dam remediation at forggensee lake rosshaupten, germany · group presentation 9m/q3 2018 november...

Group Presentation 9M/Q3 2018 November 13, 2018

Dam remediation at Forggensee Lake – Rosshaupten, Germany

© BAUER AG, D-86529 Schrobenhausen 18-11-13 IR-Presentation_9M/Q3_2018 2

Key Figures 9M 2018

9M 2017* in EUR million

9M 2018 in EUR million

∆ 9M in %

Total Group revenues, of which

- Germany

- International

- Construction

- Equipment

- Resources

- Other/Consolidation

1,378.9

382.8

996.1

658.4

568.6

192.8

-40.9

1,235.8

369.1

866.7

537.1

554.7

189.1

-45.1

-10.4%

-3.6%

-13.0%

-18.4%

-2.5%

-1.9%

n/a

Sales revenues 1,265.6 1,122.2 -11.3%

Order intake 1,348.1 1,237.2 -8.2%

Order backlog 977.3 979.2 +0.2%

EBITDA 136.2 126.2 -7.3%

EBIT 66.4 56.8 -14.5%

EBIT margin in % (of sales revenues) 5.2 5.1 n/a

Earnings after tax 6.7 13.1 +90.7%

Earnings per share (in EUR) 0.31 0.65 n/a

Total assets 1,765.1 1,729.3 -2.0%

Equity 423.7 421.8 -0.5%

Equity ratio in % 24.0 24.4 n/a

Employees (average over the year) 10,819 11,475 +6.1%

* Previous year figures adjusted; for more information, see notes on page 93 ff. of the Annual Report 2017


Total Group revenues decreased by 10.4% to EUR 1,235.8 million

(9M 2017: EUR 1,378.9 million). Sales revenues decreased by 11.3% to

EUR 1,122.2 million (9M 2017: EUR 1,265.6 million).

Main reason for this was the Construction segment, although figures are

compared with an unusually good prior-year. Nevertheless, revenues in

the segment were below expectations, as some projects were not

awarded as planned, and significant decline is recorded in Middle East.

EBIT decreased from EUR 66.4 million to EUR 56.8 million.

Earnings after tax were EUR 13.1 million (9M 2017: EUR 6.8 million).

Currency effects had a significantly lower impact than in 2017.

Order backlog with EUR 979.2 million is at the level of 2017. Order intake

decreased by 8.2% to EUR 1,237.2 million (9M 2017: EUR 1,348.1 million).

Total assets declined by 2.0% to EUR 1,729.3 million (9M 2017:

EUR 1,765.1 million).

Management Board: At November 1, Michael Stomberg started as new

CEO. Prof. Thomas Bauer is now Chairman of the Supervisory Board.

Forecast 2018: total Group revenues of around EUR 1.7 billion

(previously: EUR 1.8 billion); earnings forecast unchanged: EBIT of about

EUR 90 million and significantly higher earnings after tax.

Highlights 9M 2018 – BAUER Group

BAUER MC 96 with BC 40 cutter system


Michael Stomberg (CEO)

Subsidiaries

Process Management

Quality Management

HSE

IT

Florian Bauer

Digitalization

Development

Coordination

Training

Corporate Culture

Hartmut Beutler (CFO)

Finance

Legal Affairs & Insurance

Corporate

Communications

Facility Management

Media Design

Peter Hingott

Subsidiaries

Accounting

Human Resources

Purchasing

Management Board change Start of Michael Stomberg as new CEO of BAUER AG


Table of Content

BAUER Group – Strategy, Chances & Markets

Appendix

Financials 9M/Q3 2018 & Guidance


The BAUER Group is a leading provider of services, equipment &

products dealing with ground and groundwater.

Mission

Strategy

The world is our market.

Global network organization with flexible, decentralized management.

Three forward-looking segments providing high level of synergies:

Construction, Equipment, Resources

World market leadership for foundation technology.

Powerful development of drilling applications and services

for related markets.

Highly innovative products and services related to water, environment

and natural resources.

Diaphragm wall for excavation pit – Germany

BAUER Group Mission & Strategy

EUR 1.8 billion total Group revenues

EUR 89.6 million EBIT

5.4% EBIT margin

25.9% equity ratio

10,913

employees FY 2017

Key targets

Revenue growth: 3 - 8% per year

EBIT margin: 7 - 9%

Equity ratio: > 30%


Note: from 2003 based on IFRS figures

BAUER Group Longstanding healthy business development

Total Group revenues in EUR million (segment after deducting Other/Consolidation)

