IR presentation Q1/2014 - BAUER · Group Presentation Q1 2020 May 13, 2020 Soil improvement at a railway embankment –Czech Republic

Group Presentation Q1 2020May 13, 2020

Soil improvement at a railway embankment – Czech Republic

© BAUER AG, D-86529 Schrobenhausen20-05-13 IR-Presentation_Q1_2020 2

Total Group revenues decreased by 5.0% from EUR 410.9 million to EUR 390.2 million. EBIT fell from EUR 10.5 million in

the previous year to EUR 6.3 million. Earnings after tax were EUR -5.0 million, compared to EUR -5.1 million in the

previous year.

The worldwide effects of the coronavirus pandemic and the potential consequences for our business fundamentally

entail a significant amount of uncertainty for the current financial year and outlook. The Group reacted with short-time

work for some companies in Germany and also initiated corresponding measures in other countries.

The order backlog increased significantly by 6.9% from EUR 1,022.6 million to EUR 1,092.7 million.

By the end of April, an amicable solution was reached with the financing partners for the syndicated loan agreements.

This is now being discussed with the other financing partners involved to the same extent.

Although the general situation involves uncertainty, we still expect to achieve a slight increase in total Group revenues,

a significant increase in EBIT and a significant increase in earnings after tax in the positive area for 2020.

HighlightsQ1 2020 – BAUER Group

Total Group revenues

EUR 390 million(-5.0%)

Sales revenues

EUR 334 million(-2.3%)

EBIT

EUR 6.3 million(-40.3%)

Earnings after tax

EUR -5.0 million(Q1 19: EUR -5.1 million)

Total assets

EUR 1,709 million(+0.5%)

Order backlog

EUR 1,093 million(+6.9%)

Net debt

EUR 644 million(+3.9%)

Equity ratio

22.0%(Q1 19: 25.1%)


Key FiguresQ1 2020

Q1 2019in EUR million

Q1 2020in EUR million

∆ Q1 in %

Total Group revenues, of which

- Germany

- International

- Construction

- Equipment

- Resources

- Other/Consolidation

410.9

134.0

276.9

170.2

185.8

69.1

-14.2

390.2

132.9

257.3

177.1

163.8

70.7

-21.4

-5.0%

-0.8%

-7.1%

+4.1%

-11.9%

+2.2%

n/a

Sales revenues 341.9 334.0 -2.3%

Order intake 419.8 455.2 +8.4%

Order backlog 1,022.6 1,092.7 +6.9%

EBITDA 32.7 31.1 -5.0%

EBIT 10.5 6.3 -40.3%

EBIT margin in % (of sales revenues) 3.1 1.9 n/a

Earnings after tax -5.1 -5.0 n/a

Earnings per share (in EUR) -0.37 -0.30 n/a

Total assets 1,700.1 1,708.9 +0.5%

Equity 426.8 375.9 -11.9%

Equity ratio in % 25.1 22.0 n/a

Employees (average over the year) 11,797 11,745 -0.4%


Table of Content

BAUER Group – Strategy, Chances & Markets

Appendix

Financials Q1 2020 & 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.

BAUER GroupMission & Strategy

EUR 1.6 billiontotal Group revenues

EUR 22.5 millionEBIT

1.5%EBIT margin

23.8%equity ratio

11,684employees FY 2019

Key targets

Revenue growth: 3 - 8% per year

EBIT margin: 7 - 9%

Equity ratio: > 30%


Equipment

673

Construction

Overseas

433

Construction

Domestic

220

Resources

269

BAUER GroupLongstanding healthy business development

1,600

1,000

1,400

800

600

200

1,200

400

1,800

Note: from 2003 based on IFRS figures

0

Total 1,595Total Group revenuesin EUR million (segment after deducting Other/Consolidation)

1980 1984 2000 2004 200819921988 1996 2012 2016 2019

© BAUER AG, D-86529 Schrobenhausen20-05-13 IR-Presentation_Q1_2020

980

1,208

1,527

1,278 1,304 1,372 1,436 1,504 1,5601,656

1,555

1,7721,686

1,595

0

400

800

1,200

1,600

2,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Sales

CAGR

835

1,033

1,291

1,097 1,1321,220

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

1,6681,589

1,471

0

400

800

1,200

1,600

2,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Sales revenuesin EUR million

