepayments received
Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                              page 78
New organizational setup supports strategy implementation
    and 2020 ambition

                                                         E&T                                  MMO

                                                                           In every region:
                             •      Concentrated know-how                  •   Customer proximity
                             •      Centralized project governance         •   Management of capacity utilization
                             •      Leverage high-value resources          •   More collaboration and cross selling
                             •      Enables fast roll-out of innovations   •   Higher SG&A efficiency

                                      Use International Scale                   Use Regional Scale

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                page 79
How this translates into E&T segment performance

                 in € million                            FY 2016   Going forward

                 Orders received                          1,219    2017: Stabilization of orders

                                                                   2017: Output volume decrease expected
                                                                   CAGR 2018-2020 above Group average
                 Output volume                            1,246    Important growth areas: North America
                                                                                           France, U.K. (Nuclear)
                                                                                           New customers in Pharma & Bio-Pharma
                                                                   2017: positive EBITA adjusted
                 Adj. EBITA-margin                        -2.4%    Entering blended margin range towards the end of the planning
                                                                   period

                                                                   Focus on implementation of new organization and on
                 Organization
                                                                   improvement in project management

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                             page 80
How this translates into MMO segment performance

                 in € million                            FY 2016   Going forward

                 Orders received                          2,422    2017: Positive trend in orders

                                                                   2017: Slight output volume decrease
                                                                   CAGR 2018-2020 below Group average
                 Output volume                            2,461
                                                                   Important growth areas: North America (Chemicals & Petrochem.)
                                                                                           Middle East
                                                                   2017: Decline in EBITA-margin
                 Adj. EBITA-margin                         4.9%    2018ff: Margin improvement towards upper end of blended margin
                                                                   range

                 Organization                                      Impact of new organization also a cost benefit

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                              page 81
Other Operations includes accretive businesses with significant value
    Aiming for disposal in the longer run

                                  615
                                                         •   Dilutive business with 13 entities to be sold or liquidated within 18 months
     sold in 2016                 109                    •   1 already sold
                                                         •   3 entities currently with signed SPA and final closing shortly expected
                                                         •   Negative cash-effect and capital loss when selling (~30 million €)
             dilutive             148

                                                         •   Five entities individually managed for value while selectively leveraging on
                                                             Group resources and capabilities
                                                         •   Profitable business with improvement potential
          accretive               386
                                                         •   Clear exit strategy within next 5 years
                                                         •   Management will be incentivized on value created
                                                         •   Monthly reviews to track successful implementation of individual value
                                                             creation plans
   consolidation     -28
              2016 Output Volume

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                  page 82
Benefit from 49% of the value creation at Apleona

      Vendor‘s Note: €100m, 10% interest p.a. upon maturity

      Preferred participation note (PPN):

      • No management involvement
      • Certain information rights, some further rights
      • Investment: €195m
      • If value develops positively, P&L neutral appreciation

              Will receive 49% of sales proceeds (after repayment of debt) at exit

              Typical money multiple of owner would lead to a significant value upside

Bilfinger SE | Capital Markets Day | February 14, 2017                                   page 83
Additional efficiency measures needed to reach ambition 2020
    leading to slightly higher special items

                                                                                                 285
       In € million                                      Dec. 31, 2016
       Cash and cash equivalents                                1,032
       Financial debt                                                          Restructuring
                                                                 -522
                                                                                         and     135       145
       Net cash                                                   510         SG&A efficiency

       Pension provisions                                        -304                                                               165

       Expected cash-out disposals                         Approx. -30
                                                                               IT investments     50                                 75
       Financial assets (Apleona, JBN)                            320                                                                           90
                                                                                                                  80
       Future cash-out special items                      Approx. -285
                                                                                  Compliance      50                      60
       Intra-year working capital swing                   Approx. -100                                                               50
                                                                         Warranties related to                                                         50
       Valuation net cash                                Approx. 100                                                                                           25
                                                                             sale of Building     50
                                                                                  and Facility                                       40
        •    Management keeps focus on all cash items                                                                                 0
                                                                                                 Future    2017   2018   2019ff
                                                                                                                                  Future P&L    2017   2018   2019ff
        •    This is supported by incentive system                                               payout
                                                                                                   from                           effect from
                                                                                                 special                            special
                                                                                                  items                              items

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                                           page 84
Company program B TOP will ensure execution and drive
    the implementation of a high performance culture