1,600

Equipment

705

Construction

Overseas

638

Total 1,772

Construction

Domestic

181

1,000

1,400

800

600

200

0

1980 1983 1985 1987 1997 1999 2001 2003 2005 2007

Resources

248

1991 1989 1993 1995 2009 2011 2013 2015

1,200

400

1,800

2017

© BAUER AG, D-86529 Schrobenhausen 18-11-13 IR-Presentation_9M/Q3_2018

835

1,033

1,291

1,097 1,132 1,220

1,344 1,402 1,376 1,379 1,397

1,668

0

300

600

900

1,200

1,500

1,800

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

980

1,208

1,527

1,278 1,304 1,372 1,436 1,504 1,560 1,656

1,555

1,772

0

300

600

900

1,200

1,500

1,800

2,100

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Sales revenues in EUR million

Total Group revenues in EUR million

8

CAGR

5.5%

BAUER Group Longstanding healthy business development

CAGR

6.5%


Worldwide network More than 110 subsidiaries in about 70 countries

Schrobenhausen

Kuala Lumpur Tianjin

Permanent Offices:

Construction

Equipment sales

Resources

Equipment production

Conroe


BAUER Group Chances

Construction Equipment Resources

Growth potential in new markets

and with specialized machines.

Strong position as a lot of efforts

were made regarding quality,

efficiency and noise reduction

Manufacture of customized deep

drilling solutions in the joint

venture with Schlumberger.

Powerful duty-cycle crane series,

which entered new markets.

Innovative offshore equipment for

the foundation of wind farms and

tidal turbines.

Growing construction markets

worldwide.

Huge pent-up demand in

developed countries and in

emerging markets.

Specialist foundation grows

somewhat stronger than

construction markets.

Construction segment with

considerable number of major

projects currently under

construction and tendered for

worldwide.

Full-service provider for products

and solutions related to water.

Ground-breaking projects in the

field of cleaning drinking and

process water, e.g. a biological

water treatment plant in Oman.

Promising opportunities due to

its focus on growth markets

water, environment and natural

resources.

High expertise in exploration and

mining services for natural

resources.


World construction markets Bauer market potential

USA / Canada:

big need for infrastructure

investments; individual

large projects in USA

+

Other Americas:

several chances in

Central America

Africa:

little construction

activities; some special

projects; demand for

water and resources is

slightly better

o

Far East:

positive development in

most markets, especially

China, Malaysia, Indonesia

and Philippines;

+

Western Europe:

recovery in most

of the markets

+

Germany:

good market;

infrastructure

budget raised

++ Eastern Europe:

slow positive

development

Russia:

still remains weak

Middle East:

ongoing uncertainty as a result

of oil price; Qatar uncertain

Central Asia:

good market potentials;

small upswing in India

+

-- weak - slightly weak o stable + growing ++ strong growth

o o

-

Last update: November 2018

o


2018 2019

2018 2019 2018 2019 2018 2019

2018 2019

2018 2019

2018 2019

2018 2019

2,4 2,1 3,7 3,7

2018 2019 4,7 4,7

1,2 2,2

2,3 2,4 2018 2019

6,5 6,3

1,7 1,8

6,6 6,2

3,2 2,8

2018 2019

2,9 2,5

1,4 2,4

2018 2019

2018 2019 2,0 1,9

1,9 1,9

2018 2019

3,1 3,8 2018 2019

2,4 2,7

Global economic situation IMF projection of the real annual GDP growth in %

Source: International Monetary Fund, World Economic Outlook Database, October 2018 * CIS = Commonwealth of Independent States (incl. Georgia; excl. Russia)

United States

CIS*

Germany

Middle East &

North Africa

Sub-Saharan Africa

World

Russia

Australia

Developing Asia

Latin America

Europe

Brazil

China

Advanced

Economies

Emerging Markets &

Develop. Economies

12


Africa 63 (3 %)

Americas 228 (13 %)

Asia-Pacific,

Far East & Australia

426 (24 %)

Middle East

& Central Asia 201 (11 %)

Germany 478 (27 %)

EU excl. Germany

258 (15 %)

Europe (other)

118 (7 %)

Full year 2017

Africa 51 (4 %)

Americas 118 (9 %)

Asia-Pacific,


366 (30 %)

Middle East


Germany 369 (30 %)

EU excl.

Germany 196 (16 %)

Europe

(other)

53 (4 %)

Regional breakdown Total Group revenues 9M 2018 – Group

Total 1,236 in EUR million

Total 1,772*

in EUR million

* Previous year adjusted


Construction segment Equipment segment Resources segment

Africa 38 (7 %)

Americas 26 (5 %)

Asia-Pacific,

Far East

& Australia

193 (37 %)

Middle East


Germany 143 (27 %)

EU excl.

Germany

77 (15 %)

Europe

(other)

13 (2 %)

Africa 5 (1 %)

Americas 87 (17 %)

Asia-Pacific,


172 (33 %)

Middle East


Germany 94 (18 %)

EU excl.