Total Group revenuesin EUR million

7

CAGR

3.8%

BAUER GroupLongstanding healthy business development

CAGR

4.5%


Schrobenhausen

Kuala LumpurTianjinConroe

Worldwide networkMore than 110 subsidiaries in about 70 countries

Permanent Offices:

Construction

Equipment sales

Resources

Equipment production


Market: few large projects in

some countries

Bauer: low order backlog

Latin America

Market: stable markets in most

Western European countries; slow

development in Eastern Europe;

Russia remains weak

Bauer: good backlog in UK,

Netherlands and Hungary; Russia

weak

Europe

Market: positive development in

Thailand, Indonesia, Philippines;

Australia, Malaysia, Vietnam weak;

stable demand in China (equipment)

Bauer: major projects, especially in

Thailand and Philippines;

Far East

Market: few projects in some

countries, Egypt with slow growth

Bauer: focus only on single projects,

reasonable backlog in Egypt

Africa

Market: ongoing uncertainty as a

result of oil price and political

crisis.

Bauer: reasonable order backlog

in UAE and Qatar; major project in

Jordan; slight recovery in Saudi

Arabia; Lebanon very weak; bigger

projects in Bangladesh and Bhutan

Middle East & Central Asia

Market: the infrastructure market in

the USA is still strong

Bauer: good backlog with mainly

federal projects in the USA;

reasonable workload in Canada

USA / Canada Market: good, first signs of

weakening; growth in

infrastructure expected

Bauer: solid order backlog

Germany

9

BAUER GroupConstruction market environment vs. order backlog

+

+

o

o

+

+

+

+

-

o

+

+

o

+

-- weak - slightly weak o stable + growing ++ strong growthThe corona pandemic can have a significant

impact on this basic market assessment. Last update: April 2020


Regional breakdownTotal Group revenues FY 2019 – Group

Africa 80 (5%)

Americas 192 (12%)

Asia-Pacific,

Far East & Australia

266 (17%)


208 (13%)

Germany 519 (33%)

EU excl. Germany

259 (16%)

Europe (other)

71 (4%)

Africa 73 (4%)

Americas 171 (10%)

Asia-Pacific,

Far East &

Australia

428 (25%)

Middle East &

Central Asia

212 (13%)

Germany 467 (28%)

EU excl. Germany 276 (16%)

Europe (other)

59 (4%)

Full year 2018

Total 1,686

in EUR million

Total 1,595 in EUR million


Regional breakdownTotal Group revenues FY 2019 – Segments

Construction segment Equipment segment Resources segment

Figures after deducting Other/Consolidation

Africa 50 (8%)

Americas 47 (7%)

Asia-Pacific,


85 (13%)


136 (21%)

Germany 220 (34%)

EU excl.

Germany

89 (13%)

Europe

(other)

26 (4%)

Africa 18 (3%)

Americas 138 (20%)

Asia-Pacific,


180 (27%)


34 (5%)

Germany 111 (16%)

EU excl.

Germany

147 (22%)

Europe

(other)

45 (7%)

Africa 12 (4%)

Americas 7 (3%)

Asia-Pacific, Far East &

Australia 1 (0%)

Middle East &

Central Asia 38

(14%)

Germany 188 (70%)

EU excl.

Germany

23 (9%)

Europe (other)

0 (0%)

Total 653in EUR million

Total 673 Total 269


Table of Content


Appendix



379 429 420 455

455454 386

396422 450

411 394 321

2017 2018 2019 2020

1,7721,686

1,595

411 390

1,6681,589

1,471

342 334

0

400

800

1,200

1,600

2,000

2017 2018 2019 Q1 2019 Q1 2020

978 1,014 1,028 1,023 1,093

0

250

500

750

1,000

1,250

2017 2018 2019 Q1 2019 Q1 2020

89.6100.1

22.510.5 6.33.7

24.1

-36.6

-5.1 -5.0

-50

-25

0

25

50

75

100

125

2017 2018 2019 Q1 2019 Q1 2020

13

Q1

Q2

Q3

Q4

FinancialsRevenues, earnings & orders – Group

Revenues

Earnings

Order backlog

Order intake

in EUR million

in EUR million in EUR million

in EUR millionTotal Group revenues Sales revenues

EBIT Earnings after tax

+6.9%

+8.4%

1,741

-5.0%

-2.3%

∆ Q1

-40.3%

n/a

∆ Q1 1,7221,609


-0.05

-0.5

2019 2020170 177

2019 2020

546

649

2019 2020

FinancialsConstruction segment – Highlights Q1 2020

Construction

Global provider for specialist

foundation engineering services

Focus on complex, international

projects

~ 50/50 infrastructure / industrialTotal Group revenuesin EUR million

Order backlogin EUR million

EBITin EUR million

Total Group revenues were up by 4.1% compared to the previous year at EUR 170.2

million. EBIT decreased slightly compared to the previous year to EUR -0.5 million.

