May 14, 2019 - BAUER · Russia remains weak Bauer: UK, Netherlands, Hungary positive; good backlog in Eastern Europe Europe Market: positive development in most markets; Malaysia,

Group Presentation Q1 2019May 14, 2019

Bauma 2019 – Munich, Germany

© BAUER AG, D-86529 Schrobenhausen19-05-14 IR-Presentation_Q1_2019 2

Total Group revenues significantly increased by 10.8%, from EUR 370.8 million to EUR 410.9 million compared to Q1 2018. All three segments showed gains, most significantly Construction and Resources, but also the Equipment segment had a slight increase compared to the good result in the previous year.

EBIT fell slightly from EUR 11.1 million in the previous year to EUR 10.5 million. Earnings after tax were EUR -5.1 million. In the previous year they totaled EUR -5.8 million.

At EUR 1,022.6 million, the order backlog stands further on at a very pleasing level.

The seasonal increase of net debt in the first quarter of 2019 compared to FY 2018, to EUR 619.9 million, is in line with our expectations.

Forecast 2019 confirmed: total Group revenues of around EUR 1.7 billion and EBIT of around EUR 95 million. We expect earnings after tax to be significantly higher than in the previous year.

HighlightsQ1 2019 – BAUER GroupTotal Group revenues

EUR 411 million(+10.8%)

Sales revenues

EUR 342 million(+7.4%)

EBIT

EUR 10.5 million(-5.0%)

Earnings after tax

EUR -5.1 million(Q1 18: EUR -5.8 million)

Total assets

EUR 1,700 million(+2.7%)

Order backlog

EUR 1,023 million(-1.3%)

Net debt

EUR 619.9 million(-3.0%)

Equity ratio

25.1%(Q1 18: 24.5%)


Key FiguresQ1 2019

Q1 2018in EUR million

Q1 2019in EUR million

∆ Q1 in %

Total Group revenues, of which- Germany- International- Construction- Equipment- Resources

- Other/Consolidation

370.8128.7242.1150.9180.9

51.7

-12.7

410.9134.0276.9170.2185.8

69.1

-14.2

+10.8%+4.1%

+14.4%+12.8%

+2.7%+33.8%

n/a

Sales revenues 318.4 341.9 +7.4%Order intake 429.0 419.8 -2.1%Order backlog 1,036.0 1,022.6 -1.3%EBITDA 33.2 32.7 -1.4%EBIT 11.1 10.5 -5.0%EBIT margin in % (of sales revenues) 3.5 3.1 n/aEarnings after tax -5.8 -5.1 n/aEarnings per share (in EUR) -0.35 -0.37 n/aTotal assets 1,655.8 1,700.1 +2.7%Equity 405.0 426.8 +5.4%Equity ratio in % 24.5 25.1 n/aEmployees (average over the year) 10,877 11,797 +8.5%


Table of Content

BAUER Group – Strategy, Chances & Markets

Appendix

Financials Q1 2019 & 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 servicesfor related markets.

Highly innovative products and services related to water, environmentand natural resources.

Diaphragm wall for dam remediation – Germany

BAUER GroupMission & Strategy

EUR 1.7 billiontotal Group revenues

EUR 100 millionEBIT

6.3%EBIT margin

26.5%equity ratio

11,643employees FY 2018

Key targets Revenue growth: 3 - 8% per year

EBIT margin: 7 - 9%

Equity ratio: > 30%


Equipment672

ConstructionOverseas566

ConstructionDomestic189

Resources259

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

1980 1982 1984 1986 1996 1998 2000 2002 2004 200619901988 1992 1994 2008 2010 2012 2014 2016

0

Total 1,686Total Group revenuesin EUR million (segment after deducting Other/Consolidation)

2018

© BAUER AG, D-86529 Schrobenhausen19-05-14 IR-Presentation_Q1_2019

8351,033

1,2911,097 1,132 1,220

1,344 1,402 1,376 1,379 1,3971,668 1,589

0

400

800

1,200

1,600

2,000

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

9801,208

1,5271,278 1,304 1,372 1,436 1,504 1,560 1,656 1,555

1,772 1,686

0

400

800

1,200

1,600

2,000

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

Sales revenuesin EUR million

Total Group revenuesin EUR million

7

CAGR4.6%

BAUER GroupLongstanding healthy business development

CAGR5.5%


Worldwide networkMore than 110 subsidiaries in about 70 countries

Schrobenhausen

Kuala LumpurTianjin

Permanent Offices:ConstructionEquipment salesResourcesEquipment production

Conroe


Market: repeatedly large projects in some countries

Bauer: reasonable order backlog

Latin America

Market: recovery in most West European countries; slow development in Eastern Europe; Russia remains weak