Germany

105 (20 %)

Europe

(other)

37 (7 %)

Africa 8 (4 %)

Americas 5 (3 %)

Asia-Pacific, Far East

& Australia 1 (1 %)

Middle East &

Central Asia 25 (13 %)

Germany 132 (70 %)

EU excl.

Germany

14 (7 %)

Europe (other)

3 (2 %)

Regional breakdown Total Group revenues 9M 2018 – Segments

Total 526 in EUR million

Total 522 Total 188

Figures after deducting Other/Consolidation


Table of Content


Appendix



1,6561,555

1,772

1,3791,236

1,379 1,397

1,668

1,2661,122

0

400

800

1,200

1,600

2,000

2015 2016 2017 9M 2017 9M 2018

1,008 1,045 978 977 979

0

300

600

900

1,200

2015 2016 2017 9M 2017 9M 2018

90.7

70.3

89.6

66.456.8

29.0

14.4

3.76.9

13.1

0

20

40

60

80

100

2015 2016 2017 9M 2017 9M 2018

494 379 484 429

405381

454386

550

396

409422

362

411

394

2015 2016 2017 201816

Q1

Q2

Q3

Q4

Financials Revenues, earnings & orders – Group

Revenues

Earnings

Order backlog

Order intake

in EUR million

in EUR million in EUR million

in EUR million Total Group revenues Sales revenues

EBIT Earnings after tax

1,811

1,567

+0.2%

-8.2%

1,741

-10.4%

-11.3%

∆ 9M

-14.5%

+90.7%

∆ 9M


227 210

658

537516 503

8.1 8.0

21.4

12.7

Financials Construction segment – Highlights 9M 2018

Construction

Global provider for specialist

foundation engineering services

Focus on complex, international

projects

~ 50/50 infrastructure / industrial Total Group revenues in EUR million

Order backlog in EUR million

EBIT in EUR million

Total Group revenues were EUR 537.1 million, down 18.4% (previous year:

EUR 658,4 million). 9M 2017 figures were at an unusually high level. This decline in

revenues this year is due to a weaker utilization, shifts in project awards as well as

generally weaker Middle Eastern markets.

EBIT decreased from EUR 21.4 million to EUR 12.7 million.

Order backlog fell slightly to EUR 503.2 million (previous year: EUR 516.5 million)

due to lower order intake, which totaled EUR 547.6 million and was 7.1% below the

previous year's figure of EUR 589.6 million. The order book lasts for 7.3 months.

We expect the earnings to improve further by the end of the year as some larger

successful projects continue over the next few months.

17

-18.4%

-2.6%

2017 2018 2017 2018 2017 2018

Full year 2017:

46% of total Group revenues

EBIT margin: 2.5%

Key targets:

~ 40% of total Group revenues (TGR)

EBIT margin: 4 - 6%

Key figures to be considered:

TGR, order backlog, EBIT

9M

Q3

-40.6%


153

193 197 199178 177

187 183193

176195

178156

171185

201211 221 227

177

151

176

210

0

50

100

150

200

250

Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18

513 531498 499

436477 472 455

513551 584 591 585 575 578 585 578

526 516 493 511 507 503

0

125

250

375

500

625


Financials Construction segment – Revenues and order development



Construction

18

-7.4%

-2.6%


169144

481446

578 557

24.9

15.8

48.8 52.1

Financials Equipment segment – Highlights 9M 2018

Market leader in specialist

foundation equipment

New products for mining, deep

drilling and offshore drilling

About 80% of sales abroad Sales revenues in EUR million

Order intake in EUR million

EBIT in EUR million

Equipment

Total Group revenues with EUR 554.7 million increased by 2.5% against the

previous year (EUR 568.6 million). Sales revenues decreased slightly by 7.2% from

EUR 480.8 million to EUR 446.3 million. In the previous year, the sale of two deep

drilling rigs was included here, meaning there is only a slight decline in core

business compared to 2017.

EBIT increased from EUR 48.8 million to EUR 52.1 million.

Order intake fell slightly by 3.6% from EUR 577.7 million to EUR 557.1 million.

Order backlog with EUR 151.8 million is at the previous year's level (EUR 153.1

million).

Even though sales revenues declined somewhat in the third quarter, a satisfactory

earnings and margins development continues to be observed. We also expect this

at the end of fiscal 2018.