Overall, work was able to continue on most construction sites worldwide during the

first quarter. Our assumption that the coronavirus pandemic will impact the

progress of construction sites has been increasingly confirmed. In some countries

there are exit and travel restrictions that complicate logistics and facilities at

construction sites in terms of equipment, material and personnel. This problem

exists in many regions worldwide. On the other hand, we are still able to work well

in significant countries and most major projects have been able to continue.

Order backlog saw a significant increase of 18.9%, from EUR 545.8 million to EUR

649.1 million. It remained comparably high because some projects could not be

processed as quickly as planned. Order intake rose by 11.2% to EUR 187.6 million,

compared to EUR 168.7 million in 2019. The order book lasts for 11.6 months.

14

+4.1% +18.9%Full year 2019:

41% of total Group revenues

EBIT margin: -3.2%

Key targets:

~ 40% of total Group revenues (TGR)

EBIT margin: 4 - 6%

Key figures to be considered:

TGR, order backlog, EBIT


178 177187 183

193176

195178

156171

185201

211 221 227

177

151

176

210231

170 172 173154

177

0

50

100

150

200

250

Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19 Q1/20

436477 472 455

513551

584 591 585 575 578 585 578526 516 493 511 507 503

547 546 551

631 639 649

0

150

300

450

600

750

Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19 Q1/20

FinancialsConstruction segment – Revenues and order development



Construction

15

+4.1%

+18.9%


125

110

2019 2020

186 186

2019 2020

8.2

4.8

2019 2020

FinancialsEquipment segment – Highlights Q1 2020

Market leader in specialist

foundation equipment

New products for mining, deep

drilling and offshore drilling

About 80% of sales abroad Sales revenuesin EUR million

Order intakein EUR million

EBITin EUR million

Equipment Total Group revenues fell by 11.9% from EUR 185.8 million to EUR 163.8 million.

Sales revenues also dropped by 12.3% from EUR 125.3 million to EUR 110.0 million.

EBIT decreased from EUR 8.2 million to EUR 4.8 million. 2019 included a non-

operating charge of EUR 4.5 million that was attributable to the earnings-affecting

restructuring of a subsidiary, which was transferred from the Resources segment

to the Equipment segment. Without this effect, the decrease would have been even

more significant.

With EUR 186.2 million, order intake remained at the previous year’s level of EUR

185.8 million. Order backlog decreased by 12.8% from EUR 149.9 million to EUR

130.7 million.

The coronavirus pandemic led to decreasing orders from customers in most sales

areas. Since April, the market in China has revived significantly and we hope to

recover most of the backlog there by the end of this year. In contrast, we anticipate

restraint in equipment purchases in most other regions of the world.

16

-12.3%+0.2%Full year 2019:


EBIT margin: 10.0%

Key targets:

~ 40% of total Group revenues

EBIT margin: 10 - 12%


Sales revenues, order intake, EBIT

-42.3%


103115

143

171

100

137 129

181

108 115 123

197

127

186169

180

129

174

144

194

125

180

142164

110

0

50

100

150

200

250

Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19 Q1/20

165 163187

162177

155166

152 161 159 160171

212 218

148

182

227

170 160 167186 192

168

127

186

0

50

100

150

200

250

Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19 Q1/20

FinancialsEquipment segment – Revenues and order development

Order intakein EUR million

Sales revenuesin EUR million

Equipment

17

-12.3%

+0.2%


69 71

2019 2020

327313

2019 2020

2.7

1.5

2019 2020

FinancialsResources segment – Highlights Q1 2020

Products & services related to water,

environment and natural resources.

Competence areas: water treatment,

environmental remediation, waste

management, drilling technologies

and constructed wetlands



EBITin EUR million

Resources Total Group revenues increased by 2.2%, from EUR 69.1 million in the previous

year to EUR 70.7 million. EBIT fell from EUR 2.7 million to EUR 1.5 million. However,

2019 included a positive non-operating contribution of EUR 4.5 million. Without this

effect, EBIT would have improved by EUR 3.3 million compared to 2019.