                              Transforming                                                                            Operational                                                                                                                                                                                                        Performance
      Closed Loop                                                                                                                   Net PL T arget
                                                                                                                                    steady state
                                                                                                                                                      TOTAL
                                                                                                                                                             MD2-MD5
                                                                                                                                                   steady state
                                                                                                                                                                                                  Measure Type A
                                                                                                                                                                                      Net PL Target
                                                                                                                                                                                      steady state Impact
                                                                                                                                                                                                          MD2-MD5
                                                                                                                                                                                                                                              Measure Type B
                                                                                                                                                                                                                                  Net PL Target
                                                                                                                                                                                                                                  steady state Impact
                                                                                                                                                                                                                                                       MD2-MD5
                                                                                                                                                                                                                                                                                         Measure Type C
                                                                                                                                                                                                                                                                              Net PL Target
                                                                                                                                                                                                                                                                              steady state Impact
                                                                                                                                                                                                                                                                                                  MD2-MD5
                                                                                                                                                                                                                                                                                                                                       Integrated approach for
                                                                                                                                                                                                                                                                                                                                      continuous improvement
                                                                                                                                    impact 2018    impact 2018 [%]                    impact 2018 2017        [%]                 impact 2018 2017        [%]                 impact 2018 2017        [%]
                                                                                                           Org Unit   PL Responsible[EUR]          [EUR]          Fullfillment        [EUR]        [EUR]      Fullfillment        [EUR]        [EUR]      Fullfillment        [EUR]        [EUR]      Fullfillment
                                                                                                           Region 1   Name 1                     0              0                0%                         0                0%                         0                0%                         0           0%

                                         set clear and ambitious targets                   Target Matrix   Region 2
                                                                                                           Region 3
                                                                                                           Region 4
                                                                                                           Cross
                                                                                                                      Name 2
                                                                                                                      Name 3
                                                                                                                      Name 4
                                                                                                                      Name 5
                                                                                                                                                 0
                                                                                                                                                 0
                                                                                                                                                 0
                                                                                                                                                 0
                                                                                                                                                                0
                                                                                                                                                                0
                                                                                                                                                                0
                                                                                                                                                                0
                                                                                                                                                                                 0%
                                                                                                                                                                                 0%
                                                                                                                                                                                 0%
                                                                                                                                                                                 0%
                                                                                                                                                                                                            0
                                                                                                                                                                                                            0
                                                                                                                                                                                                            0
                                                                                                                                                                                                            0
                                                                                                                                                                                                                             0%
                                                                                                                                                                                                                             0%
                                                                                                                                                                                                                             0%
                                                                                                                                                                                                                             0%
                                                                                                                                                                                                                                                        0
                                                                                                                                                                                                                                                        0
                                                                                                                                                                                                                                                        0
                                                                                                                                                                                                                                                        0
                                                                                                                                                                                                                                                                         0%
                                                                                                                                                                                                                                                                         0%
                                                                                                                                                                                                                                                                         0%
                                                                                                                                                                                                                                                                         0%
                                                                                                                                                                                                                                                                                                    0
                                                                                                                                                                                                                                                                                                    0
                                                                                                                                                                                                                                                                                                    0
                                                                                                                                                                                                                                                                                                    0
                                                                                                                                                                                                                                                                                                                0%
                                                                                                                                                                                                                                                                                                                0%
                                                                                                                                                                                                                                                                                                                0%
                                                                                                                                                                                                                                                                                                                0%
                                                                                                           HQ         Name 6                     0              0                0%                         0                0%                         0                0%                         0           0%
                                                                                                           TOTAL      -

                                         define measures, track implementation

                                         ensure P&L impact

      Measure Implementation Progress by Maturity Degree                                                                                                                                                                                                                                                                                         Organic growth
                                                                                                                                                                                                                                                                                                                              SG&A               High value services
                                                                                           Profit                                                                                                                                                                                                                                                Operational excellence
                                                                                           Transition                                                                                                                                                                                                                                            OPEX reduction
       1st idea,        implementation                                  First (P&L-)
                                            implementation   actions
       savings target   concept,                                        effects and
                                            started          complete   steady state
                                                                                                                                                                                                                                                                                                                             Wave 1                   Wave 2
       definition       business plan
                                                                                                                      Actual                                      Price,                                    Productivity                                            Target
                                                                                                                      2016                                       Inflation                                   Measures                                                2020

       MD1              MD2                MD3               MD4        MD5

           • clear responsibilities                                                        • operationalize financial targets                                                                                                                                                                                            • stick to ambitious goals
           • monthly implementation tracking                                           +   • benchmark key improvement levers                                                                                                                                                                                        +   • cultural change

                                                                                                 High performance culture

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                                                                                                                                                                                                                                                    page 85
Implementation of B TOP requires substantial initial efforts
    but creates a sustainable productivity engine

                                                         FY 2017         FY 2018                FY 2019      FY 2020
          Measure tracking                               pre-tool          tool-based

          Conceptual work
          Program rollout
          IT tool implementation1)
          Training in the field
                                                   concept & IT tool      review and optimize IT tool       productivity wheel in full swing
                                                         [rollout]                  [ramp up]                          [steady state]
                             100%

          high performance culture
          implementation degree
          high performance culture
          implementation effort

                   B TOP                           comprehensive transformation program for profitable growth through cultural change

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                         page 86
FY 2017 will be the year of stabilization

