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© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017
BAUER AG
Successful completion: cut-off wall for a diamond mine, Diavik/Canada
Group Presentation
9M/Q3 2017
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 2
Key Figures 9M 2017
9M 2016
in EUR million
9M 2017
in EUR million
∆ 9M
in %
Total Group revenues, of which
- Germany
- International
- Construction
- Equipment
- Resources
- Other/Consolidation
1,146.3
384.5
761.8
516.4
465.7
205.4
-41.2
1,398.1
382.8
1,015.3
666.5
579.0
193.5
-40.9
+22.0%
-0.4%
+33.3%
+29.1%
+24.3%
-5.8%
n/a
Sales revenues 992.6 1,265.6 +27.5%
Order intake 1,169.6 1,367.3 +16.9%
Order backlog 1,019.0 977.3 -4.1%
EBITDA 104.6 118.8 +13.5%
EBIT 38.0 48.9 +28.7%
EBIT margin in % (of sales revenues) 3.8 3.9 n/a
Earnings after tax -4.0 6.9 n/a
Earnings per share in EUR -0.40 0.31 n/a
Equity ratio in % 24.2 23.8 n/a
Number of employees (average over the year) 10,662 10,819 +1.5%
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 3
The BAUER Group recorded an increase in revenues after the third
quarter 2017 compared to the previous year, which is mainly due to
Construction and Equipment.
Total Group revenues increased by 22.0% to EUR 1,398.1 million (2016:
EUR 1,146.3 million) and sales revenues by 27.5% to EUR 1,265.6 million
(2016: EUR 992.6 million).
EBIT increased by 28.7% from EUR 38.0 million in the previous year to
EUR 48.9 million. The Group's earnings after tax were EUR 6.9 million
(2016: EUR -4.0 million). With a view to the development of earnings, the
Equipment segment has significantly improved, whereas the
Construction and Resources segments are behind expectations.
Order backlog of the Group decreased by 4.1% to EUR 977.3 million
(2016: EUR 1,019.0 million). Order intake increased significantly by 16.9%
from EUR 1,169.6 million to EUR 1,367.3 million.
A high double-digit million order backlog was taken off the books after
the sale of shares in a real estate company at the end of 2016. Without
this effect, the orders in hand were higher than the previous year.
Forecast 2017 unchanged: total Group revenues of around EUR 1.8
billion, EBIT of about EUR 75 million and earnings after tax of about
EUR 23 to 28 million.
Highlights 9M 2017 – BAUER Group
BAUER BG 45 drilling rig – In-house exhibition
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 4
Table of Content
BAUER Group – Strategy, Chances & Markets
Appendix
Financials 9M/Q3 2017 & Guidance
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 5
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.
Ground improvement – Germany
BAUER Group Mission & Strategy
EUR 1.6 billion total Group revenues
EUR 68.3 million EBIT
4.9% EBIT margin
25.5% equity ratio
10,771
employees FY 2016
Key targets
Revenue growth: 3 - 8% per year
EBIT margin: 7 - 9%
Equity ratio: > 30%
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 6
Note: from 2003 based on IFRS figures
1,600
Equipment
615
Construction
Overseas
493
Total 1,586
Construction
Domestic
216
1,000
1,400
800
600
200
0
1980 1982 1984 1986 1996 1998 2000 2002 2004 2006
Resources
262
1990 1988 1992 1994 2008 2010 2012 2014
1,200
400
1,800
2016
BAUER Group Longstanding healthy business development
Total Group revenues in EUR million (segment after deducting Other/Consolidation)
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017
980
1.208
1.527
1.278 1.304 1.372 1.436
1.504 1.560 1.656 1.586
0
300
600
900
1.200
1.500
1.800
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Sales revenues in EUR million
Total Group revenues in EUR million
7
CAGR
4.9%
BAUER Group Longstanding healthy business development
835
1.033
1.291
1.097 1.132 1.220
1.344 1.402 1.376 1.379 1.397
0
300
600
900
1.200
1.500
1.800
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
CAGR
5.3%
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 8
Worldwide network More than 110 subsidiaries in about 70 countries
Schrobenhausen
Kuala Lumpur Conroe Tianjin
Permanent Offices:
Construction
Equipment sales
Resources
Equipment production
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 9
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.