In the first quarter, the segment was not very affected by the coronavirus

pandemic. The environmental business achieved good results, as did the business

with well materials. The future effects of the coronavirus pandemic are particularly

difficult to estimate due to the varied and broad range of products and services.

Order backlog decreased by 4.3% from EUR 326.9 million to EUR 312.8 million,

which can be attributed to the progress of the major Kesslergrube project. On the

other hand, the mining division of SCHACHTBAU NORDHAUSEN GmbH reported a

major contract of around EUR 40 million. Order intake rose significantly by 29.2%,

from EUR 79.6 million to EUR 102.8 million. The order book lasts for 13.7 months.

18

+2.2% -4.3%Full year 2019:


EBIT margin: n/a

Key targets:

~ 20% of total Group revenues (TGR)

EBIT margin: 6 - 8%


TGR, order backlog, EBIT

-43.3%


4853

60

92

5448

75

44

7167 66

5763 65 65

55 52

68 70 72 69 70 66 70 71

0

20

40

60

80

100

Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19 Q1/20

173 169 172153

173 174

274 276 287 294 290 279297

317 308336 330 321 324 316 327 322

295 281313

0

75

150

225

300

375

Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19 Q1/20

FinancialsResources segment – Revenues and order development



Resources

19

+2.2%

-4.3%


FinancialsWorking capital & net debt – Financing of future revenues

Bauer’s business model requires considerably more working capital than building construction companies

Net debt is needed to pre-finance the operating business (working capital)

Working capital mainly consists of

Inventory

Receivables

Construction segment

Construction contracts with short duration need approx. 2 - 3 months of pre-financing

(no advance payments, no front-loading of prices possible, comparably long time needed for final account settlement).

Receivables also includes litigations. On some jobs collection of money need a long time due to disputes with the customer.

However, valuation adjustments on receivables were only about 4% in average over the last years

Payment terms in some regions are 6 to 9 months

Equipment segment

Machinery parts need to be pre-ordered well in advance, because of delivery times of up to 12 months. Customer often need their

equipment in a few weeks. Therefore, approx. 3 months of the equipment during production is pre-financed.

Worldwide spare parts stores are needed for large customer base and a 24/7 after-sales service. A relatively large rental fleet is

needed for different contract types (e.g. rental purchase).

Resources segment

Outstanding customer payments (water business) and receivables on projects (environmental & drilling business)

75-80%15-20% ~5%

Construction Equipment Resources

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

20

Key facts

Why does the business model needs so much working capital?


629 608549 552

467

665 677

594562 564

0

150

300

450

600

750

2015 2016 2017 2018 2019

646 665 677

594562 564

171 185 158 183 199

123

3.8 3.6

4.3

3.3

2.8

4.6

0.0

1.0

2.0

3.0

4.0

5.0

0

160

320

480

640

800

2014 2015 2016 2017 2018 2019

1,656 1,5551,772 1,686 1,595

665 677594 562 564

0

360

720

1,080

1,440

1,800

2015 2016 2017 2018 2019

21

FinancialsWorking capital & net debt – Current development

Total Group revenues / net debtin EUR million

Net debtWorking capital

EBITDANet debt

Current development:

At EUR 643.8 million net debt was higher than in the

previous year (EUR 619.9 million).

Covenants for primary loans were exceeded as of the

end of 2019 due to the net loss.

By the end of April, an amicable solution was reached

with the financing partners for the syndicated loan

agreements. This is now being discussed with the

other financing partners involved to the same extent.

