IR presentation Q1/2014 - BAUER2011/08/17 · 17 -08 11 IR Presentation_Q2_2017 © BAUER AG, D-86529 Schrobenhausen 2 Key Figures 6M 2017 6M 2016 in EUR million 6M 2017 in EUR million

© BAUER AG, D-86529 Schrobenhausen 17-08-11 IR-Presentation_Q2_2017

BAUER AG

Foundation works for underground car park, Munich/Germany

Group Presentation

First half-year 2017

© BAUER AG, D-86529 Schrobenhausen 17-08-11 IR-Presentation_Q2_2017 2

Key Figures 6M 2017

6M 2016

in EUR million

6M 2017

in EUR million

∆ 6M

in %

Total Group revenues, of which

- Germany

- International

- Construction

- Equipment

- Resources

- Other/Consolidation

757.0

263.1

493.9

331.9

312.4

139.0

-26.3

916.4

264.5

651.9

436.6

380.7

128.2

-29.1

+21.1%

+0.5%

+32.0%

+31.6%

+21.8%

-7.7%

n/a

Sales revenues 649.8 830.2 +27.8%

Order intake 771.6 953.0 +23.5%

Order backlog 1,010.2 1,044.7 +3.4%

EBITDA 62.7 72.5 +15.5%

EBIT 18.4 25.7 +39.7%

EBIT margin in % (of sales revenues) 2.8 3.1 n/a

Earnings after tax -7.9 0.1 n/a

Earnings per share in EUR -0.56 -0.08 n/a

Equity ratio in % 24.3 23.8 n/a

Number of employees (average over the year) 10,609 10,890 +2.6%


The BAUER Group recorded a good first half-year 2017, with revenues

developing better than anticipated. This growth is mainly due to the

Construction and Equipment segments.

Total Group revenues increased by 21.1% to EUR 916.4 million (2016:

EUR 757.0 million) and sales revenues by 27.8% to EUR 830.2 million

(2016: EUR 649.8 million).

EBIT increased by 39.7% from EUR 18.4 million in the previous year to

EUR 25.7 million. The Group's earnings after tax were EUR 0.1 million

(2016: EUR -7.9 million).

Order backlog of the Group continued to develop well and grew by 3.4%

to EUR 1,044.7 million (2016: EUR 1,010.2 million). Order intake increased

significantly by 23.5% from EUR 771.6 million to EUR 953.0 million.

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, this

represents a significant increase in order volume in specialist foundation

engineering.

Forecast 2017: Because of the better-than-expected revenues

development in the first half year, the forecast for total Group revenues

was raised: about EUR 1.8 billion (before: about EUR 1.7 billion). The

earnings forecast remains unchanged: EBIT of about EUR 75 million and

earnings after tax of about EUR 23 to 28 million.

Highlights 6M 2017 – BAUER Group

BAUER BG 45 drilling rig – In-house exhibition


Table of Content

BAUER Group – Strategy, Chances & Markets

Appendix

Financials Q2/6M 2017 & 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.

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%


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)


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%


Worldwide network More than 110 subsidiaries in about 70 countries

Schrobenhausen

Kuala Lumpur Conroe Tianjin

Permanent Offices:

Construction

Equipment sales

Resources

Equipment production


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; 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: April 2017

o


2017 2018

2017 2018 2017 2018 2017 2018

2017 2018

2017 2018

2017 2018

2017 2018

2.0 2.0 3.5 3.6

2017 2018 4.5 4.8

1.1 2.0

1.7 2.1 2017 2018

6.4 6.4

1.4 1.4

6.6 6.2

3.1 3.0

2017 2018

2.3 2.5

0.2

1.7

2017 2018

2017 2018 1.7 1.6

1.6 1.5

2017 2018

2.6 3.5

2017 2018

2.6 3.4

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

Source: International Monetary Fund, World Economic Outlook Database, April 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

11


Regional breakdown Total Group revenues HY 2017 – Group

Total 916 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 %)

Total 1,586

in EUR million

Full year 2016

Africa 38 (4 %)

Americas 108 (12 %)

Asia-Pacific,


218 (24 %)