Bauer: UK, Netherlands, Hungary positive; good backlog in Eastern Europe

Europe

Market: positive development inmost markets; Malaysia, Singapore and Hong Kong weak

Bauer: high order backlog, especially Thailand and Philippines;

Far East

Market: repeatedly large projects in some countries, Egypt still growing

Bauer: focus only on single projects, high backlog in Egypt

Africa

Market: ongoing uncertainty as a result of oil price; some projects stopped; sanctions against Qatar;

Bauer: low order backlog, major project in Jordan

Middle East

Market: big need for infrastructure investments in USA, Canada weaker

Bauer: few larger projects in USA; Canada a bit weak

USA / CanadaMarket: infrastructure budgets raised

Bauer: high order backlog

Germany

9

BAUER GroupConstruction market environment vs. order backlog

+

o

oo

+++

o

+

--

+

+

oo

-- weak - slightly weak o stable + growing ++ strong growthLast update: May 2019


Africa 73 (4 %)

Americas 171 (10 %)

Asia-Pacific,Far East & Australia428 (25 %)

Middle East& Central Asia 212 (13 %)

Germany 467 (28 %)

EU excl. Germany 276 (16 %)

Europe (other)59 (4 %)

Regional breakdownTotal Group revenues FY 2018 – GroupTotal 1,686in EUR million

Africa 63 (3 %)

Americas 228 (13 %)


Middle East& Central Asia 201 (11 %)

Germany 478 (27 %)

EU excl. Germany258 (15 %)


Full year 2017Total 1,772in EUR million


Africa 48 (6 %)

Americas 44 (6 %)


Middle East & Central Asia 147 (19 %)

Germany 189 (25 %)


Europe(other)15 (2 %)

Africa 15 (2 %)

Americas 120 (18 %)


Middle East & Central Asia 27 (4 %)

Germany 100 (15 %)


Europe(other)42 (6 %)

Africa 10 (4 %)Americas 7 (3 %)

Asia-Pacific,Far East & Australia 1 (0 %)

Middle East & Central Asia38 (15 %)

Germany 178 (68 %)



Regional breakdownTotal Group revenues FY 2018 – Segments

Total 755in EUR million

Total 672 Total 259

Construction segment Equipment segment Resources segment

Figures after deducting Other/Consolidation


Table of Content


Appendix



1,5551,772 1,686

371 411

1,3971,668 1,589

318 342

0

400

800

1,200

1,600

2,000

2016 2017 2018 Q1 2018 Q1 2019

379 484 429 420

381454 386

396409

422

411394 485

2016 2017 2018 2019

1,008 978 1,014 1,036 1,023

0

250

500

750

1,000

1,250

2016 2017 2018 Q1 2018 Q1 2019

70.389.6

100.1

11.1 10.514.43.7

24.1

-5.8 -5.1

-25

0

25

50

75

100

125

2016 2017 2018 Q1 2018 Q1 2019

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

1,567

-1.3%

-2.1%

1,741

+10.8%+7.4%

∆ Q1

-5.0%n/a

∆ Q1 1,722


2.7151

170511 546

FinancialsConstruction segment – Highlights Q1 2019

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 EUR 170.2 million, which is a significant increase of 12.8% compared to EUR 150.9 million in the previous year. This increase is the result of the global portfolio of ongoing projects.

EBIT nearly entered the positive range, after an unusually good value of EUR 2.7 million was reached due to projects in the previous year.

Order backlog increased by 6.8% from EUR 511.3 million to EUR 545.8 million. Order intake of EUR 168.7 million was 0.5% lower than the previous year's level of EUR 169.5 million. Overall, the order backlog represents a good basis for achieving our targets. The order book lasts for 8.5 months.

14

+12.8% +6.8%

2018 2019 2018 2019 2018 2019

Full year 2018: 45% of total Group revenues EBIT margin: 5.4%Key targets: ~ 40% of total Group revenues (TGR) EBIT margin: 4 - 6%

Key figures to be considered: TGR, order backlog, EBIT

0.0


153

193 197 199178 177 187 183 193

176195

178156

171 185201 211 221 227

177151

176210 231

170

0

50

100

150

200

250

Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19

513 531 498 499436

477 472 455513

551 584 591 585 575 578 585 578 526 516 493 511 507 503547 546

0

125

250

375

500

625

Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19

FinancialsConstruction segment – Revenues and order development



Construction

15

+12.8%

+6.8%


129 125 227

186

14.2

8.2

FinancialsEquipment segment – Highlights Q1 2019

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 in the Equipment segment increased by 2.7%, from EUR

180.9 million to EUR 185.8 million. Sales revenues fell slightly by 2.5%, from EUR 128.6 million to EUR 125.3 million.

