BAUER AG · 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

© BAUER AG, D-86529 Schrobenhausen 14-04-11 IR-Presentation_Analyst_Conference_FY2013

BAUER AG

Foundation of Lakhta Tower – St. Petersburg, Russia

Analyst conference

fiscal year 2013 Munich, April 11, 2014

© BAUER AG, D-86529 Schrobenhausen 14-04-11 IR-Presentation_Analyst_Conference_FY2013 2

Total Group revenues (in EUR million)

1,600

1,200

800

400

0

Orders in hand (in EUR million)

800

600

400

200

0

Net profit (in EUR million)

Key Figures FY 2013

Employees (in average)

12,000

9,000

6,000

3,000

0

1,304 1,372 1,436

2010 2011 2012 2013

1,506

2010 2011 2012 2013

614.9 750.0 785.0 765.2

2010 2011 2012 2013

9,094 9,646 10,253 10,264

39.8 34.1 25.8

2010 2011 2012 2013

-19.4 48

36

24

12

0

-12

-24


Mission & Strategy

Services, equipment & products dealing with ground

and groundwater

Our mission

Our strategy

The world is our market.

World market leadership for foundation technology.

Powerful development of drilling applications and related

services for resources, water and energy markets.

Optimizing worldwide organizational networks and self

controlling structures for the Group.

Growth 3 to 8 % per year.

MC 96 with cutter – Kuala Lumpur, Malaysia


Main topics

Key Figures FY 2013

Total Group revenues with EUR 1,506.2 million were 4.9 % above previous year (EUR 1,435.8 million).

The net loss with EUR -19.4 million (previous year: profit of EUR 25.8 million) was in the range as

guided in October 2013. The earnings were especially influenced by some one-off effects.

Following completion of the extensive well construction project executed by the Group's Resources

segment in Jordan, the earnings for the project had to be adjusted downwards by some

EUR 20 million. This adjustment triggered additional impairment losses.

The figures have been further impacted by reduced profit contributions from the Construction

segment resulting from delays on major projects at the start of the year.

The Equipment segment continues to suffer from weaker margins because fewer large rigs were sold

and because of increased competition.

Order backlog with EUR 765.2 million (previous year: EUR 785.0 million) is on a high level.

Already in 2013 the Group has initiated a cost-reduction program of EUR 20 million in order to attain

the earnings targets.

Forecast for 2014: total Group revenues of around EUR 1.55 billion, an EBIT of around EUR 75 million

and a profit after tax of around EUR 20 to 25 million.


Key Figures FY 2013

2012*

in EUR million

2013

in EUR million

∆ FY

in %

Q4 2013

in EUR million

Total Group revenues, of which

- Germany

- International

- Construction

- Equipment

- Resources

- Consolidation / Other

1,435.8

378.6

1,057.2

655.2

589.1

262.8

-71.3

1,506.2

412.1

1,094.1

742.7

628.6

189.9

-55.0

4.9 %

8.8 %

3.5 %

13.4 %

6.7 %

-27.8 %

n/a

396.7

72.1

324.6

212.9

155.0

43.0

-14.3

Sales revenues 1,344.4 1,404.2 4.4 % 434.8

Orders received 1,470.8 1,486.5 1.1 % 325.2

Orders in hand 785.0 765.2 -2.5 % n/a

EBITDA 163.8 126.0 -23.1 % 44.6

EBIT 72.0 32.1 -55.4 % 18.7

EBIT margin in % (of sales revenues) 5.4 2.3 n/a 4.3

Net income 25.8 -19.4 n/a 1.9

Earnings per share in EUR 1.44 -0.99 n/a n/a

Equity ratio in % 30.2 26.5 n/a n/a

Number of employees (average over the year) 10,253 10,264 0.1 % n/a

* Previous year figures have been adjusted.


Contents

Regional breakdown of Revenues 3

Financials 2013 4

Overview BAUER Group 1

BAUER market environment 2

p. 7

p. 13

p. 15

p. 17

5 BAUER share

6 Guidance 2014

p. 27

p. 29


1 BAUER Group The three segments

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, mining,

deep drilling, well

construction,

materials


Resources Segment The three competence areas

1

Environment Exploration & Mining

Services

Materials

Full-line provider for

materials in the field of

well construction

geothermal energy

distribution of gas/water/

geothermal energy

Production drilling

(for example: water wells)

Exploration drilling

Preparative work for the mining

of resources

Complete solutions in the field

of geothermal energy

Special solutions for mining

resources

Disposal of polluted areas

Cleaning of process water

and effluents

Processing of drinking water

Cleaning of extracted air

High purity systems

Brewing technology

High purity water systems


in EUR million (segment after decucting Other/Consolidation)

9

1

Note: 2000 – 2002 based on HGB figures, from 2003 based on IFRS figures

Resources

197

Equipment

591

Construction

Overseas

532

Total 1,506

Construction

Domestic

186

Total Group Revenues Longstanding healthy business development

German reunification

Far East crisis

Financial crisis


Worldwide network More than 110 subsidiaries in about 70 countries

1

BAUER Manufacturing Inc.