Middle East


Germany 264 (29 %)

EU excl. Germany 128 (14 %)

Europe (other)

45 (5 %)


Figures after deducting Other/Consolidation

Regional breakdown Total Group revenues HY 2017 – Segments

Total 426 in EUR million

Total 362 Total 128

Construction segment Equipment segment Resources segment

Africa 21 (5 %)

Americas 48 (11 %)

Asia-Pacific,


123 (29 %)

Middle East


Germany 93 (22 %)

EU excl. Germany

42 (10 %)

Europe

(other)

23 (5 %)

Africa 13 (4 %)

Americas 56 (15 %)

Asia-Pacific,


95 (26 %)

Middle East


Germany 81 (22 %)

EU excl.

Germany

78 (22 %)

Europe

(other)

21 (6 %)

Africa 4 (3 %)

Americas 4 (3 %)

Asia-Pacific, Far East

& Australia 0 (0 %)

Middle East

& Central Asia

21 (16 %)

Germany 90 (70 %)

EU excl. Germany

8 (6 %)

Europe

(other)

1 (1 %)


Table of Content


Appendix



763

996 1,008 1,010 1,045

0

300

600

900

1,200

2014 2015 2016 6M 2016 6M 2017

334 495 389 492

424 405

383 461

421

551

398

342

362

429

2014 2015 2016 2017

76.4

90.7

68.3

18.4 25.7

15.7

29.0

14.4

-7.9 0.1

-25

0

25

50

75

100

2014 2015 2016 6M 2016 6M 2017

1,560 1,656 1,586

757

916

1,376 1,379 1,397

650

830

0

450

900

1,350

1,800

2014 2015 2016 6M 2016 6M 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

+21.1%

+27.8%

∆ 6M

+3.4%

+23.5%

+39.7%

∆ 6M


4.3

3.2

5.3

2.9

172

223

332

437 575 526

Financials Construction segment – Highlights 6M 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%


Order backlog in EUR million

EBIT in EUR million

As the majority of projects commenced practically on time and capacity utilization

was excellent and spread evenly around the world, total Group revenues of the

segment increased by 31.6% to EUR 436.6 million.

EBIT decreased from EUR 5.3 million to EUR 2.9 million. It was negatively impacted

by individual unsatisfactory projects in Germany and Australia as well as from

effects related to exchange rate fluctuations. Earnings after tax amounted to EUR

-4.2 million (previous year: EUR -4.2 million).

Order backlog decreased by 8.4% to EUR 526.4 million. The segment has a strong

order book of 8.7 months. The order backlog in specialist foundation engineering

increased considerably, 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 19.7% to EUR 377.8 million

(previous year: EUR 315.6 million).

16

+31.6% -44.7%

-8.4%

2016 2017

6M

Q2

2016 2017 2016 2017


513 531 498 499

436 477 472 455

513 551 584 591 585 575 578 585 578

526

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

153

193 197 199 178 177 187 183

193 176

195 178

160 172

184 206 213 223

0

50

100

150

200

250


Financials Construction segment – Revenues and order development



Construction

17

+29.8%

-8.4%


7.5

12.9 13.4

22.3

159

222

325

438

115

186

223

312

Financials Equipment segment – Highlights 6M 2017

Market leader in specialist

foundation equipment

New products for mining, deep

drilling and offshore drilling

About 80% of sales abroad

Full year 2016:


EBIT margin: 6.8%

Key targets:

~ 40 % of total Group revenues

EBIT margin: 10 - 12%


Order intake in EUR million

EBIT in EUR million

Equipment

Total Group revenues increased significantly by 21.8% from EUR 312.4 million to

EUR 380.7 million and sales revenues by 40.1% from EUR 223.0 million to EUR

312.3 million.

EBIT increased strongly from EUR 13.4 million to EUR 22.3 million year-on-year.

Earnings after tax improved from EUR -0.1 million to EUR 6.6 million.

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 141.1 million to EUR 201.7 million as order

intake improved strongly from EUR 325.4 million to EUR 438.3 million. The trend

toward increased and more stable order intake, which started in the fall of 2016,

continued. Now the segment has an order book of 3.7 months.