EBIT decreased from EUR 14.2 million to EUR 8.2 million year-on-year. Included in this is a non-operating charge in the amount of EUR 4.5 million, which is attributable to a earnings-affecting restructuring of a subsidiary, which was transferred from the Resources segment to the Equipment segment. Without the effect, the decrease was 10.6%. The opposite effect is seen in the earnings figures of the Resources segment.

Order intake decreased by 18.0%, from EUR 226.6 million to EUR 185.8 million, with the first quarter of 2018 having reached an extraordinarily high level. Order backlogdecreased by 23.2%, from EUR 195.1 million to EUR 149.9 million.

16

-2.5%-18.0%Full year 2018:

40% of total Group revenues EBIT margin: 11.7%Key targets: ~ 40% of total Group revenues EBIT margin: 10 - 12%Key figures to be considered: Sales revenues, order intake, EBIT 2018 2019 2018 2019 2018 2019

-41.9%


104125 128

205

103 115143

171

100137 129

181

108 115 123

197

127

186169 180

129

174144

194

125

0

50

100

150

200

250

Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19

165185

154127

165 163187

162 177155 166 152 161 159 160 171

212 218

148182

227

170 160 167186

0

50

100

150

200

250

Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19

FinancialsEquipment segment – Revenues and order development

Order intakein EUR million

Sales revenuesin EUR million

Equipment

17

-2.5%

-18.0%


186163 159

133 130

162

0

50

100

150

200

2012 2013 2014 2015 2016 2017

521 562 545 548 543

661

0

175

350

525

700

2012 2013 2014 2015 2016 2017

FinancialsEquipment segment – Market development vs. Bauer

Sales revenues of the Bauer Equipment segmentin EUR million

Revenues of 50 largest construction equipment manufacturersin USD billion

Equipment

Source: internationalconstruction (04/2018)

Revenues of the world’s 50 largest construction

equipment manufacturers saw a tremendous

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

decline with 50% was even worse.

The very competitive situation because of the

surplus production capacities in China is easing.

In 2017 there was a reasonable growth of 22%.

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

Bauer passed through this turbulences between

2012 and 2016 with a small increase in revenues

and profited from the overall growth in 2017 also

with a 22% increase of sales.

This development shows the success of the efforts

made regarding, quality, efficiency and noise

reduction of Bauer equipment.

18

-13%

+24%


52

69 330 327

-5.7

2.7

FinancialsResources segment – Highlights Q1 2019

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 were significantly higher than in the previous year, at EUR

69.1 million compared to EUR 51.7 million, an increase of 33.8%.

EBIT improved from EUR -5.7 million to EUR 2.7 million. This includes the non-operating contribution to earnings of EUR 4.5 million, which was described in the Equipment segment. Independent of this effect, a better operative development is seen in this segment.

The order backlog has decreased only slightly by 0.8%, from EUR 329.6 million to EUR 326.9 million. Order intake increased 74.8%, from EUR 45.5 million to EUR 79.6 million. The order book lasts for 15 months.

Overall, we expect a better development for the segment than in previous years.

19

+33.8%-0.8%Full year 2018:

15% of total Group revenues EBIT margin: n/aKey targets: ~ 20% of total Group revenues (TGR) EBIT margin: 6 - 8%Key figures to be considered: TGR, order backlog, EBIT 2018 2019 2018 2019 2018 2019


39

55 5342

48 5360

92

5448

75

44

71 67 6657 63 65 65

55 52

68 70 72 69

0

20

40

60

80

100

Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19

165 183 177150

173 169 172 153 173 174

274 276 287 294 290 279 297 317 308336 330 321 324 316 327

0

75

150

225

300

375

Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19

FinancialsResources segment – Revenues and order development



Resources

20

+33.8%

-0.8%


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, there were no large valuation adjustments on receivables in the last years (less than 4% of receivables in average p.a.)

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 Resources20-25%55-60% 15-20%

21

Key facts

Why does the business model needs so much working capital?