                                                               Starting Point                              Outlook2)
                 in € million                                  FY 2016                                     expected FY 2017

                 Orders received                               4,056                                       Organic increase

                 Output volume                                 4,219                                       Mid-to-high single-digit organic decline

                 Adjusted EBITA /                                                                          Continued improvement
                                                               15 / 0.4%
                 EBITA margin                                                                              Margin increase ~100bps
                                                               €0                                          €1.00
                 Dividend proposal1)
                                                               (paid for FY 2015)                          (paid for FY 2016)

                 1) subject to a corresponding resolution by the competent boards   2) Assumption: on a comparable F/X basis

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                                page 87
Intention to resume dividend payment and execute Share Buyback
    program while targeting investment grade mid- to long-term

            Intended                         • In 2017 for FY 2016: €1.00
            Dividend                         • Forward floor of €1.00
             Policy*                         • Sustainable dividend stream going forward: 40 to 60% of adjusted net profit

           Intended                          • Cancellation of current treasury shares (4%) minus shares to be retained for employee share programs
             Share                           • Executive Board will propose to the Supervisory Board to request shareholders approval for a new 10%
                                               share buyback authorization
           Buyback                           • Executive Board intends to propose to the Supervisory Board a share buyback program of up to €150m
           Program*                            to be executed in FY 2017 and 2018

                                             • Consideration of synergetic M&A begins with the initiation of phase II of the strategy
              M&A
                                             • EBITA accretive one year after integration, ROCE beats WACC two years after integration
             Criteria                        • Immediate start of comprehensive integration                                                           * Based on current
                                                                                                                                                      expectations and
                                                                                                                                                      execution of
                                                                                                                                                      presented strategy
                                                                                                                                                      as well as on
                                                                                                                                                      economic outlook
                                                                                                                                                      at the time.
            Financial                                                                                                                                 Subject to
                                             • Ambition: (mid-term perspective) Investment Grade
             Policy                                                                                                                                   necessary
                                                                                                                                                      approvals by
                                                                                                                                                      supervisory Board
                                                                                                                                                      and AGM

Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                                            page 88
Ambition 2020 will be reached in three phases with clear milestones

   Value
                                 Stabilization                    Build up                                Build out

              • Strategy defined                         •   Top line growth resumed               • Process and System
              • Organization announced                   •   First successes in new growth areas     harmonization fully rolled out
              • Execution master plan                    •   New organization in full swing        • Performance culture
              • Top Management Team                      •   Consistent project management           established
              • Dividend proposed                            process established                   • Productivity wheel in full swing
              • B TOP rolled out                         •   Net Profit break-even                 • Complexity significantly
              • LOA Process rolled out                   •   Adj. FCF positive latest in FY 2018     reduced
              • SAP roll-ins commenced                   •   Share buyback completed
              • CRM implementation started               •   Successfully refinanced                   Financial ambition reached
              • Cash focus in
                incentive system increased
              • Operating performance improved

                                                                                                                                        Time
Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                    page 89
Wrap-up
Bilfinger 2020
    Financial ambition

                Organic Growth                                     Profit                                 Cash                                         Return
                                                                                           • Positive adj. FCF at the
                                                         • EBITA adjusted ~5%                                                                       Post-tax
                                                                                             latest from 2018 onwards
                                                         • Gross margin                                                                          ROCE2 reported:
                    >5% CAGR                                                               • Over the cycle, from 2018
                                                           improvement by ~200bps                                                                   8 to 10%
                 based on FY 2017                                                            onwards: Cash Conversion
                                                         • SG&A ratio reduction by
                                                                                             Rate ~ 1 (minus growth
                                                           ~300bps
                                                                                             adjustment)1

           Capital Structure                                                Investment Grade (mid-term perspective)

                                                                            Sustainable dividend stream going forward
           Dividend Policy
                                                                            Policy: 40 to 60% of adjusted net profit

                                                                                     1Cash Conversion Definition: (Adj. EBITA + Depreciation –    2   Capital Employed w/o PPN
                                                                                     Change NWC - Net CAPEX) / Adj. EBITA
Bilfinger SE | Capital Markets Day | February 14, 2017                                                                                                                       page 91
Bilfinger 2020
    Back to profitable growth

           •      Bilfinger:           Exceptional profile, deep expertise,
                                       long-standing customer relationships
                                                                                          We know what we are
           •      Market:              Increasing demand, unrealized opportunities,
                                       many growth levers

           •      2 Service Lines, 4 Regions, 6 Industries
                                                                                           We know what to do
           •      3 Phases: Stabilization – Build up – Build out

           •      Bilfinger 2020:                    CAGR: >5 %
                                                     EBITA (adjusted): ~5%
                                                                                      We know where we are heading
           •      Sustainable dividend stream going forward

Bilfinger SE | Capital Markets Day | February 14, 2017                                                               page 92
Bilfinger SE | Capital Markets Day | February 14, 2017   page 93
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