18

+40.1% +34.7% +66.5%

6M

Q2

2016 2017 2016 2017 2016 2017


165 185

154

127

165 163 187

162 177

155 166

152 166 159 163

179

216 222

0

50

100

150

200

250


104 125 128

205

103 115

143

171

100

137 129

181

108 115 123

197

127

186

0

50

100

150

200

250


Financials Equipment segment – Revenues and order development

Order intake in EUR million


Equipment

19

+61.1%

+39.2%


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%


1.5

0.5

-0.1

0.2

294 317

67 65

139 128

Financials Resources segment – Highlights 6M 2017

Products & services related to

water, environment and natural

resources.

Service provider for the oil, gas

and mining industry

Full year 2016:


EBIT margin: n/a

Key targets:

~ 20% of total Group revenues

EBIT margin: 6 - 8%



EBIT in EUR million

Resources

Total Group revenues amounted to EUR 128.2 million, 7.7% down year-on-year

(EUR 139.0 million).

EBIT amounted to EUR 0.2 million (previous year: EUR -0.1 million) and earnings

after tax were EUR -4.0 million (previous year: EUR -4.4 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 are having an additional negative impact.

The segment has a solid order backlog with a volume of EUR 316.6 million, 7.6% up

on the previous year. Order intake increased by 5.8 % from EUR 156.9 million to

EUR 166.0 million. The segment has a sustainable order book of 14.4 months.

The segment is still stabilizing after many reorganization measures in recent years.