19

-7.2% -3.6% Full year 2017:


EBIT margin: 12.2%

Key targets:

~ 40% of total Group revenues

EBIT margin: 10 - 12%


Sales revenues, order intake, EBIT 2017 2018 2017 2018 2017 2018

9M

Q3

+6.7%


104125 128

205

103115

143

171

100

137 129

181

108 115 123

197

127

186169

180

129

174

144

0

50

100

150

200

250


165185

154

127

165 163187

162177

155166

152 161 159 160171

212 218

148

182

227

170 160

0

50

100

150

200

250


Financials Equipment segment – Revenues and order development

Order intake in EUR million

Sales revenues in EUR million

Equipment

20

-14.5%

+8.4%


186163 159

133 130

162

0

50

100

150

200

2012 2013 2014 2015 2016 2017

521562 545 548

543

661

0

175

350

525

700

2012 2013 2014 2015 2016 2017

Financials Equipment segment – Market development vs. Bauer

Sales revenues of the Bauer Equipment segment in EUR million

Revenues of 50 largest construction equipment manufacturers in USD billion

Equipment

Source: internationalconstruction (04/2018)

Revenues of the world’s 50 largest construction

equipment manufacturers saw a tremendous

decline between 2012 and 2016 of 31%. In China the

decline with 50% was even worse.

The very competitive situation because of the

surplus production capacities in China is easing.

In 2017 there was a reasonable growth of 22%.

The main driver was the Chinese market with +82%.

Bauer passed through this turbulences between

2012 and 2016 with a small increase in revenues

and profited from the overall growth in 2017 also

with a 22% increase of sales.

This development shows the success of the efforts

made regarding, quality, efficiency and noise

reduction of Bauer equipment.

21

-13%

+24%


65 70

193 189

308324

-5.3

-1.2

-4.5

-7.8

Financials Resources segment – Highlights 9M 2018

Products & services related to water,

environment and natural resources.

Competence areas: water treatment,

environmental remediation, waste

management, drilling technologies

and constructed wetlands



EBIT in EUR million

Resources

Total Group revenues with EUR 189.1 million were slightly down by 1.9% on the

previous year (EUR 192.8 million).

EBIT fell from EUR -4.5 million to EUR -7.8 million.

Order backlog was 5.3% up to EUR 324.1 million, mainly due to the large project for

the expansion of the reed bed treatment plant in Oman. With EUR 177.5 million,

order intake was significantly lower than in the previous year (EUR 221.7 million).

The order book lasts for 15.7 months.

After many measures implemented, the segment remains in a reorganization phase.

The environmental and water treatment business are able to work with a very good

order backlog and positive results. Our subsidiary in Jordan, whose drilling

capacity has not been exhausted, still has the biggest impact on our earnings

figures.

22

-1.9%

+5.3% Full year 2017:


EBIT margin: n/a

Key targets:

~ 20% of total Group revenues (TGR)

EBIT margin: 6 - 8%


TGR, order backlog, EBIT 2017 2018 2017 2018 2017 2018

9M

Q3


39

55 53

4248

5360

92

5448

75

44

7167 66

5763 65 65

55 52

68 70

0

20

40

60

80

100


165183 177

150173 169 172

153173 174

274 276 287 294 290 279297

317 308336 330 321 324

0

75

150

225

300

375


Financials Resources segment – Revenues and order development



Resources

23

+10.3%

+5.3%


1,436 1,504 1,560 1,656 1,555

1,772

611 672 646 665 677 594

0

360

720

1,080

1,440

1,800

2012 2013 2014 2015 2016 2017

580 605 604 629 608 549

611 672 646 665 677

594

0

150

300

450

600

750

2012 2013 2014 2015 2016 2017

24

Financials Working capital & net debt – requirements and development

Total Group revenues / net debt in EUR million

Net debt Working capital

Net debt Total Group revenues

Bauer’s business model requires considerably more

working capital than other construction companies.

Current development:

- Net debt fell very sharply by 12.3% to EUR 593.7

million (FY 2017). Inventories, finished goods and

receivables were significantly reduced thanks to

additional sales growth as well as our own measures.

Construction segment:

- Construction contracts with short duration need

approx. 2 - 3 months pre-financing

(no advance payments, no front-loading of prices

possible, comparably long time needed for final

account settlement).

- On some jobs collection of money takes long time

due to disputes with the customer. Bad payment is

frequently used by customers to achieve reductions

in final payments. This can cause law cases.

Comparison with main contractor: they can finance

their company by a positive cash flow from jobs.

+23.4%

-2.8%

∆ 2012/2017

Group

Working capital / net debt in EUR million


Building construction

positive cash contribution

Specialist foundation engineering

pre-financing need

Financials Working capital needs & cash flow

EUR

12 24 months

Positive cash

contribution

Negative cash

contribution

Co

ntr

ac

t va

lue

EUR

Negative cash

contribution

12 24 months

Co

ntr

ac

t va

lue

Equipment segment:

- Due to very special parts being installed, parts need

to be pre-ordered well in advance

approx. 3 months pre-financing of equipment

during production.

- Spare parts store is needed for large customer base.

- A relatively large rental fleet is needed for different

contract types (e.g. rental purchase).

Resources segment:

- A mixture of the Construction and Equipment

segments.