-3.7%

-15.2%

∆ 2015/

2019

Working capital / net debtin EUR million

Net debt / EBITDA ratioin EUR million

Net debtTotal Group revenues – Net debt/EBITDA


711 720 736

604

726 701 700

629672

709 684

608674 646 628

549 576624 629

552584 609 591

467537

0

160

320

480

640

800

Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19 Q1/20

773 776 778

646

779 752 749

665

743 762 736677

740 712 686

594639

678 679

562620 648 637

564

644

0

160

320

480

640

800

Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19 Q1/20

22

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

Net debt (excl. pensions)in EUR million

Working capitalin EUR million -8.1%

+3.9%


FinancialsIncome statement 3M 2020

in EUR '000 3M 2019 3M 2020 ∆ in %

Sales revenues (P&L) 341,898 333,996 -2.3%

Consolidated revenues (P&L) 394,940 376,208 -4.7%

Cost of materials -213,756 -184,186 -13.8%

Personel expenses -99,952 -106,919 7.0%

Other operation expenses -48,520 -54,028 11.4%

EBITDA 32,712 31,075 -5.0%

Depreciation of fixed assets -18,968 -22,128 16.7%

Write-downs of inventories due to use -3,236 -2,677 -17.3%

EBIT 10,508 6,270 -40.3%

Financial income 13,739 14,962 8.9%

Financial expenses -25,415 -25,746 1.3%

Share of profit/loss of associated companies (equity method) 638 2,247 n/a

Earnings before tax (EBT) -530 -2,267 n/a

Income tax expense -4,595 -2,696 n/a

Earnings after tax -5,125 -4,963 n/a

of which attributable to shareholders of BAUER AG -6,253 -5,165 n/a

of which attributable to non-controlling interests 1,128 202 n/a


Financials Balance sheet March 31, 2020

in EUR '000 March 31, 2019 March 31, 2020 ∆ in %

Assets 1,700,123 1,708,860 0.5%

Non-current assets 653,376 685,507 4.9%

Intangible assets 17,560 16,377 -6.7%

Property, plant and equipment and investment property 435,411 454,029 4.3%

Investments accounted for using the equity method 114,393 117,998 3.2%

Participations 8,350 8,806 5.5%

Other non-current assets & deferred tax assets 77,662 88,297 13.7%

Current assets 1,046,747 1,023,353 -2.2%

Inventories 477,365 501,104 5.0%

Less advances received on inventories -16,611 -15,356 -7.6%

460,754 485,748 5.4%

Receivables and other assets 534,428 475,448 -11.0%

Effective income tax refund claims 3,559 9,549 n/a

Cash and cash equivalents 48,006 52,608 9.6%

Equity and liabilities 1,700,123 1,708,860 0.5%

Equity 426,826 375,918 -11.9%

Non-current debt 493,839 374,494 -24.2%

Provisions for pensions 143,944 158,768 10.3%

Non-current liabilities & deferred tax liabilities 349,895 215,726 -38.3%

Current debt 779,458 958,448 23.0%

Financial liabilities 349,968 514,414 47.0%

Other current liabilities 383,215 407,949 6.5%

Effective income tax obligations 22,653 9,518 -58.0%

Provisions 23,622 26,567 12.5%


FinancialsCash flow statement 3M 2020

in EUR '000 3M 2019 3M 2020 ∆ in %

Cash flow from operational activity 8,335 -53,634 n/a

Cash flow from investment activity -15,964 -17,295 8.3%

Cash flow from financing activity -7,947 85,958 n/a

Free Cash Flow -7,629 -70,929 n/a

Changes in liquid funds affecting payments -15,576 15,029 n/a

Influence of exchange rate movements on cash 995 4 n/a

Total change in liquid funds -14,581 15,033 n/a

Cash and cash equivalents at beginning of reporting period 62,587 37,575 -40.0%

Cash and cash equivalents at end of reporting period 48,006 52,608 9.6%


FinancialsForecast 2020 – high amount of uncertainty for the outlook

2019 final

Total Group Revenues 1,594 EUR million slight increase

Revenue growth -5.4% 3 - 8 %

EBIT 22.5 EUR million significant increase

EBIT margin 1.5% 7 - 9 %

Earnings after tax -36.6 EUR millionsignificant increase in the

positive area

Equity ratio 23.8% > 30 %

2020 forecast Long-term goal

Slope stabilisation with BG 15 – Germany Largest water treatment plant – Nimr, OmanCompact cutter system for Grand Paris


BAUER Aktiengesellschaft

BAUER-Straße 1

86529 Schrobenhausen

Germany

Tel.: +49 8252 97-1218

[email protected]

www.bauer.de

April 9, 2020 Annual Report 2019

Analyst & Press Conference

May 13, 2020 Quarterly Statement Q1 2020

June 25, 2020 Annual General Meeting

August 13, 2020 Half-Year Interim Report to

June 30, 2020

November 13, 2020 Quarterly Statement 9M/Q3 2020

www.youtube.com/Bauergruppe

www.facebook.com/BauerAGgroup

Investor RelationsFinancial calendar & contact

Christopher Wolf

Head of Investor Relations

2020


Table of Content


Appendix



1790 · 1900 · 1902 · 1928 · 1948 · 1956 · 1958 · 1967 · 1969 · 1972 · 1975 · 1976 · 1984 · 1990 · 1992 · 1994 · 1998 · 2001 · 2019

