profitable growth through acquisitions · johnson screens targets comprehensive solutions: products...
TRANSCRIPT
Profitable growth through acquisitions Roland Koch | Chief Executive Officer Joachim Müller | Chief Financial Officer
Telephone conference press
January 18, 2013
Growth strategy
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Internal value creation / organic growth
Growth through acquisitions
Growth through innovation
Output volume €160 million Employees 1,200 Industries ▪ Drinking water processing ▪ Wastewater treatment ▪ Oil and gas industry
Markets North America, Europe and Asia-Pacific
Components for the separation of solids from liquids and gases
Associated services
Filter system for drinking water processing Canberra | Australia
Johnson Screens Minneapolis | United States
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▪ Johnson Screens targets comprehensive solutions: Products and services for the entire process lifecycle
▪ In addition to engineering and components, Johnson Screens offers on-site services such as: ▪ Erection ▪ Acceptance ▪ Repairs ▪ Customer care ▪ Monitoring ▪ Spare parts service
Filter system for wastewater treatment Abbazia | Croatia
Johnson Screens Minneapolis | United States
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Johnson Screens in the Bilfinger Group ▪ Further internationalization of the
water and wastewater technology business of Bilfinger Water Technologies
▪ Together with activities that already exist in the Group, a leading global supplier of components and services in nearly all areas of water and wastewater technology is created
▪ Complementary product lines and geographical presence
▪ Synergies in technology and sales Filter system for wastewater treatment Porirua | New Zealand
Johnson Screens Minneapolis | United States
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Comments
▪ Value drivers for mature markets: renewal and investments for efficiency enhancements
▪ Value drivers for emerging markets: new investments triggered by population growth and water shortages/pollution spare parts service
Market analysis: global water market¹ Above-average growth in North America, Middle East and South Asia forecast
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CAPEX² in water market (2010 & 2016 | in € billion)
2010 2016
141
202
2010 2016
2010 20162010 2016
2010 2016
2010 2016
2010 2016
2010 2016
2010 2016
24 43
6 10
3 4
30 38 6 8
51 67
3 4
17 26
North America
Western Europe
Eastern Europe/
Central Asia
East Asia
South Asia
Middle East/ North Africa
Latin America/ Caribbean Sub-Saharan
Africa
Total capex
CAGR
+6.2%
+10.2% +4.0%
+6.2%
+4.5%
+9.8%
+7.6%
+3.2%
+8.1%
ROW 2010 2016
1 2
+4.9% 1) Maintenance (50%), integration & installation civi, system engineering, technology products 2) Equipment and industrial manufacturing
Source: GWI, Roland Berger
Vacuum sanitation system, Palm Island Jumeirah Dubai | UAE
Bilfinger Water Technologies Status 2012
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Output volume €150 million
Employees 760
Industries
▪ Water and wastewater treatment ▪ Vacuum sanitation systems ▪ Water extraction ▪ Filtration
International supply and services business
Shell grab rakes for water extraction station Singapore
Bilfinger Water Technologies Status 2012
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Markets Europe, North America, MENA
Clients Public sector and industry
Machinery and facility service
Plant and process optimization
Global leader in industrial filtration
Market leader in vacuum sanitation systems
Reference project Chamber filter system for sludge dewatering Main sewage treatment plant Wiesbaden | Germany
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Reference project Filter presses for sediment dewatering Port of Antwerp | Belgium
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With the acquisition of Johnson Screens, Bilfinger Water Technologies becomes the leading global components specialist in nearly all areas of water and waste-water technology with a balanced product portfolio and a very broad geographic presence:
Synergy effects from system solutions in complementary markets
Future joint presence
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Production Passavant Geiger Production Johnson Screens
Sales offices Passavant Geiger Sales offices Johnson Screens
Passavant-Geiger HQ
Johnson Screens HQ
38% Europe 28% North America 14% Asia/Pacific
10% MENA 8% Other 3% South America
Profitable growth through acquisitions since 2nd half of 2011
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Alpha-msr, Germany
ARE IS, Finland
AxEnergy, Germany
EMV, Germany
HG Group, United Kingdom
Neo Structo, India
Tebodin, Netherlands
Westcon, United States
Industrial
AE&E, Czech Republic EnviCon, Germany
Mauell, Germany
Rosink, Germany
Power
Actys, Netherlands
Argo Neo, Germany
Diemme, Italy
HT FM, Ireland
Johnson Screens, United States
PKSB, Germany
ProfiMiet, Germany
Rollright, United Kingdom
Schnabel / Karnasch, Germany
Sielv, Italy
Building and Facility
Profitable growth through acquisitions since 2nd half of 2011
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Regional expansion:
Neo Structo, India Westcon, USA
Regional expansion:
Actys, Netherlands Diemme, Italy HT FM, Ireland Johnson Screens, United States Rollright, United Kingdom Sielv, Italy
Expansion in sustainable high-margin sectors (Germany):
Argo Neo, Germany PKSB, Germany ProfiMiet, Germany Schnabel / Karnasch, Germany
Expansion in oil and gas sector, engineering, I&CT:
Alpha-msr, Germany ARE IS, Finland AxEnergy, Germany EMV, Germany HG Group, United Kingdom Tebodin, Netherlands
Complementing the service range:
AE&E, Czech Republic EnviCon, Germany Mauell, Germany Rosink, Germany
Industrial Power Building and Facility
Regional expansion:
Profitable growth through acquisitions since 2nd half of 2011
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Enterprise value: €700 million
Enterprise value: €350 million
Output volume: €500 million
Employees: 6,500
Average EBITA multiple:
7.8
Bilfinger SE
Enterprise value: €150 million
Output volume: €100 million
Employees: 1,000
Enterprise value: €200 million
Output volume: €350 million
Employees: 2,500
Employees: 10,000
Output volume: €1 billion
Industrial Power Building and Facility
Growth strategy Continuation of successful acquisition strategy
Expanding and complementing our service portfolio
Opening up new regional markets
Strict acquisition criteria remain in place: Acquisitions must ▪ be relevant for the further implementation of our strategy ▪ be led by a strong management team ▪ show sustainable business success ▪ make a positive contribution to Group earnings from the beginning
and earn the cost of capital
Maintaining these criteria in the past has ensured that all acquired companies could be successfully integrated into the Group
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Growth through acquisitions
After the acquisition of Johnson Screens, about €850 million remains available for future acquisitions
▪ Bilfinger is advancing its research and development activities in order to open up attractive markets with new technologies
▪ Internal start-ups have been founded for new products and services that are ready for market
▪ The majority of the projects are targeted toward innovative solutions
for climate protection and resource conservation ▪ Energy efficiency in power plants and industrial facilities ▪ Reducing energy requirements in buildings ▪ Lowering emissions ▪ Using regenerative energy sources
Profitable growth through innovation
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▪ Through its own venture capital company, Bilfinger is also acquiring external expertise that fits in with the strategic focus of the Group ▪ First investment: clean-tech start up sunfire
▪ Lead investor in early stage financing together with the ERP Startfond from KfW
▪ Total investment €8 million, Bilfinger share: €2.5 million
▪ Development and distribution of solutions for an efficient energy supply for the future in a closed carbon cycle
▪ Converting regenerative electricity to ▪ liquid fuel (power-to-liquids) ▪ gas (power-to-gas)
Profitable growth through innovation
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