Group


686721 717

605

711 720 736

604

726 701 700629

672709 684

608674 646 628

549 576624 629

0

160

320

480

640

800


724 777 781672

773 776 778

646

779 752 749

665743 762 736

677740 712 686

594639

678 679

0

160

320

480

640

800


26

Financials Working capital & net debt are lower year-end than during the year

Net debt (excl. pensions) in EUR million

Working capital in EUR million +0.0%

-1.0%

Group


Financials Working capital & net debt – Financing of future revenues

Inventory

• Distribution on business segments

• Construction: raw materials for construction sites (concrete, steel, etc.)

• Equipment: 1) Finished machines with a long-term value needed to deliver equipment to customers in time

2) Spare parts and drilling tools in a number of service centers all over the world for high customer service

3) Rental fleet Quite some machines for rental and rental-purchase contracts are strategically important

• Resources: finished goods (water business) and raw materials for construction sites (environmental business)

Receivables

• Distribution on business segments

• Construction: 1) Receivables on construction projects (PoC) – including litigations

2) No large valuation adjustments on receivables in the last years (less than 4% of receivables in average p.a.)

• Equipment: receivables on outstanding customer payments

• Resources: outstanding customer payments (water business) and receivables on projects (environmental & drilling business)

Working capital has a solid and long-term value

Net debt is needed to finance the future revenues of the company

75-80% 15-20% ~5%


is needed

to finance

Working capital mainly consists of inventory

and receivables

20-25% 55-60% 15-20%


Net debt non-current & current debt –

mainly liabilities to banks

Group

27


Financials Income statement 9M 2018


in EUR '000 9M 2017* 9M 2018 ∆ in %

Sales revenues (P&L) 1,265,644 1,122,222 -11.3%

Consolidated revenues (P&L) 1,309,773 1,187,492 -9.3%

Cost of materials -718,965 -612,751 -14.8%

Personel expenses -288,793 -287,991 -0.3%

Other operation expenses -165,833 -160,526 -3.2%

EBITDA 136,182 126,224 -7.3%

Depreciation of fixed assets -58,991 -56,716 -3.9%

Write-downs of inventories due to use -10,834 -12,743 17.6%

EBIT 66,357 56,765 -14.5%

Financial income 24,939 22,811 -8.5%

Financial expenses -65,654 -47,207 -28.1%

Share of profit/loss of associated companies (equity method) 1,799 3,495 n/a

Earnings before tax (EBT) 27,441 35,864 -28.1%

Income tax expense -20,580 -22,782 10.7%

Earnings after tax 6,861 13,082 90.7%

of which attributable to shareholders of BAUER AG 5,373 11,131 n/a

of which attributable to non-controlling interests 1,488 1,951 31.1%


Financials Balance sheet September 30, 2018


in EUR '000 Sept 30, 2017* Sept 30, 2018 ∆ in %

Assets 1,765,116 1,729,323 -2.0%

Non-current assets 626,977 638,411 1.8%

Intangible assets 21,254 18,437 -13.3%

Property, plant and equipment and investment property 406,231 410,368 1.0%

Investments accounted for using the equity method 122,911 122,712 -0.2%

Participations 9,746 11,582 18.8%

Other non-current assets & deferred tax assets 66,835 75,312 12.7%

Current assets 1,138,139 1,090,912 -4.1%

Inventories 445,958 490,605 10.0%

Less advances received on inventories -18,416 -19,690 6.9%

427,542 470,915 10.1%

Receivables and other assets 647,584 570,666 -11.9%

Effective income tax refund claims 6,884 5,086 -26.1%

Cash and cash equivalents 56,129 44,245 -21.2%

Equity and liabilities 1,765,116 1,729,323 -2.0%

Equity 423,705 421,796 -0.5%

Non-current debt 575,202 543,133 -5.6%

Provisions for pensions 122,810 129,536 5.5%

Non-current liabilities & deferred tax liabilities 452,392 413,597 -8.6%

Current debt 766,209 764,394 -0.2%

Financial liabilities 324,090 342,136 5.6%

Other current liabilities 412,901 388,542 -5.9%

Effective income tax obligations 10,621 18,535 74.5%

Provisions 18,597 15,181 -18.4%


Financials Cash flow statement 9M 2018


in EUR '000 9M 2017* 9M 2018 ∆ in %

Cash flow from operational activity 43,712 -630 n/a

Cash flow from investment activity -38,116 -45,636 19.7%

Cash flow from financing activity 18,732 43,203 n/a

Free Cash Flow 5,596 -46,266 n/a

Changes in liquid funds affecting payments 24,328 -3,063 n/a

Influence of exchange rate movements on cash -1,662 42 n/a

Total change in liquid funds 22,666 -3,021 n/a

Cash and cash equivalents at beginning of reporting period 33,463 47,266 41.2%

Cash and cash equivalents at end of reporting period 56,129 44,245 -21.2%


Financials Forecast 2018 – Revenue target changed

2017 final

Total Group Revenues 1,772 EUR million old: ~ 1,800 EUR million

new: ~ 1,700 EUR million

Revenue growth +14.0% 3 - 8 %

EBIT 89.6 EUR million ~ 90 EUR million

EBIT margin 5.4% 7 - 9 %

Earnings after tax 3.7 EUR million significantly higher than 2017

Equity ratio 25.9% > 30 %

2018 forecast Long-term goal

Tunnel under Suez Canal – Egypt Soil replacement – Hersbruck, Germany In-house exhibition 2017