BAUER GroupThe history – Two centuries of experience

End of 1970’s:

Start of

internationalisation

Early 1990’s:

Build up of

specialist construction/

environmental business

FY 2019:

Total Group

revenues

EUR 1.6

billion,

11,684

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 2000-2019


Michael Stomberg (CEO)

HSE

IT

Process Management

Quality Management

Florian Bauer

Digitalization

Development

Coordination

Training

Company Culture

Hartmut Beutler (CFO)

Financing & Treasury

Legal Affairs & Insurance

IR & Corporate

Communications

Facility Management

Media Design

Peter Hingott

Group Controlling &

Accounting

Human Resources

Group Purchasing

Management BoardBAUER AG


BAUER GroupThe three segments

31© 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 GroupChallenges of the world provide chances for the company

The megatrend of urbanization requires

construction solutions for the city of

the future

To deal with the scarcity of drinking

water, purification and supply

technologies are needed

The increasing mobility in society

demands new and renewed transport

routes

Changing social values are

fundamentally revolutionizing the

business world

UrbanizationInfrastructure Water

CultureA change in energy supply can only be

realized through comprehensive

construction works

The remediation of contaminated soil

is the key to sustainable utilization of

resources

Energy transitionEnvironment


ConstructionKey facts

Construction

Leading global provider for

specialist foundation engineering

services

33

Total Group revenues (incl. JV)

Order backlog

EBIT


EBIT margin: 4 - 6%

(2018: 5.4%, 2019: n/a)

Key facts

About 50 small-/mid-size local companies around the world

Central support for project management services

About 400 to 500 projects per year with a 50/50 infrastructure/industrial split

Figures are somewhat cyclical between the quarters – focus on the entire year

Market environment

Growing construction markets worldwide

Special foundation engineering is growing stronger than construction markets

Huge pent-up demand in developed countries and in emerging markets

Competition

Keller, Trevi, Soletanche Bachy

(worldwide)

Local competitors in each country

Current focus topics

Improving project and risk management, especially for major projects

Leading in digitalization solutions for our market

Key figures

Key targets


What is specialist foundation?Building an excavation pit

Permeation Grouting

Mixed-In-Place Method

Injection

Anchor

Diaphragm and

Cut-off Wall

Pile Foundation

Piling Retaining

Wall


What is specialist foundation used for?Applications

Foundationsfor the highest buildings in the world

Excavation Pits for every problem and requirement

Ground Improvementallows projects on weak ground

Cut-off Walls as solution for dams and dikes


ConstructionMunich, Germany – Foundation works for a boarding house


EquipmentKey facts

Market leader in specialist

foundation equipment

Equipment

37

Sales revenues (excl. JV)

Order intake

EBIT


EBIT margin: 10 - 12%

(2018: 11.7%, 2019: 10.0%)

Key facts

Provider for the full range of equipment for specialist foundation engineering as well

as for the exploration, mining and extraction of natural resources

Multi-branding strategy

About 80% of sales abroad

JV with Schlumberger for the production of deep drilling rigs (oil & gas)

Market environment

Growing construction markets worldwide lead to positive equipment demand

Strong position due to efforts regarding quality, efficiency and noise reduction

Growth potential with specialized machines for mining, water and offshore drilling

Competition

Trevi, Liebherr, Chinese manufactures

(e.g. Sany, XCMG)

Further competition regarding special product types


Focus on value analysis methods and purchase organization

Optimizing and increasing after-sales services

Key figures

Key targets


EquipmentWhole range of products for special foundation engineering


EquipmentProduct range: Deep Drilling

Joint Venture

of Bauer & Schlumberger

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

is necessary and therefore integrated drilling and rig solutions are of

growing importance.

Based on more than 40 years of experience in engineering and

manufacturing of drilling rigs, NeoRig develops and manufactures

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

productivity and ease of service in the deep drilling business.