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 10
World construction markets Bauer market potential
USA / Canada:
big need for infrastructure
investments; reluctance
in USA
+
Other Americas:
several chances in
South and Central America
Africa:
little construction
activities; some special
projects; demand for
water and resources is
slightly better
o
Far East:
positive development
most markets, especially
Malaysia and Indonesia;
+
Western Europe:
recovery in most
markets
o
Germany:
very good;
infrastructure
budget raised
+ Eastern Europe:
slow positive
development
Russia:
still remains weak
Middle East:
slowing down as a result
of oil price; most markets
remain stable; Qatar uncertain
Central Asia:
good market potentials;
small upswing in India
+
-- weak - slightly weak o stable + growing ++ strong growth
o -
o
Last update: November 2017
o
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017
2017 2018
2017 2018 2017 2018 2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
Global economic situation IMF projection of the real annual GDP growth in %
Source: International Monetary Fund, World Economic Outlook Database, October 2017 * CIS = Commonwealth of Independent States (incl. Georgia; excl. Russia)
United States
Brazil
CIS*
Germany
Middle East &
North Africa
Sub-Saharan Africa
World Advanced
Economies
Emerging Markets &
Develop. Economies
Russia
Australia
Developing Asia
Latin America
Europe
China
2.2 2.0 3.6 3.7
4.6 4.9
1.2 1.9
2.1 2.1
6.5 6.5
1.8 1.6
6.8 6.5
2.2 2.9
2.2 2.3
0.7 1.5
2.1 1.9
2.0 1.8
2.6 3.4
2.6 3.5
11
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 12
Total 1,398 in EUR million
Africa 75 (5 %)
Americas 236 (15 %)
Asia-Pacific,
Far East & Australia
284 (18 %)
Middle East
& Central Asia 197 (12 %)
Germany 481 (30 %)
EU excl. Germany
218 (14 %)
Europe (other)
95 (6 %)
Full year 2016
Africa 48 (4 %)
Americas 168 (12 %)
Asia-Pacific,
Far East & Australia
354 (25 %)
Middle East
& Central Asia 164 (12 %)
Germany 383 (27 %)
EU excl. Germany 199 (14 %)
Europe (other)
82 (6 %)
Regional breakdown Total Group revenues 9M 2017 – Group
Total 1,586
in EUR million
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 13
Total 654 in EUR million
Total 551 Total 193
Construction segment Equipment segment Resources segment
Africa 29 (4 %)
Americas 71 (11 %)
Asia-Pacific,
Far East & Australia
183 (28 %)
Middle East
& Central Asia 109 (17 %)
Germany 144 (22 %)
EU excl. Germany
72 (11 %)
Europe
(other)
46 (7 %)
Africa 13 (3 %)
Americas 89 (16 %)
Asia-Pacific,
Far East & Australia
171 (31 %)
Middle East
& Central Asia 23 (4 %)
Germany 106 (19 %)
EU excl.