Investor Relations

BAUER Aktiengesellschaft

BAUER-Straße 1

86529 Schrobenhausen

Germany

Tel.: +49 8252 97-1218

Fax: +49 8252 97-2900

[email protected]

www.bauer.de

2018

Quarterly Statement 9M/Q3 2018 November 13, 2018

2019

Annual Report 2018 April 15, 2019

Analyst & Press Conference April 15, 2019

Quarterly Statement Q1 2019 May 14, 2019

Annual General Meeting June 27, 2019

Half-Year Interim Report to June 30, 2019 August 14, 2019

Quarterly Statement 9M/Q3 2019 November 14, 2019

Listing CDAX

Classic All Share

Prime All Share

ISIN DE0005168108

Reuters B5AG.DE

Bloomberg B5A GR

www.youtube.com/Bauergruppe www.facebook.com/BauerAGgroup

Investor Relations Financial calendar & contact


Table of Content


Appendix



1790 · 1900 · 1902 · 1928 · 1948 · 1956 · 1958 · 1967 · 1969 · 1972 · 1975 · 1976 · 1984 · 1990 · 1992 · 1994 · 1998 · 2001 · 2017

BAUER Group The history – Two centuries of experience

End of 1970’s:

Start of

internationalisation

Early 1990’s:

Build up of

specialist construction/

environmental business

FY 2017:

Total Group

revenues

EUR 1.772

billion,

10,913

employees

4. Jul 2006:

IPO

Early 1970’s:

Start of equipment

manufacturing

Company founded as

copper forge

After WW II (1950's):

Start of construction

business

Early 1980’s:

Selling of equipment to

third parties

1790 1900-1970 1980-1990 2000-2017


BAUER Group The three segments

35 © BAUER AG, D-86529 Schrobenhausen

Target: ~ 40 % of

total Group revenues

Market leader in

specialist foundation

equipment

New products for

mining, deep drilling

and offshore drilling

80 % of revenues

from sales abroad

Multi-branding

strategy

Target: ~ 40 % of total Group revenues

Global provider for specialist foundation engineering services

Specialist construction services

Focus on complex, international projects

Target: ~ 20 % of

total Group revenues

Activities in

environmental

technology, deep

drilling, well

construction,

materials


What is specialist foundation? Building an excavation pit

Permeation Grouting

Mixed-In-Place Method

Injection

Anchor

Diaphragm and

Cut-off Wall

Pile Foundation

Piling Retaining

Wall


What is specialist foundation used for? Applications

Foundations for the highest buildings in the world

Excavation Pits for every problem and requirement

Ground Improvement allows projects on weak ground

Cut-off Walls as solution for dams and dikes


BAUER Group Challenges of the world provide chances for the company

The megatrend of urbanization requires

construction solutions for the city of

the future

To deal with the scarcity of drinking

water, purification and supply

technologies are needed

The increasing mobility in society

demands new and renewed transport

routes

Changing social values are

fundamentally revolutionizing the

business world

Urbanization Infrastructure Water

Culture A change in energy supply can only be

realized through comprehensive

construction works

The remediation of contaminated soil

is the key to sustainable utilization of

resources

Energy transition Environment


Construction St. Petersburg, Russia – Foundation works for Lakhta Center


Construction York, UK – Shaft sinking for Woodsmith Mine


Equipment Product range: Drilling rigs (BG series) – PremiumLine

BG 55 BG 39 PremiumLine

The Premium Line stands, for the one part,

for very modern kelly drilling rigs and on the

other hand for multifunction equipment for a

variety of foundation construction systems.

Specific highlights of the BG PremiumLine

are:

High safety standards

Environmental sustainability, economic

efficiency and performance

Easy to transport and short rigging time

High quality standard

Long lifetime and excellent resale value


Equipment Product range: Drilling rigs (BG series) – ValueLine

BG 26 ValueLine

If kelly drilling is your task, then the BG

ValueLine is the solution. The machines of

the ValueLine are specifically adapted to no

other purpose than kelly drilling – and that

perfectly.

Specific highlights of the BG ValueLine are:

Long mast for increased drilling depth

Enlarged drill axis distance for larger

drilling diameter

High winch traction forces

Increased torque

Fuel-efficient diesel engine


Equipment Product range: Duty-cycle cranes (MC series)

MC 128 MC 96 MC 76


Equipment Product range: Deep Drilling

Joint Venture

of Bauer & Schlumberger

In order to meet the upcoming market challenges, out-of-the-box thinking

is necessary and therefore integrated drilling and rig solutions are of

growing importance.