ResourcesKey facts

Resources

40

Products & services for environmental

technology, mining, well construction

and water cleaning

Total Group revenues (incl. JV)

Order backlog

EBIT


EBIT margin: 6 - 8%

(2018: n/a, 2019: n/a)

Key facts

Three focus topics: water, environment, natural resources

Competence areas: water treatment, environmental remediation, waste management,

drilling technologies and constructed wetlands

Focus on key markets: Germany, Europe & Middle East

Market environment

Huge demand for environmental and water solutions

Outstanding market position with ground-breaking projects in the field of cleaning

drinking and process water, e.g. the biological water treatment plant in Oman

Competition

Fragmented competition for each single product and service area


Improvement of loss-making Jordan subsidiary, which is caused by overcapacities

Consistent proceeding of reorganization in the water related companies

Focus on new projects for the profitable environment business

Key figures

Key targets


ResourcesPool 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

EnvironmentWater Natural Resources


ResourcesWater – Process Water & Water Distribution Management


ResourcesEnvironment – World’s biggest reed bed treatment plant, Oman


Market environment – GermanyGerman construction market

Source: Federal Statistical Office, Statistical Office Bavaria

in EUR billion

Germany

2019

Employees (in 1,000)

Revenues 92.2

Building construction 50.8

Foundation engineering 41.4

Orders received *

in EUR billion

Housebuilding 19.6

Industrial building 36.3

Public sector

of which

public buildings 5.5

road building 14.2

underground structures 10.5

*) only companies > 20 employees

4.9

10.8

9.5

3.9

10.9

6.5

8.0

8.8

3.8

4.9

8.2

7.7

11.2

13.2

2.5

Dezember 20192018/ 2019/

2017 2018

in %

8.9

9.7

30.2

86.1

486.7

8.8

10.0 8.2

5.9

12.5


Building construction

positive cash contribution

Specialist foundation engineering

pre-financing need

Financials Working capital needs – Comparison with building construction

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

Construction contracts with short duration need

No advance payments, no front-loading of prices

possible approx. 2 - 3 months of pre-financing

Negative cash contribution during construction phase

Construction contracts with long durations

Advance payments, front-loading of prices

Positive cash contribution during construction phase


BAUER shareFacts & Figures

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

Share performance (01/2019 – 05/2020)

Bauer familyFree float

51.81 %

Shareholder structure

48.19 %

in EUR 2016 2017 2018 2019 2020

Earnings per share 0.66 0.16 1.32 -2.17 ---

Share price year end 11.40 30.00 12.16 15.10 ---

Share price highest 17.16 30.96 31.25 24.30 16.30

Share price lowest 9.45 11.72 12.08 12.62 9.76

Market Cap(in EUR million)

195.3 513.9 208.3 258.7 ~185

CDAX

Classic All Share

Prime All Share

ISIN DE0005168108

Reuters B5AG.DE

Bloomberg B5A GR


0.50

1.00 1.00

0.60 0.60

0.50

0.30

0.01

0.15 0.150.10 0.10 0.10

0.010.00

0.30

0.60

0.90

1.20

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

47

BAUER shareDividend policy

Dividend payment Dividend policy founded on a reasonable balance

between shareholders and company

fair participation of shareholders

maintaining continuity

safeguarding of the equity ratio

All shareholders shall participate in the success of the

business.

After some difficult years, we must continue to strike a

careful balance between continuity and shareholder

participation on the one hand, and safeguarding our

equity ratio on the other.

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. Our mid-term target is an equity ratio of more

than 30%.

In the medium term, the payout ratio should be about

25 to 30% of the reported earnings after tax.

in EUR per share

0.00

* Proposed; subject to the consent of the Annual General Meeting to be held on June 25, 2020

0.00 *


Key Figures Time LineFY 2008 – Q1 2020

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

Total Group revenues2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019 Q1 20

(in EUR million)

BAUER Group 1,527.2 1,275.8 1,304.0 1,371.8 1,435.8 1,504.2 1,560.2 1,656.4 1,554.7 448.2 454.1 476.6 393.1 1,772.0 370.8 421.5 443.5 450.3 1,686.1 410.9 420.7 407.8 355.3 1,594.7 390.2

Construction 700.9 570.0 615.4 606.6 655.2 741.7 725.6 742.9 713.1 211.0 220.5 226.9 176.6 835.0 150.8 176.2 210.0 230.6 767.6 170.2 172.2 172.6 153.8 668.8 177.1