Germany
116 (21 %)
Europe
(other)
33 (6 %)
Africa 6 (3 %)
Americas 8 (4 %)
Asia-Pacific,
Far East & Australia 0 (0 %)
Middle East
& Central Asia
32 (16 %)
Germany 133 (69 %)
EU excl. Germany
11 (6 %)
Europe
(other)
3 (2 %)
Figures after deducting Other/Consolidation
Regional breakdown Total Group revenues 9M 2017 – Segments
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 14
Table of Content
BAUER Group – Strategy, Chances & Markets
Appendix
Financials 9M/Q3 2017 & Guidance
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017
334 389 492
424 405
383 461
421 398
414
342
362
429
2014 2015 2016 2017
76,4
90,7
68,3
38,0
48,9
15,7
29,0
14,4
-4,0 6,9
-25
0
25
50
75
100
2014 2015 2016 9M 2016 9M 2017
763
996 1.008 1.019 977
0
300
600
900
1.200
2014 2015 2016 9M 2016 9M 2017
1.560 1.656 1.586
1.146
1.398 1.376 1.379 1.397
993
1.266
0
450
900
1.350
1.800
2014 2015 2016 9M 2016 9M 2017
15
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
1,521
1,811
1,599
+22.0%
+27.5%
∆ 9M
-4.1%
+16.9% +28.7%
∆ 9M
494
550
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017
7,3
4,4
12,6
7,3
578
516
184 230
516
667
Financials Construction segment – Highlights 9M 2017
Construction
Global provider for specialist
foundation engineering services
Focus on complex, international
projects
~ 50/50 infrastructure / industrial
Full year 2016:
45% of total Group revenues
EBIT margin: 4.9%
Key targets:
~ 40 % of total Group revenues
EBIT margin: 4 - 6%
Total Group revenues in EUR million
Order backlog in EUR million
EBIT in EUR million
Total Group revenues amounting to EUR 666.5 million were 29.1% up on the
previous year. The handling of extensive projects over the course of the year and
capacity utilization distributed evenly across the globe were the main reasons.
EBIT decreased from EUR 12.6 million to EUR 7.3 million. As reported after second
quarter, the figure was negatively impacted in the third quarter as well by individual
unsatisfactory projects in Germany and Australia as well as by effects related to
exchange rate fluctuations.
Order backlog decreased by 10.6% to EUR 516.5 million. The segment has a strong
order book of 8.6 months. The order backlog in specialist foundation engineering
increased, as a high double-digit million order backlog was taken off the books
after the sale of shares in a real estate company at the end of 2016.
Order intake increased significantly by 18.8% to EUR 597.7 million
(previous year: EUR 503.3 million).
16
+29.1% -41.7%
-10.6%
2016 2017
9M
Q3
2016 2017 2016 2017
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017
513 531 498 499
436 477 472 455
513 551 584 591 585 575 578 585 578
526 516
0
125
250
375
500
625
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17
153
193 197 199 178 177 187 183
193 176
195 178
160 172
184 206 213 223 230
0
50
100
150
200
250
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17
Financials Construction segment – Revenues and order development
Order backlog in EUR million
Total Group revenues in EUR million
Construction
17
+24.6%
-10.6%
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017
9,4
24,5 22,8
46,7
163 150
488
588
123 169
346
481
Financials Equipment segment – Highlights 9M 2017
Market leader in specialist
foundation equipment
New products for mining, deep
drilling and offshore drilling
About 80% of sales abroad
Full year 2016:
39% of total Group revenues
EBIT margin: 6.8%
Key targets:
~ 40 % of total Group revenues
EBIT margin: 10 - 12%
Sales revenues in EUR million
Order intake in EUR million
EBIT in EUR million
Equipment
Total Group revenues increased significantly by 24.3% from EUR 465.7 million to
EUR 579.0 million and sales revenues by 39.0% from EUR 346.0 million to EUR
480.8 million.
EBIT increased strongly from EUR 22.8 million to EUR 46.7 million year-on-year.
The earnings figures are therefore significantly higher than our expectations. In
addition to a considerable year-on-year rise in sales and successful deliveries of
large machinery and specialist equipment, the improved ratio between fixed costs
and sales also contributed to this increase.
Order backlog increased from EUR 150.6 million to EUR 153.1 million as order
intake improved strongly by 20.5% from EUR 488.2 million to EUR 588.1 million.
The trend toward increased and more stable order intake continued. The segment
has an order book of 2.8 months.