Based on more than 40 years of experience in engineering and

manufacturing of drilling rigs, NeoRig develops and manufactures

modern drilling solutions which set new standards of safety, efficiency,

productivity and ease of service in the deep drilling business.


Resources Pool of competences from a single hand

Industrial Waste Water

Process & Produced Water

NORM

Constructed Wetlands

Modelling & Well Design

Construction Material for Wells

and Geothermal

Water Distribution Management

Irrigation Systems

Remediation

Landfill Restoration

Decommissioning

Demolition

Hazardous Waste Management

Soil Treatment and Waste

Management

Exploration Drilling

Deep Geothermal Drilling

Well Drilling

Blast Hole Drilling

Environment Water Natural Resources


Resources Water – Process Water & Water Distribution Management


Market environment – Germany German construction market

Source: Federal Statistical Office, Statistical Office Bavaria

in EUR billion

Germany

2017

Employees (in 1,000)

Revenues 76.9

Building construction 43.1

Foundation engineering 33.8

Orders received *

in EUR billion

Housebuilding 16.0

Industrial building 29.4

Public sector

of which

public buildings 4.8

road building 12.6

underground structures 9.4

*) only companies > 20 employees

26.8

72.3

442.0

10.1

6.6 8.2

7.2

6.8

in %

12.1

6.8

August 20182017/ Jan-Aug

2016 2018/2017

0.3

5.3

7.8

4.7

9.3

8.6

5.0

6.9

11.4

5.9

8.5

9.8

8.7

2.9

4.9


BAUER share Facts & Figures

Bauer family

Free float

51.81 %

Listed on Frankfurt stock exchange,

Prime Standard, since July 4, 2006

Share capital EUR 73,001,420.45

Shares issued 17,131,000

Issue price EUR 16.75

Shareholder structure

Share performance (01/2017 – 11/2018)

48.19 %

in EUR 2014 2015 2016 2017 2018

Earnings per share 0.85 1.73 0.66 0.16 ---

Share price year end 13.35 17.40 11.40 30.00 ---

Share price highest 20.04 19.20 17.16 30.96 31.25

Share price lowest 11.75 13.85 9.45 11.72 13.30

Market Cap (in EUR million)

228.7 298.1 195.3 513.9 ~260


BAUER share Dividend policy

Dividend payment Dividend policy founded on a reasonable

balance between shareholders and

company

fair participation of shareholders

continuity over the years

safeguarding of the equity base

All shareholders shall participate in the

success of the business.

In turbulent times such as the financial crisis

our goal of strategic and safe growth of the

company led to higher profit retention for the

last years.

To secure an adequate equity ratio is an

important aim of the company’s management.

With this we intend to safeguard the long-term

success of the Group.

in EUR per share

0.50

1.00 1.00

0.60 0.60

0.50

0.30

0.15 0.15 0.10 0.10

0.00

0.30

0.60

0.90

1.20

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0.00


Key Figures Time Line FY 2008 – Q3 2018

In all three segments, total Group revenues and EBIT figures of Q4 2015 and FY 2015 were influenced by exceptional earnings.

Quarters and FY’s of 2016 and 2017 were adjusted.

Total Group revenues 2008 2009 2010 2011 2012 2013 2014 Q1 15 Q2 15 Q3 15 Q4 15 2015 Q1 16 Q2 16 Q3 16 Q4 16 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18

(in EUR million)

BAUER Group 1,527.2 1,275.8 1,304.0 1,371.8 1,435.8 1,504.2 1,560.2 409.1 371.3 414.5 461.5 1,656.4 374.0 372.0 387.3 421.3 1,554.7 448.2 454.1 476.6 393.1 1,772.0 370.8 421.5 443.5

Construction 700.9 570.0 615.4 606.6 655.2 741.7 725.6 193.5 176.4 194.5 178.5 742.9 156.3 171.3 185.0 200.6 713.1 211.0 220.5 226.9 176.6 835.0 150.9 176.2 210.0

Equipment 780.1 608.5 581.7 636.5 589.1 628.6 639.2 173.8 159.6 163.2 256.5 753.1 159.6 146.7 150.8 177.3 634.4 186.7 185.3 196.6 185.9 754.5 180.9 193.6 180.2

Resources 135.1 174.3 177.7 211.5 262.8 188.9 252.8 54.3 47.8 75.1 44.4 221.6 71.4 67.4 66.4 57.4 262.4 63.0 64.7 65.1 55.4 248.2 51.7 67.6 69.9

Sales revenues 2008 2009 2010 2011 2012 2013 2014 Q1 15 Q2 15 Q3 15 Q4 15 2015 Q1 16 Q2 16 Q3 16 Q4 16 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18