Conroe, Texas, USA

GWE Group, plant Luckau,

Germany

BAUER Maschinen KSM,

Kurgan, Russia

BAUER Equipment Malaysia

Shah Alam, Malaysia

BAUER Tianjin Technologies,

Tianjin, China

BAUER Group, plant Aresing near

Schrobenhausen, Germany

Permanent Offices:

Construction

Equipment sales

Resources

Equipment production

locations


BAUER Group Challenges of the world provide chances for the company

1

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


1 BAUER Group Strengths & Chances

Strategic business model with three forward-looking segments

providing high level of synergies.

Global network organisation with flexible, decentralized

management.

World market leader in foundation equipment with innovative

strength in enhancing existing products and designing new

ones.

Strengths

Chances

Construction segment with considerable number of major pro-

jects currently under construction and tendered for worldwide.

New growth potential in Equipment segment with entirely new

techniques such as deep drilling rigs, powerful foundation

crane series and offshore equipment.

Resources segment with ground-breaking projects, e.g.

biological water treatment plant and promising opportunities

due to its focus on growth markets water, energy and

environment. TBA 440 M2 – Deep driling rig


+

World construction markets Bauer market potential

2

13

-

Western Europe:

weak markets,

Germany is quite good +

+

++

Far East:

positive development

in all areas, especially

Hongkong, Malaysia

+ Other Americas:

several chances in

Central America

o

Africa:

slight construction activities,

regional growth (Angola, Algeria);

demand for water and resources

Summary: Growing construction markets worldwide, but generally very unstable; huge pent-up demand.

Specialist foundation construction grows relative to construction market.

Energy sector becomes main booster – also because of energy turnaround (renewable

energies & reduction of energy consumption).

Middle East:

stable, especially

Abu Dhabi, Saudi Arabia;

Qatar many projects

Eastern Europe:

slowly positive development,

especially Russia

Central Asia:

good market

potentials

USA / Canada:

public demand,

power plants, dams, etc.

13

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

-

+

+


Market environment Orders & Currency risks

2

Order backlog (Orders in hand) Currency Risks

Expected order intake

2014

Construction Germany +

Construction International +

Equipment BAUER Maschinen GmbH

Equipment Subsidiaries

Resources

-- weak - slightly weak adequate + well adequate ++ very well adequate

FY 2013 Reach in months

in relation to total

Group revenues

full year 2013

TOTAL

Construction

Equipment

Resources

EUR 765 million

EUR 499 million

EUR 117 million

EUR 150 million

6.1 months

8.1 months

2.2 months*

9.5 months

* incl. running small-type orders

Construction

Project size EUR 100,000 up to EUR 70 million

~ 50 / 50 infrastructure / large industrial buildings

~ 600 projects per year

Local financing (natural hedge) for project duration

Translation risk (consolidation) hedged

US$ business hedged, e.g. swaps

Equipment

~ 70 % of invoicing in EUR

US$ business hedged with permanent translation of

individual machines

Production expansion to US, China and others to

counteract currency risk Euro / US$ / RMB and

others


3 Regional breakdown Total Group revenues 2013

in EUR million

Total 1,506

in EUR million

Africa 60 (4 %)

America 202 (14 %)

Asia-Pacific,

Far East & Australia

326 (23 %)

Middle East

& Central Asia 197 (14 %)

Germany 379 (26 %)

EU excl. Germany

143 (10 %)

Europe (other)

129 (9 %)

Total 1,436

Full year 2012 (adjusted)

Africa 58 (4 %)

America 186 (12 %)

Asia-Pacific,


364 (25 %)

Middle East


Germany 412 (27 %)

EU excl. Germany

168 (11 %)

Europe (other)

155 (10 %)


3 Regional breakdown Construction, Equipment, Resources 2013

Figures after deducting Other/Consolidation

in EUR million

Total 718 Total 591 Total 197

Construction segment Equipment segment Resources segment

Africa 32 (4 %)

America 80 (11 %)

Asia-Pacific,


209 (29 %)

Middle East


Germany 184 (26 %)

EU excl.