18
+39.0% +20.5%
+105.0%
9M
Q3
2016 2017 2016 2017 2016 2017
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017
165 185
154
127
165 163 187
162 177
155 166
152 166 159 163
179
216 222
150
0
50
100
150
200
250
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17
104 125 128
205
103 115
143
171
100
137 129
181
108 115 123
197
127
186 169
0
50
100
150
200
250
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17
Financials Equipment segment – Revenues and order development
Order intake in EUR million
Sales revenues in EUR million
Equipment
19
+37.0%
-6.0%
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_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 (04/2017)
Revenues of the world’s 50 largest construction
equipment manufacturer saw a tremendous decline
between 2012 and 2016 of 31%.
In China the decline was even worse with a decline
of 50% and therefore the main reason for the
world’s market development.
A second reason was the fall in global commodity
prices, which hit sales of mining equipment.
The very competitive situation because of the
surplus production capacities in China is easing.
Bauer passed through this situation with a small
increase in revenues, which shows the success of
the efforts made regarding, quality, efficiency and
noise reduction of Bauer equipment.
Nonetheless, the market development lead to a
weaker margin situation in Equipment.
20
187 162 157
135 130
0
50
100
150
200
2012 2013 2014 2015 2016
521 562 545 548 543
0
150
300
450
600
2012 2013 2014 2015 2016
-31%
+4%
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017
3,5
-5,6
3,4
-5,3
290 308
66 65
205 193
Financials Resources segment – Highlights 9M 2017
Products & services related to
water, environment and natural
resources.
Service provider for the oil, gas
and mining industry
Full year 2016:
16% of total Group revenues
EBIT margin: n/a
Key targets:
~ 20% of total Group revenues
EBIT margin: 6 - 8%
Total Group revenues in EUR million
Order backlog in EUR million
EBIT in EUR million
Resources
Total Group revenues amounted to EUR 193.5 million, 5.8% down year-on-year
(EUR 205.4 million).
EBIT amounted to EUR -5.3 million (previous year: EUR 3.4 million).
The raw materials markets are recovering only slowly – particularly in Africa. This
combined with the continuously low oil price is affecting revenues and earnings
within the scope of our expectations. A project of our brewery business and other
required reorganization expenses have again negatively impacted earnings with
respect to the first half of 2017.
The segment has a solid order backlog with a volume of EUR 307.7 million, 6.0% up
on the previous year. Order intake grew slightly by 1.4 % from EUR 219.2 million to
EUR 222.4 million. The segment has a sustainable order book of 13.9 months.
21
-5.8% +6.0% 9M
Q3
2016 2017 2016 2017 2016 2017
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017
165 183 177
150 173 169 172
153 173 174
274 276 287 294 290 279 297
317 308
0
70
140
210
280
350
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17
39
55 53
42 48
53 60
92
54 48
75
44
72 67 66
59 63 65 65
0
20
40
60
80
100
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17
Financials Resources segment – Revenues and order development
Order backlog in EUR million
Total Group revenues in EUR million
Resources
22
-1.7%
+6.0%
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017
686 721 717
605
711 720 736
604
726 701 700 629
672 709 684
608 674 646 628
0
160
320
480
640
800
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17
23
Financials Working capital & net debt – typical cycle during the year
Net debt (excl. pensions) in EUR million
Working capital in EUR million -8.1%
-6.8%
Group
724 777 781 672
773 776 778
646
779 752 749
665 743 762 736
677 740 712 686
0
160
320
480
640
800
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 24
Financials Working capital & net debt – requirements and development
Total Group revenues / net debt in EUR million
1.372 1.436 1.504 1.560 1.656 1.586
645 611 672 646 665 677
0
350
700
1.050
1.400
1.750
2011 2012 2013 2014 2015 2016
626 580 605 604 629 608
645 611
672 646 665 677
0
150
300
450
600
750
2011 2012 2013 2014 2015 2016
Net debt Working capital
Net debt Total Group revenues
Bauer’s business model with its three segments
requires considerably more working capital than other
companies in construction markets.
Changes during the year:
- Levels of working capital in the balance sheet during
the year are typically higher than year-end positions.
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.
+15.6%
+5.0%
∆ 2011/2016
Group
Working capital / net debt in EUR million
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 25
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).
- Deep drilling rigs add large numbers in value.
