Bilfinger Se Unsp/Adr

So, ladies and gentlemen, a very warm welcome to Bülfinger's third quarter 2025 results conference call. My name is Jasmin Denz and I'm joined today by Thomas Schulz, our Group CEO, and Matti Jäger, our Group CFO. As always, all documents related to our Q3 reporting have been made available on our website. As usual, we will start our webcast with a presentation on the quarterly highlights, the current market environment and our financials, and then open the webcast for your questions. You will then be able to ask questions by pressing star and one on your telephone keypad or via the chat function. At this time, all participants have been placed on a listen-only mode. The webcast will be recorded and I will now hand over to our CEO. Thomas, please, the floor is yours.

Thank you. Hello, everybody. As always, we start with our highlights for this time, the quarter three 2025. We had quite a good stable development in a very volatile market. Our orders received increased by 1% absolute and our revenue by 8%. Our EBITDA margin is on 5.8 and our earnings per share moved slightly up to 147 euro. Significant improvement close to 30% we had in the free cash flow which went from 55 to 71 million euro. We updated our outlook and gave a new revenue outlook of 5.3 to 5.5 billion euro for the year and 5.4 to 5.6% EBITDA margin. I would like to repeat what we said in the last few calls. we always hit the midpoint of the guidance what we give that's what we are after and very important and you are all invited and we hope that you all participate we will give new midterm targets on the upcoming capital markets day in the area of frankfurt on december the 2nd this year Before we go more into market data and so on, as always, our ESG topics. And it is with a strong focus on safety. When you look here into that slide on the left side, we have the total recordable incident frequency. It's based on 1 million working hours, and you see that we moved quarter on quarter from 0.88 to 1.01, which is a slight creating of a disadvantage. We work on to have zero as a figure there. We put a lot of effort, time, actually emotions and money into it with our current result and what we proved in the last few years we are actually playing in the top league not only in the industrial service segment the other figure what we report on which is quite important too is the lost time injury frequency 1 million hours too and there we have an improvement from 0.29 to 0.17 and there we are let's say are closer to the zero and zero means we have no accidents in whatever we do and that in a company with more than 30 000 people is definitely an achievement if we come there out of that We look into the market. And for us, we have one indicator of what we show since several quarters. It's the production index. It's based on 2019. And it is for Europe, Middle East and North America. And we show our four biggest industries where we operate in, which means where we have more than 10% of our revenue line for a longer period of time. And when you see, it's the typical gap, the green line, which represents pharma, biopharma, is still on a growth, which means this industry develops quite well. Whereas the other three, like energy, oil, and gas, versus 2019, is slightly up in the production index, and chemicals and petrochem is actually below 2019. When we then look into the specific industries, I just said that Chemicals and Petrochem is below 2019 in these areas for the production index. It's predominantly Germany which lowers here the figures. When we look into the demand is on the side movement, again, it's Germany, which has a negative impact here. It makes 23% of our revenue share, but the outsourcing potential, the potential where we can, as Billfinger, can go to our clients to offer them to take over all the maintenance and for us to insource, for them to outsource, to have a stronger efficiency gain if professionals like us, like BILFINGER is doing it, is quite a good market. Predominantly based on the pressure, what our clients see in the global market for chemical and petrochem products. The second industry is energy, 23% of the revenue share. The demand is good and the outsourcing potential is good. What we see especially, and that for a longer period of time, is the increasing demand for storage and transmission. The third one is oil and gas. There we have a strong LNG demand and we have a lower refinery demand. It means 20% of our revenue share is in that part. Demand is good overall and outsourcing potential is good. About pharma, I already said where it comes from, that they are on that good growth path for quite a while now. The demand is good and the outsourcing potential is good. And it makes, made in that quarter, 13% of our revenue line. Out of that, some selected orders to see what we really do on the client side. Let us start with Germany in adjacent industries. Adjacent industries are all the industries we work in, which are not belonging to the four big ones, what I showed before. And here it's about a semiconductor manufacturer in Germany, where we got the order for prefabrication and installation of the wastewater treatment system, for, of course, efficient resource, efficient chip production. The second one is out of the area of energy in Sweden from the German client E.ON. It's the prefabrication and assembly of heat accumulator to increase reliability and sustainability in district heating supply. I hope you remember that we as Bilfinger are a leading company in district heating solutions. It's all about liquids and gases and there we are really great. Then the last one is oil and gas out of Kuwait. It's with our well-known KNPC client and it's for the North Oil Pier. It is about a front-end engineering design service. And of course, the background is enhancing operational efficiency, which is the core of our offering. When we talk about core of our offering, we are on innovation. This time, we introduce to you the so-called DRIS 2.0. It is a system to inspect insulation during routine operations. To describe where the challenge comes from, if you are in an area with low temperatures, northern part of Europe, for example, and you open the insulation on a pipe with a higher temperature, you always create moisture in between the insulation and the pipe. If you then close the insulation, you actually create a situation where rust and other damages can happen. That's the reason that in general, these kind of investigations and opening of insulation on these type of pipes are only happening during a so-called turnaround schedule. And the turnaround schedule means a shutdown of that part of a plant or the whole plant. When you do that, a shutdown of a whole plant or a part of a whole plant, then you can imagine it costs the customer a lot of money. So we worked on how to reduce the turnaround schedule. One part is that we can inspect and repair and work on the insulation in these weather conditions without harming the system. And we came up with a portable solution to do that. This kind of solution actually gives us a possibility to shorten the turnaround, the shutdown of the complete plant time by more than 10%. We see always more than 5% cost savings. And it helps the clients to do what we call case-based execution. It's another word for if they believe or if we see there could be a damage and we don't need to shut down the whole plant, we can do then the repair and everything during regular operation. This is a big advantage in a more efficient world. Out of that, I would like to look into the Billfinger demand. You know our opportunity pipeline. The opportunity pipeline is that what we as a Billfinger group quote and work with inquiries and possible upcoming business in the market, judged by if it really will happen and how likely it is that we have a share as Billfinger in that. And we go two years back, that means the July 2023 is the 100. And when you look into, we actually have from last year, third quarter 2024, to this year, third quarter 2025, quite an increase of 15% of the opportunities. When we look more into detail into that, it is clearly that the demand for enhancing efficiency on customer side, no matter which industry, is increasing. And it's a proof of that what we said before. Billfinger will perform if the market goes up or if the market goes down. And we have that mixed picture in the world between the center of Europe and, for example, the Middle East and North America and the growth part on the other side. Orders received is 1% up to 1.36 billion, coming from 1.344. For us, important in that is, of course, the development, as we always say, of the order backlog. That's 7% up. If we look year-to-date, we actually have a book to build year-to-date of 1.1%, which is good. We are in the order intake as revenue year-to-date because we are already in the mid of November. Quite a growth as we predicted as midterm targets. Out of that, I would like to give to Matti, our Group CFO.

Thank you, Thomas. Good afternoon, ladies and gentlemen. I guess by now you will have studied the material that we published earlier today or in the early hours of the morning. Let me add some comments to our financial performance for the third quarter 2025, which was fantastic. The CEO said a good quarter, the CFO says it was a solid quarter.