Germany

71 (10 %)

Europe (other)

55 (8 %)

Africa 19 (3 %)

America 96 (16 %)

Asia-Pacific,


154 (28 %)

Middle East


Germany 105 (17 %)

EU excl.

Germany

83 (14 %)

Europe (other)

97 (16 %)

Africa 7 (3 %)

America 10 (6 %)

Asia-Pacific,


1 (0 %)

Middle East

& Central Asia

39 (20 %)

Germany 123 (62 %)

EU excl.

Germany

14 (7 %)

Europe (other)

3 (2 %)


Revenues (in EUR million)

Earnings (in EUR million)

Financials Revenues, earnings & orders

4

1,600

1,200

800

400

0

100

75

50

25

0

Orders in hand (in EUR million)

800

600

400

200

0

Order intake (in EUR million)

2012 2013

303

446

293

2011 2010

368

1,410

364

332

438

373

1,507

+6.9 %

Q1

Q2

Q3

Q4

342

-2.4 %

Total Group revenues Sales revenues

EBIT Net profit

389

358

2012 2013 2011 2010

1,304 1,132

1,372

1,220

1,436 1,344

2012 2013

614.9

2011 2010

750.0 785.0

2012 2013

88.4

39.8

2011 2010

82.3

34.1

72.0

25.8

382

1,471

1,506 1,404

765.2

32.1

-19.4

-25

350

458

353

325

1,486 +1.0 %


Financials Working capital needs & net debt

4

Net debt (in EUR million)

Net

fin

an

cia

l

de

bt

Pe

ns

ion

s

Net working capital (in EUR million)

800

600

400

200

0

2010 2011 2012 2013

520 645

49

52

611

82*

672

84

2010 2011 2012

494 626 580

2013

607

*adjusted because of IAS 19 R

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.


Building construction

positive cash contribution

Specialist foundation engineering

pre-financing need

Financials Working capital needs & cash flow

4

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.