1,504 1,560 1,6561,555

1,772 1,686

672 646 665 677 594 562

0

360

720

1,080

1,440

1,800

2013 2014 2015 2016 2017 2018

605 604 629 608549 552

672 646 665 677594 562

0

150

300

450

600

750

2013 2014 2015 2016 2017 2018

22

FinancialsWorking capital & net debt – Current development

Total Group revenues / net debtin EUR million

Net debtWorking capital

EBITDANet debt

Current development: Net debt fell very sharply by 17.7% to EUR 561.9

million in the last two years. Inventories, finished goods and receivables are lower due to the improvement of the operating business as well as our own implemented measures.

Net debt to EBITDA ratio has improved substantially. Our target range is a ratio of below 3.0 yearend, which is a comfortable area for our business model.

+12.1%-16.4%

∆ 2013/2018

Working capital / net debtin EUR million

Net debt / EBITDA ratioin EUR million

Net debtTotal Group revenues – Net debt/EBITDA


724 777 781672

773 776 778

646

779 752 749665

743 762 736677

740 712 686594 639 678 679

562620

0

160

320

480

640

800

Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19

686 721 717

605711 720 736

604

726 701 700629 672 709 684

608674 646 628

549 576624 629

552 584

0

160

320

480

640

800

Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19

23

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

Net debt (excl. pensions)in EUR million

Working capitalin EUR million +1.3%

-3.0%


FinancialsIncome statement 3M 2019in EUR '000 3M 2018 3M 2019 ∆ in %

Sales revenues (P&L) 318,403 341,898 7.4%

Consolidated revenues (P&L) 358,972 394,940 10.0%

Cost of materials -183,410 -213,756 16.5%

Personel expenses -92,095 -99,952 8.5%

Other operation expenses -50,274 -48,520 -3.5%

EBITDA 33,193 32,712 -1.4%

Depreciation of fixed assets -18,759 -18,968 1.1%

Write-downs of inventories due to use -3,378 -3,236 -4.2%

EBIT 11,056 10,508 -5.0%

Financial income 8,809 13,739 56.0%

Financial expenses -19,708 -25,415 29.0%

Share of profit/loss of associated companies (equity method) -69 638 n/a

Earnings before tax (EBT) 88 -530 n/a

Income tax expense -5,859 -4,595 n/a

Earnings after tax -5,771 -5,125 n/a

of which attributable to shareholders of BAUER AG -5,917 -6,253 n/a

of which attributable to non-controlling interests 146 1,128 n/a


Financials Balance sheet March 31, 2019in EUR '000 March 31,2018 March 31, 2019 ∆ in %Assets 1,655,776 1,700,123 2.7%

Non-current assets 628,196 653,376 4.0%Intangible assets 20,126 17,560 -12.7%Property, plant and equipment and investment property 405,310 435,411 7.4%Investments accounted for using the equity method 120,404 114,393 -5.0%Participations 10,650 8,350 -21.6%Other non-current assets & deferred tax assets 71,706 77,662 8.3%Current assets 1,027,580 1,046,747 1.9%Inventories 471,654 477,365 1.2%Less advances received on inventories -18,869 -16,611 -12.0%

452,785 460,754 1.8%Receivables and other assets 512,873 534,428 4.2%Effective income tax refund claims 3,268 3,559 8.9%Cash and cash equivalents 58,654 48,006 -18.2%

Equity and liabilities 1,655,776 1,700,123 2.7%

Equity 404,990 426,826 5.4%Non-current debt 567,907 493,839 -13.0%Provisions for pensions 129,251 143,944 11.4%Non-current liabilities & deferred tax liabilities 438,656 349,895 -20.2%Current debt 682,879 779,458 14.1%Financial liabilities 288,034 349,968 21.5%Other current liabilities 364,314 383,215 5.2%Effective income tax obligations 15,697 22,653 44.3%Provisions 14,834 23,622 59.2%


FinancialsCash flow statement 3M 2019in EUR '000 3M 2018 3M 2019 ∆ in %

Cash flow from operational activity -24,188 8,335 n/a

Cash flow from investment activity -15,096 -15,964 5.7%

Cash flow from financing activity 51,412 -7,947 n/a

Free Cash Flow -39,284 -7,629 n/a

Changes in liquid funds affecting payments 12,128 -15,576 n/a

Influence of exchange rate movements on cash -740 995 n/a

Total change in liquid funds 11,388 -14,581 n/a

Cash and cash equivalents at beginning of reporting period 47,266 62,587 32.4%

Cash and cash equivalents at end of reporting period 58,654 48,006 -18.2%


FinancialsForecast 2019 – Increase of earnings after tax

2018 final

Total Group Revenues 1,686 EUR million ~ 1,700 EUR million

Revenue growth -4.9% 3 - 8 %

EBIT 100.1 EUR million ~ 95 EUR million

EBIT margin 6.3% 7 - 9 %

Earnings after tax 24.1 EUR million significantly higher than 2018

Equity ratio 26.5% > 30 %

2019 forecast Long-term goal

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


BAUER AktiengesellschaftBAUER-Straße 186529 SchrobenhausenGermany

Tel.: +49 8252 [email protected]