Equipment 780.1 608.5 581.7 636.5 589.1 628.6 639.2 753.1 634.4 186.7 185.3 196.6 185.9 754.5 180.8 193.6 180.2 168.5 723.1 185.9 195.0 178.1 154.7 713.7 163.8

Resources 135.1 174.3 177.7 211.5 262.8 188.9 252.8 221.6 262.4 63.0 64.7 65.1 55.4 248.2 51.7 67.6 69.9 72.3 261.5 69.2 69.5 66.2 70.0 274.9 70.7

Sales revenues2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019 Q1 20

(in EUR million)

BAUER Group 1,290.8 1,096.5 1,131.7 1,219.6 1,344.4 1,402.2 1,375.7 1,379.0 1,396.9 378.9 451.2 435.4 402.2 1,667.9 318.4 398.7 405.1 466.9 1,589.1 341.9 403.5 362.2 363.3 1,470.9 334.0

Construction 584.3 487.9 505.8 506.2 579.1 657.5 646.6 650.8 614.5 196.6 206.4 214.5 166.3 783.8 143.2 164.2 202.1 216.8 726.3 161.6 162.8 160.5 140.8 625.7 161.8

Equipment 601.2 456.5 469.3 511.4 520.6 561.6 532.7 548.0 542.7 126.6 185.7 168.5 180.1 660.9 128.7 173.6 144.0 193.8 640.1 125.3 179.7 141.7 163.5 610.2 110.0

Resources 105.1 152.0 156.4 201.5 244.3 182.6 195.9 179.3 238.2 55.3 57.7 53.2 55.3 221.5 46.2 60.5 58.7 55.9 221.3 54.8 60.7 59.7 58.3 233.5 61.7

EBIT2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019 Q1 20

(in EUR million)

BAUER Group 167.5 84.4 88.4 82.3 72.0 30.1 76.4 90.7 70.3 8.5 30.2 27.7 23.2 89.6 11.0 23.1 22.7 43.3 100.1 10.4 24.8 13.3 -26.0 22.5 6.3

Construction 46.3 25.7 28.8 17.9 22.0 21.2 26.0 13.9 29.7 0.9 12.4 8.1 -1.8 19.6 2.7 2.1 8.0 26.3 39.1 0.0 4.2 -3.4 -20.7 -19.9 -0.5

Equipment 118.3 51.3 48.3 53.0 34.0 32.2 36.0 99.4 38.4 8.0 16.0 24.9 31.7 80.6 14.2 22.2 15.8 22.7 74.9 8.3 23.0 20.2 9.7 61.2 4.8

Resources 4.0 6.0 8.1 10.9 15.2 -24.0 15.9 -19.8 -3.7 -0.1 0.9 -5.3 -5.5 -10.0 -5.7 -1.0 -1.2 -3.2 -11.0 2.7 -2.2 -3.0 -13.7 -16.2 1.5

EBIT margin2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019 Q1 20

(in %)

BAUER Group 13.0% 7.7% 7.8% 6.7% 5.4% 2.1% 5.6% 6.6% 5.0% 2.2% 6.7% 6.4% 5.8% 5.4% 3.5% 5.8% 5.6% 9.3% 6.3% 3.0% 6.1% 3.7% -7.2% 1.5% 1.9%

Construction 7.9% 5.3% 5.7% 3.5% 3.8% 3.2% 4.0% 2.1% 4.8% 0.5% 6.0% 3.8% -1.1% 2.5% 1.9% 1.3% 3.9% 12.1% 5.4% 0.0% 2.6% -2.1% -14.7% -3.2% -0.3%

Equipment 19.7% 11.2% 10.3% 10.4% 6.5% 5.7% 6.8% 18.1% 7.1% 6.4% 8.6% 14.8% 17.6% 12.2% 11.0% 12.8% 11.0% 11.7% 11.7% 6.6% 12.8% 14.3% 6.0% 10.0% 4.3%

Resources 3.8% 3.9% 5.2% 5.4% 6.2% -13.1% 8.1% -11.0% -1.6% -0.2% 1.5% -10.0% -9.9% -4.5% -12.3% -1.6% -2.0% -5.7% -5.0% 4.9% -3.7% -4.9% -23.5% -6.9% 2.5%


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 - BAUER · Group Presentation Q1 2020 May 13, 2020 Soil improvement at a railway embankment –Czech Republic