Financials Revenues Q4 / FY 2013

4


in EUR '000 Q4 2012* Q4 2013 ∆ Q4 in % FY 2012* FY 2013 ∆ FY in %

Total Group revenues 372,600 396,706 6.5% 1,435,807 1,506,227 4.9%

Sales revenues, Construction 147,551 184,151 24.8% 579,069 659,063 13.8%

Sales revenues, Equipment 194,450 204,547 5.2% 520,576 561,615 7.9%

Sales revenues, Resources 68,377 45,984 -32.7% 244,273 182,968 -25.1%

Sales revenues, Other 152 161 n/a 503 523 n/a

Sales revenues (external) 410,530 434,843 5.9% 1,344,421 1,404,169 4.4%

Consolidated revenues (P&L) 348,300 391,981 12.5% 1,376,078 1,449,521 5.3%

Orders in hand 784,998 765,246 -2.5%


Financials Segment reporting FY 2013

4


Financials Segment reporting FY 2013

4


Financials Earnings Q4 / FY 2013

4

n/a not applicable (a) of sales revenues (b) pre-minorities


in EUR '000 Q4 2012* Q4 2013 ∆ Q4 in % FY 2012* FY 2013 ∆ FY in %

EBITDA 50,412 44,604 -11.5% 163,799 125,972 -23.1%

Margin (a) 12.3% 10.3% n/a 12.2% 9.0% n/a

EBIT 26,273 18,726 -28.7% 72,004 32,081 -55.4%

EBIT margin (a) 6.4% 4.3% n/a 5.4% 2.3% n/a

EBIT Construction segment 5,764 4,319 -25.1% 22,025 22,816 3.6%

EBIT margin, Construction segment (a) 3.9% 2.3% n/a 3.8% 3.5% n/a

EBIT Equipment segment 13,616 18,912 38.9% 33,977 32,223 -5.2%

EBIT margin, Equipment segment (a) 7.0% 9.2% n/a 6.5% 5.7% n/a

EBIT Resources segment 6,486 -4,117 n/a 15,196 -23,576 n/a

EBIT margin, Resources segment (a) 9.5% -9.0% n/a 6.2% -12.9% n/a

Net income (b) 19,173 1,938 -89.9% 25,773 -19,431 n/a

Margin (a) 4.7% 0.4% n/a 1.9% -1.4% n/a

Earnings per share (in EUR) 1.08 -0.13 n/a 1.44 -0.99 n/a


Financials Income statement FY 2013

4

in EUR '000 FY 2012* FY 2013 ∆ FY in %

Consolidated revenues (P&L) 1,376,078 1,449,521 5.3%

Sales revenues (P&L) 1,344,421 1,404,169 4.4%

Material costs -686,834 -755,906 10.1%

Personnel costs -324,989 -342,815 5.5%

Depreciation and amortization of fixed assets -76,403 -79,696 4.3%

Write-downs of inventories due to use -15,392 -14,196 -7.8%

Other operation expenses -200,456 -224,827 12.2%

EBIT 72,004 32,081 -55.4%

Financial income 5,972 7,729 29.4%

Financial expenses -44,657 -45,541 2.0%

Result from associated entities 5,549 -226 n/a

Profit before tax (EBT) 38,868 -5,957 n/a

Income tax -13,095 -13,474 2.9%

Net income 25,773 -19,431 n/a

of which attributable to shareholders of BAUER AG 24,739 -16,927 n/a

of which attributable to minority interest 1,034 -2,504 n/a



Financials Balance sheet December 31, 2013

4

(a) Other provisions also include short term portion of pension provisions

in EUR '000 Dec 31, 2012* Dec 31, 2013 ∆ in %

Assets 1,529,415 1,585,218 3.6%

Intangible assets 34,567 35,388 2.4%

Property, plant and equipment 465,316 459,537 -1.2%

Long term financial assets 23,617 19,005 -19.5%

Other long term assets & deferred taxes 35,799 33,863 -5.4%

Receivables from concession arrangements 40,770 36,762 -9.8%

Inventories 429,794 419,352 -2.4%

Receivables and other assets 449,806 520,657 15.8%

Effective income tax refund claims 4,514 3,437 -23.9%

Cash and cash equivalents 45,232 57,217 26.5%

Equity and liabilities 1,529,415 1,585,218 3.6%

Equity 462,540 419,411 -9.3%

Pension provisions 80,439 81,637 1.5%

Non-current liabilities 491,909 300,708 -38.9%

Current liabilities 472,942 757,079 60.1%

Other provisions / tax 21,585 26,383 22.2%



Financials Cash flow statement FY 2013

4

in EUR '000 FY 2012* FY 2013 ∆ FY in %

Cash flow from operating activities 165,713 38,416 -76.8%

Cash flow from investing activities -76,187 -67,153 -11.9%

Cash flow from financing activities -68,008 43,576 n/a

Free Cash Flow 89,526 -28,737 n/a

Changes in liquid funds affecting payments 21,518 14,839 -31.0%

Influence of exchange rate movements on cash -1,233 -2,854 n/a

Total change in liquid funds 20,285 11,985 -40.9%

Cash at beginning of reporting period 24,947 45,232 81.3%

Cash at end of reporting period 45,232 57,217 26.5%


BAUER share Facts & Figures

5

Bauer family

48.19 %

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

Listed in SDAX (MDAX from 22.09.2008 to 19.09.2010)

Shareholder structure

Share performance 2013

SDAX

DAX

Trading volume

BAUER AG

in EUR 2009 2010 2011 2012 2013

Earnings per share 2.28 2.04 1.86 1.44 -0.99

Share price year end 29.25 35.30 21.10 19.32 18.81

Share price highest 34.45 36.81 38.49 26.50 23.05

Share price lowest 20.64 27.38 16.04 16.13 17.33

Market Cap (in EUR million)

501.1 604.7 361.5 331.0 322.2


BAUER share Dividend policy

5

2009

Dividend payment (in EUR per share)

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

* Proposed; subject to the consent of the Annual General Meeting to be held on June 26, 2014

2013*

0.00


Guidance 2014 Top-line growth with an increase in profitability

5

2013e* 2013 final 2014e

Total Group Revenues ~ 1,500 EUR million 1,506 EUR million ~ 1,550 EUR million

EBIT ~ 25 EUR million 32.1 EUR million ~ 75 EUR million

Net profit ~ -20 EUR million -19.4 EUR million ~ 20-25 EUR million

Merdeka station – Kuala Lumpur, Malaysia Water treatment plant – Nimr, Oman

* Guidance published October 28, 2013

Bauma 2013, Munich


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

BAUER Aktiengesellschaft

Financial calendar 2014

Publication Annual Report 2013 April 11, 2014

Annual Press Conference April 11, 2014

Analyst Conference April 11, 2014

Annual General Meeting June 26, 2014

Interim Report to March 31, 2014 May 14, 2014

Half-Year Interim Report to June 30, 2014 August 14, 2014

Interim Report to September 30, 2014 November 14, 2014

Listing SDAX, CDAX, GEX,

Classic All Share

Prime All Share

DAXplus Family

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ISIN DE0005168108

Reuters B5AG.DE

Bloomberg B5A GR


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.

Documents

BAUER AG · 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