Resources segment:
- A mixture of the Construction and Equipment
segments.
Group
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017
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 therefore is needed to finance the future revenues of the company
75-80% 15-20% ~5%
Construction Equipment Resources
is needed
to finance
Working capital mainly consists of inventory
and receivables
20-25% 55-60% 15-20%
Construction Equipment Resources
Net debt non-current & current debt –
mainly liabilities to banks
Group
26
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 27
Financials Income statement 9M 2017
in EUR '000 9M 2016 9M 2017 ∆ in %
Sales revenues (P&L) 992,552 1,265,644 27.5%
Consolidated revenues (P&L) 1,084,705 1,328,928 22.5%
Cost of materials -531,816 -718,965 35.2%
Personel expenses -275,177 -288,793 4.9%
Other operation expenses -173,083 -202,409 16.9%
EBITDA 104,629 118,761 13.5%
Depreciation of fixed assets -55,037 -58,991 7.2%
Write-downs of inventories due to use -11,576 -10,834 -6.4%
EBIT 38,016 48,936 28.7%
Financial income 3,604 5,784 60.5%
Financial expenses -31,590 -29,078 -8.0%
Share of profit/loss of associated companies (equity method) -1,034 1,799 n/a
Earnings before tax (EBT) 8,996 27,441 n/a
Income tax expense -12,983 -20,580 58.5%
Earnings after tax -3,987 6,861 n/a
of which attributable to shareholders of BAUER AG -6,827 5,373 n/a
of which attributable to non-controlling interests 2,840 1,488 -47.6%
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 28
Financials Balance sheet September 30, 2017
in EUR '000 Sep 30, 2016 Sep 30, 2017 ∆ in %
Assets 1,706,651 1,783,532 4.5%
A. Non-current assets 613,500 626,977 2.2%
I. Intangible assets 24,653 21,254 -13.8%
II. Property, plant and equipment and investment property 391,222 406,231 3.8%
III. Investments accounted for using the equity method 128,140 122,911 -4.1%
IV. Participations 3,457 9,746 n/a
V. Other non-current assets & deferred tax assets 66,028 66,835 1.2%
B. Current assets 1,093,151 1,156,555 5.8%
I. Inventories 500,709 445,958 -10.9%
II. Receivables and other assets 534,507 647,584 21.2%
III. Effective income tax refund claims 3,127 6,884 n/a
IV. Cash and cash equivalents 38,636 56,129 45.3%
V. Assets classified as held for sale 16,172 0 n/a
Equity and liabilities 1,706,651 1,783,532 4.5%
A. Equity 412,588 423,705 2.7%
B. Non-current debt 595,508 575,202 -3.4%
I. Provisions for pensions 140,320 122,810 -12.5%
II. Non-current liabilities & deferred tax liabilities 455,188 452,392 -0.6%
C. Current debt 698,555 784,625 12.3%
I. Financial liabilities 352,912 324,090 -8.2%
II. Other current liabilities 315,208 431,317 36.8%
III. Effective income tax obligations 12,515 10,621 -15.1%
IV. Provisions 17,920 18,597 3.8%
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 29
Financials Cash flow statement 9M 2017
in EUR '000 9M 2016 9M 2017 ∆ in %
Cash flow from operational activity 9,468 45,812 n/a
Cash flow from investment activity -34,044 -38,116 12.0%
Cash flow from financing activity 18,497 16,632 -10.1%
Free Cash Flow -24,576 7,696 n/a
Changes in liquid funds affecting payments -6,079 24,328 n/a
Influence of exchange rate movements on cash -2,691 -1,662 -38.2%
Total change in liquid funds -8,770 22,666 n/a
Cash and cash equivalents at beginning of reporting period 47,406 33,463 -29.4%
Cash and cash equivalents at end of reporting period 38,636 56,129 45.3%
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 30
Financials Forecast 2017 – Earnings target reduced
2016 final
Total Group Revenues 1,586 EUR million ~ 1,800 EUR million
Revenue growth -4.2 % 3 - 8 %
EBIT 68.3 EUR million old: ~ 75.0 EUR million
new: ~ 65.0 EUR million
EBIT margin 4.9 % 7 - 9 %
Earnings after tax 14.4 EUR million old: ~ 23 - 28 EUR million
new: just in the positive range
Equity ratio 25.5 % > 30 %
2017 forecast Long-term goal
Tunnel under Suez Canal – Egypt Soil replacement – Hersbruck, Germany In-house exhibition – Schrobenhausen
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 31
Investor Relations