(in EUR million)

BAUER Group 1,290.8 1,096.5 1,131.7 1,219.6 1,344.4 1,402.2 1,375.7 299.6 342.4 376.8 360.2 1,379.0 317.6 332.2 342.8 404.3 1,396.9 378.9 451.2 435.4 402.2 1,667.9 318.4 398.7 405.1

Construction 584.3 487.9 505.8 506.2 579.1 657.5 646.6 156.0 163.9 179.4 151.5 650.8 143.6 154.9 162.7 153.3 614.5 196.6 206.4 214.5 166.3 783.8 143.2 164.2 202.1

Equipment 601.2 456.5 469.3 511.4 520.6 561.6 532.7 100.5 137.4 129.3 180.8 548.0 107.8 115.2 123.0 196.7 542.7 126.6 185.7 168.5 180.1 660.9 128.6 173.6 144.0

Resources 105.1 152.0 156.4 201.5 244.3 182.6 195.9 42.9 40.9 67.9 27.6 179.3 65.9 61.6 56.7 54.0 238.2 55.3 57.7 53.2 55.3 221.5 46.3 60.5 58.7

EBIT 2008 2009 2010 2011 2012 2013 2014 Q1 15 Q2 15 Q3 15 Q4 15 2015 Q1 16 Q2 16 Q3 16 Q4 16 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18

(in EUR million)

BAUER Group 167.5 84.4 88.4 82.3 72.0 30.1 76.4 1.2 14.8 20.4 54.3 90.7 9.8 13.3 21.3 25.9 70.3 8.5 30.2 27.7 23.2 89.6 11.1 23.1 22.7

Construction 46.3 25.7 28.8 17.9 22.0 21.2 26.0 4.9 5.5 2.0 1.5 13.9 4.8 2.6 10.4 12.0 29.7 0.9 12.4 8.1 -1.8 19.6 2.7 2.1 8.0

Equipment 118.3 51.3 48.3 53.0 34.0 32.2 36.0 -0.9 9.3 16.2 74.8 99.4 5.8 8.8 8.0 15.8 38.4 8.0 16.0 24.9 31.7 80.6 14.2 22.2 15.8

Resources 4.0 6.0 8.1 10.9 15.2 -24.0 15.9 -2.9 -0.3 2.0 -18.6 -19.8 -1.1 1.3 3.5 -7.6 -3.7 -0.1 0.9 -5.3 -5.5 -10.0 -5.7 -1.0 -1.2

EBIT margin 2008 2009 2010 2011 2012 2013 2014 Q1 15 Q2 15 Q3 15 Q4 15 2015 Q1 16 Q2 16 Q3 16 Q4 16 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18

(in %)

BAUER Group 13.0% 7.7% 7.8% 6.7% 5.4% 2.1% 5.6% 0.4% 4.3% 5.4% 15.1% 6.6% 3.1% 4.0% 6.2% 6.4% 5.0% 2.2% 6.7% 6.4% 5.8% 5.4% 3.5% 5.8% 5.6%

Construction 7.9% 5.3% 5.7% 3.5% 3.8% 3.2% 4.0% 3.1% 3.4% 1.1% 1.0% 2.1% 3.3% 1.7% 6.4% 7.8% 4.8% 0.5% 6.0% 3.8% -1.1% 2.5% 1.9% 1.3% 3.9%

Equipment 19.7% 11.2% 10.3% 10.4% 6.5% 5.7% 6.8% -0.9% 6.8% 12.5% 41.4% 18.1% 5.4% 7.6% 6.5% 8.0% 7.1% 6.4% 8.6% 14.8% 17.6% 12.2% 11.0% 12.8% 11.0%

Resources 3.8% 3.9% 5.2% 5.4% 6.2% -13.1% 8.1% -6.8% -0.7% 2.9% -67.4% -11.0% -1.7% 2.1% 6.2% -14.1% -1.6% -0.2% 1.5% -10.0% -9.9% -4.5% -12.3% -1.6% -2.0%


Disclaimer

This presentation contains forward-looking statements. Forward-looking statements

are statements that are not historical facts, including statements about our beliefs,

intentions, expectations, predictions and the assumptions underlying them.

These statements are based on factors as they are currently available to the

management of BAUER AG and therefore speak only as of the date they are made.

We assume no liability to update publicly or conform any of them to future events or

future developments.

Forward-looking information is subject to various known and unknown risks and un-

certainties, which could lead to material differences between the actual future results,

financial situation, development or performance of the BAUER Group and those

factors contained in any forward-looking statement. In view of these uncertainties, no

assurance can be given that these forward-looking statements will prove accurate

and correct, or that anticipated and projected future results will be achieved and we

caution you not to place undue reliance on these forward-looking statements.

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