21

-7.7% +7.6% 6M

Q2

2016 2017 2016 2017 2016 2017


165 183 177

150 173 169 172

153 173 174

274 276 287 294 290 279 297

317

0

70

140

210

280

350


39

55 53

42 48

53 60

92

54 48

75

44

72 67 66

59 63 65

0

20

40

60

80

100


Financials Resources segment – Revenues and order development



Resources

22

-9.4%

+10.3%


724 777 781 672

773 776 778

646

779 752 749

665 743 762 736

677 740 712

0

160

320

480

640

800


686 721 717

605

711 720 736

604

726 701 700 629

672 709 684

608 674 646

0

160

320

480

640

800


23

Financials Working capital & net debt – typical cycle during the year

Net debt (excl. pensions) in EUR million

Working capital in EUR million -8.8%

-6.6%

Group


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


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


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%


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

26


Financials Income statement 6M 2017

in EUR '000 6M 2016 6M 2017 ∆ in %

Sales revenues (P&L) 649,767 830,242 27.8%

Consolidated revenues (P&L) 720,162 875,417 21.6%

Cost of materials -353,412 -468,492 32.6%

Personel expenses -182,918 -191,082 4.5%

Other operation expenses -121,111 -143,385 18.4%

EBITDA 62,721 72,458 15.5%

Depreciation of fixed assets -36,785 -39,640 7.8%

Write-downs of inventories due to use -7,576 -7,145 -5.7%

EBIT 18,360 25,673 39.8%

Financial income 2,174 5,499 n/a

Financial expenses -21,763 -19,749 -9.3%

Share of profit/loss of associated companies (equity method) 63 1,054 n/a

Earnings before tax (EBT) -1,166 12,477 n/a

Income tax expense -6,696 -12,345 84.4%

Earnings after tax -7,862 132 n/a

of which attributable to shareholders of BAUER AG -9,574 -1,303 n/a

of which attributable to non-controlling interests 1,712 1,435 -16.2%


Financials Balance sheet June 30, 2017

in EUR '000 June 30, 2016 June 30, 2017 ∆ in %

Assets 1,715,896 1,776,540 3.5%

A. Non-current assets 615,823 637,655 3.5%

I. Intangible assets 26,041 23,190 -10.9%

II. Property, plant and equipment and investment property 398,301 412,679 3.6%

III. Investments accounted for using the equity method 128,890 123,638 -4.1%

IV. Participations 3,460 9,746 n/a

V. Other non-current assets & deferred tax assets 59,131 68,402 15.7%

B. Current assets 1,100,073 1,138,885 3.5%

I. Inventories 498,005 447,205 -10.2%

II. Receivables and other assets 540,195 643,948 19.2%

III. Effective income tax refund claims 2,902 4,730 63.0%

IV. Cash and cash equivalents 42,621 43,002 0.9%

V. Assets classified as held for sale 16,350 0 n/a

Equity and liabilities 1,715,896 1,776,540 3.5%

A. Equity 417,328 422,386 1.2%

B. Non-current debt 428,701 621,515 45.0%

I. Provisions for pensions 136,408 122,332 -10.3%

II. Non-current liabilities & deferred tax liabilities 292,293 499,183 70.8%

C. Current debt 869,867 732,639 -15.8%

I. Financial liabilities 542,702 289,612 -46.6%

II. Other current liabilities 297,622 415,906 39.7%

III. Effective income tax obligations 11,348 7,849 -30.8%

IV. Provisions 18,195 19,272 5.9%


Financials Cash flow statement 6M 2017

in EUR '000 6M 2016 6M 2017 ∆ in %

Cash flow from operational activity -41,896 -92 n/a

Cash flow from investment activity -25,779 -27,719 7.5%

Cash flow from financing activity 65,167 38,638 -40.7%

Free Cash Flow -67,675 -27,811 n/a

Changes in liquid funds affecting payments -2,508 10,827 n/a

Influence of exchange rate movements on cash -2,277 -1,288 -43.4%

Total change in liquid funds -4,785 9,539 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 42,621 43,002 0.9%


Financials Forecast 2017 – Revenues target increased

2016 final

Total Group Revenues 1,586 EUR million old: ~ 1,700 EUR million

new: ~ 1,800 EUR million

Revenue growth -4.2 % 3 - 8 %

EBIT 68.3 EUR million ~ 75.0 EUR million

EBIT margin 4.9 % 7 - 9 %

Earnings after tax 14.4 EUR million ~ 23 - 28 EUR million

Equity ratio 25.5 % > 30 %

2017 forecast Long-term

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


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

Annual Report 2016 April 13, 2017

Annual Press Conference April 13, 2017

Analyst Conference April 13, 2017

Annual General Meeting June 29, 2017

Quarterly Statement Q1 2017 May 15, 2017

Half-Year Interim Report to June 30, 2017 August 11, 2017

Quarterly Statement 9M/Q3 2017 November 14, 2017

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


Table of Content


Appendix



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 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


What is specialist foundation? Building an excavation pit

Ground Water

Injection Anchor

Sealing Slab

Supporting Wall

Underpinning

Injection

Pile Foundation


What is specialist foundation used for? Applications for projects

Foundations Cut-off walls Excavation pits

Buildings Infrastructure Water – Energy Industry

Ground improvement


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 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.


Construction Diavik, Canada – Diaphragm wall for Diavik Diamond Mines


Construction Sydney, Australia – Foundation works for new hotel complex


Construction Dogern, Germany – Dike remediation with Mixed-in-Place

© euroluftbild.de


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.


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.


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

MC 128 MC 96 MC 64


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.


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


Resources Environment – Remediation of Kesslergrube landfill, Germany

© Source: Press picture Roche


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

6.9

-13.6 14.6 6.6

16.3

7.1

5.2

6.825.0

67.8

-44.7

-8.1

781.4

10.1

2016/

7.2

Mai 20172016/ Jan-May

1995 2015 2017/2016

-21.9

17.0

11.9

9.2

-25.3

-13.8

-4.3

10.2

2.1

18.8

16.8

6.3

10.7

-3.0

35.9

11.2

2.7

-12.3

0.4

7.5

7.8


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 – 08/2017)

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 24.42

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 ~400

48.19 %


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


Key Figures Time Line FY 2008 – Q2 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

(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

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

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

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

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

(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

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

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

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

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

(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

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

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

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

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

(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%

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%

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%

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%


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

IR presentation Q1/2014 - BAUER2011/08/17 · 17 -08 11 IR Presentation_Q2_2017 © BAUER AG, D-86529 Schrobenhausen 2 Key Figures 6M 2017 6M 2016 in EUR million 6M 2017 in EUR million