BAUER Aktiengesellschaft
BAUER-Straße 1
86529 Schrobenhausen
Germany
Tel.: +49 8252 97-1218
Fax: +49 8252 97-2900
www.bauer.de
Annual Report 2017 April 12, 2018
Annual Press Conference April 12, 2018
Analyst Conference April 12, 2018
Annual General Meeting June 28, 2018
Quarterly Statement Q1 2018 May 14, 2018
Half-Year Interim Report to June 30, 2018 August 10, 2018
Quarterly Statement 9M/Q3 2018 November 13, 2018
Listing CDAX, GEX,
Classic All Share
Prime All Share
DAXplus Family
ISIN DE0005168108
Reuters B5AG.DE
Bloomberg B5A GR
www.youtube.com/Bauergruppe www.facebook.com/BauerAGgroup
Investor Relations Financial calendar & contact
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 32
Table of Content
BAUER Group – Strategy, Chances & Markets
Appendix
Financials 9M/Q3 2017 & Guidance
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 33
1790 · 1900 · 1902 · 1928 · 1948 · 1956 · 1958 · 1967 · 1969 · 1972 · 1975 · 1976 · 1984 · 1990 · 1992 · 1994 · 1998 · 2001 · 2016
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 2016:
Total Group
revenues
EUR 1.586
billion,
10,771
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 2000-2016
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 34
BAUER Group The three segments
34 © 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
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 35
What is specialist foundation? Building an excavation pit
Ground Water
Injection Anchor
Sealing Slab
Supporting Wall
Underpinning
Injection
Pile Foundation
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 36
What is specialist foundation used for? Applications for projects
Foundations Cut-off walls Excavation pits
Buildings Infrastructure Water – Energy Industry
Ground improvement
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 37
BAUER Group Challenges of the world provide chances for the company
Urbanization Infrastructure Water
Environment Energy / Oil & Gas Values
The megatrend urbanization leads to
more complex inner-city solutions
High demand for new infrastructure and
for restoration of existing structures
Changing social values influence the
working and corporate environment
The pollution and contamination of soil
require innovative purification solutions
Energy and resource scarcity provide
chances for underwater and deep drilling
The shortage of clean drinking water
is one of the worlds biggest problems
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 38
BAUER Group Solutions for the biggest challenges and megatrends
Urbanization & Infrastructure
Water
Environment
Energy / Oil & Gas
Leading position in special
foundation engineering.
Global activities with presence
in over 50 countries worldwide.
Construction Equipment
Resources
Market leader in specialist
foundation equipment.
Focus on specialized and
high-end equipment.
Construction
Innovative construction
methods and services with
a special focus on
environmental issues.
Extensive solutions in the
field of decontaminating
polluted ground and
groundwater and for
remediation works.
Equipment Resources
Longstanding experience in
the manufacture of well
drilling rigs.
Innovative products and
services for wells and for
cleaning of drinking and
process water.
Equipment Resources
Customized solutions for
deep drilling, which set new
standards of safety,
efficiency, productivity and
service.
Comprehensive service
provider for clients in the
exploration and mining
fields.
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 39
Construction Diavik, Canada – Diaphragm wall for Diavik Diamond Mines
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 40
Construction Jakarta, Indonesia – Foundation works for Mori Tower
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 41
Construction Dogern, Germany – Dike remediation with Mixed-in-Place
© euroluftbild.de
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 42
Equipment Product range: Drilling rigs (BG series) – ValueLine
BG 30 BG 38 BG 20
ValueLine The BG ValueLine is a fully dedicated Kelly drilling rig.
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 43
Equipment Product range: Drilling rigs (BG series) – PremiumLine
BG 42 BG 50 BG 20
PremiumLine Multi-purpose drilling rigs for various applications of foundation works.
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 44
Equipment Product range: Duty-cycle cranes (MC series)
MC 128 MC 96 MC 64
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 45
Equipment Product range: Deep Drilling
PR 440 Joint Venture
of Bauer & Schlumberger
In order to meet the upcoming market challenges, out-of-the-box thinking
is necessary and therefore customized 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
customized drilling solutions which set new standards of safety,
efficiency, productivity and ease of service in the deep drilling
business.
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 46
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
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 47
Resources Water – Process Water & Water Distribution Management
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 48
Resources Environment – Remediation of Kesslergrube landfill, Germany
© Source: Press picture Roche
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 49
Market environment – Germany German construction market
Source: Federal Statistical Office, Statistical Office Bavaria
Germany
2016
Employees in 1000
Revenues in EUR billion 107.3
Building construction 69.2
Foundation engineering 38.1
Orders received *
in EUR billion
Housebuilding 15.3
Industrial building 27.5
Public sector
of which
public buildings 4.3
road building 12.0
underground structures 8.7
*) only companies > 20 employees
2.7
-12.3
0.4
7.5
7.8
7.8
4.7
18.8
16.8
6.2
10.3
-3.0
35.9
11.5
-21.9
17.0
11.9
9.2
-25.3
-13.8
-4.3
August 20172016/ Jan-Aug
1995 2015 2017/2016
2016/
4.8
25.0
67.8
-44.7
-8.1
781.4
8.8
11.6
-13.6 14.6 5.6
16.3
7.1
4.3
7.8
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 50
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 (01/2015 – 11/2017)
in EUR 2013 2014 2015 2016 2017
Earnings per share -0.99 0.85 1.73 0.66 ---
Share price year end 18.81 13.35 17.40 11.40 ---
Share price highest 23.05 20.04 19.20 17.16 29.70
Share price lowest 17.33 11.75 13.85 9.45 11.72
Market Cap (in EUR million)
322.2 228.7 298.1 195.3 ~490
48.19 %
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 51
BAUER share Dividend policy
2009
Dividend payment
2010 2008 2007 2006
0.30
0.00
0.60
0.90
1.20
0.50
1.00 1.00
0.60 0.60
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.
2011
0.50
2012
0.30
2013
0.00
0.15
2014
in EUR per share
2015
0.15
2016
0.10
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 52
Key Figures Time Line FY 2008 – Q3 2017
In all three segments, total Group revenues and EBIT figures of Q4 2015 and FY 2015 were influenced by exceptional earnings.
Total Group revenues 2008 2009 2010 2011 2012 2013 Q1 14 Q2 14 Q3 14 Q4 14 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
(in EUR million)
BAUER Group 1,527.2 1,275.8 1,304.0 1,371.8 1,435.8 1,504.2 378.1 371.1 413.9 397.1 1,560.2 409.1 371.3 414.5 461.5 1,656.4 383.1 373.8 389.3 439.9 1,586.1 455.7 460.7 481.7
Construction 700.9 570.0 615.4 606.6 655.2 741.7 178.5 173.0 181.8 192.3 725.6 193.5 176.4 194.5 178.5 742.9 159.9 172.0 184.5 205.7 722.1 213.4 223.2 229.9
Equipment 780.1 608.5 581.7 636.5 589.1 628.6 163.8 157.6 186.1 131.7 639.2 173.8 159.6 163.2 256.5 753.1 165.0 147.5 153.3 186.0 651.7 191.6 189.0 198.4
Resources 135.1 174.3 177.7 211.5 262.8 188.9 48.4 52.5 59.6 92.3 252.8 54.3 47.8 75.1 44.4 221.6 71.5 67.4 66.5 59.4 264.7 63.4 64.8 65.3
Sales revenues 2008 2009 2010 2011 2012 2013 Q1 14 Q2 14 Q3 14 Q4 14 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
(in EUR million)
BAUER Group 1,290.8 1,096.5 1,131.7 1,219.6 1,344.4 1,402.2 313.4 332.2 368.1 362.0 1,375.7 299.6 342.4 376.8 360.2 1,379.0 317.6 332.2 342.8 404.3 1,396.9 379.0 451.2 435.4
Construction 584.3 487.9 505.8 506.2 579.1 657.5 167.8 160.8 163.5 154.5 646.6 156.0 163.9 179.4 151.5 650.8 143.6 154.9 162.7 153.3 614.5 196.6 206.4 214.5
Equipment 601.2 456.5 469.3 511.4 520.6 561.6 102.9 120.6 147.4 161.8 532.7 100.5 137.4 129.3 180.8 548.0 107.8 115.2 123.0 196.7 542.7 126.7 185.7 168.5
Resources 105.1 152.0 156.4 201.5 244.3 182.6 42.5 50.7 57.2 45.5 195.9 42.9 40.9 67.9 27.6 179.3 65.9 61.6 56.7 54.0 238.2 55.4 57.7 53.2
EBIT 2008 2009 2010 2011 2012 2013 Q1 14 Q2 14 Q3 14 Q4 14 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
(in EUR million)
BAUER Group 167.5 84.4 88.4 82.3 72.0 30.1 4.9 8.7 24.7 38.1 76.4 1.2 14.8 20.4 54.3 90.7 4.8 13.5 19.7 30.3 68.3 8.5 17.2 23.3
Construction 46.3 25.7 28.8 17.9 22.0 21.2 1.5 6.0 12.9 5.6 26.0 4.9 5.5 2.0 1.5 13.9 1.0 4.3 7.3 17.8 30.4 -0.2 3.2 4.4
Equipment 118.3 51.3 48.3 53.0 34.0 32.2 5.6 7.7 12.7 10.0 36.0 -0.9 9.3 16.2 74.8 99.4 5.9 7.5 9.4 14.2 37.0 9.3 12.9 24.5
Resources 4.0 6.0 8.1 10.9 15.2 -24.0 -2.1 -1.2 -2.4 21.6 15.9 -2.9 -0.3 2.0 -18.6 -19.8 -1.6 1.5 3.5 -6.6 -3.2 -0.3 0.5 -5.6
EBIT margin 2008 2009 2010 2011 2012 2013 Q1 14 Q2 14 Q3 14 Q4 14 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
(in %)
BAUER Group 13.0% 7.7% 7.8% 6.7% 5.4% 2.1% 1.6% 2.6% 6.7% 10.5% 5.6% 0.4% 4.3% 5.4% 15.1% 6.6% 1.5% 4.1% 5.7% 7.5% 4.9% 2.2% 3.8% 5.4%
Construction 7.9% 5.3% 5.7% 3.5% 3.8% 3.2% 0.9% 3.7% 7.9% 3.6% 4.0% 3.1% 3.4% 1.1% 1.0% 2.1% 0.7% 2.8% 4.5% 11.6% 4.9% -0.1% 1.5% 2.1%
Equipment 19.7% 11.2% 10.3% 10.4% 6.5% 5.7% 5.4% 6.4% 8.6% 6.2% 6.8% -0.9% 6.8% 12.5% 41.4% 18.1% 5.5% 6.5% 7.6% 7.2% 6.8% 7.4% 7.0% 14.5%
Resources 3.8% 3.9% 5.2% 5.4% 6.2% -13.1% -4.9% -2.4% -4.2% 47.5% 8.1% -6.8% -0.7% 2.9% -67.4% -11.0% -2.4% 2.4% 6.2% -12.2% -1.4% -0.5% 0.8% -10.5%
© BAUER AG, D-86529 Schrobenhausen 17-11-14 IR-Presentation_Q3_2017 53
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.