April 15, 2019 Annual Report 2018Analyst & Press Conference

May 14, 2019 Quarterly Statement Q1 2019

June 27, 2019 Annual General Meeting

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

November 14, 2019 Quarterly Statement 9M/Q3 2019

www.youtube.com/Bauergruppe

www.facebook.com/BauerAGgroup

Investor RelationsFinancial calendar & contact

Christopher WolfHead of Investor Relations

2019


Table of Content


Appendix



1790 · 1900 · 1902 · 1928 · 1948 · 1956 · 1958 · 1967 · 1969 · 1972 · 1975 · 1976 · 1984 · 1990 · 1992 · 1994 · 1998 · 2001 · 2018

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 2018:Total Group

revenues EUR 1.7 billion, 11,643

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 2000-2018


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

32© 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 factsConstruction

Leading global provider for specialist foundation engineering

services

34

Total Group revenues (incl. JV) Order backlog EBIT

~ 40% of total Group revenues EBIT margin: 4 - 6%

(2018: 5.4%)

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 andCut-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


ConstructionYork, UK – Shaft sinking for Woodsmith Mine


EquipmentKey facts

Market leader in specialistfoundation equipment

Equipment

38

Sales revenues (excl. JV) Order intake EBIT


(2018: 11.7%)

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

Current focus topics 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 Ventureof 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 factsResources

41

Products & services for environmental technology, mining, well construction

and water cleaning

Total Group revenues (incl. JV) Order backlog EBIT


(2018: 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

Current focus topics 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

Germany2018

Employees (in 1,000)

Revenues 85.2Building construction 47.2Foundation engineering 38.0

Orders received *in EUR billion

Housebuilding 17.8Industrial building 33.3Public sectorof which

public buildings 4.9road building 13.7underground structures 9.7

*) only companies > 20 employees

28.4

79.5

463.7

12.5

6.6 10.0

7.2

6.8

in %

13.2

11.2

December 2018 2017/ 20182016 2017

3.85.3

7.8

4.9

10.8

9.5

5.0

6.9

11.4

5.9

8.5

9.8

8.8

2.5

5.9


2019 2020

2019 2020 2019 2020

46

2019 2020

2019 2020

2019 2020

2019 2020

1.8 1.73.3 3.6

2019 20204.4 4.8

1.42.4

2019 2020

6.3 6.3

1.6 1.7

6.3 6.1

2.12.8

2019 2020

2.3 1.92019 2020

1.3 1.5

0.8 1.4

2019 2020

3.5 3.7 2019 2020

1.33.2

Global economic situationIMF projection of the real annual GDP growth in %

Source: International Monetary Fund, World Economic Outlook Database, April 2019

United States

Germany

Middle East & North Africa

Sub-Saharan Africa

World

Russia

Australia

Developing Asia

Latin America

Europe

China

AdvancedEconomies

Emerging Markets & Develop. Economies


Building constructionpositive cash contribution

Specialist foundation engineeringpre-financing need

Financials Working capital needs – Comparison with building construction

EUR

12 24 months

Positive cash contribution

Negative cash contribution

Con

trac

t val

ue

EUR

Negative cash contribution

12 24 months

Con

trac

t val

ue

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 (01/2018 – 05/2019)

Bauer familyFree float

51.81 %

Shareholder structure

48.19 %

in EUR 2015 2016 2017 2018 2019

Earnings per share 1.73 0.66 0.16 1.32 ---

Share price year end 17.40 11.40 30.00 12.16 ---

Share price highest 19.20 17.16 30.96 31.25 22.75

Share price lowest 13.85 9.45 11.72 12.08 12.62

Market Cap(in EUR million) 298.1 195.3 513.9 208.3 ~385

CDAXClassic All SharePrime All Share

ISIN DE0005168108Reuters B5AG.DEBloomberg B5A GR


0.50

1.00 1.00

0.60 0.600.50

0.30

0.01

0.15 0.150.10 0.10 0.10

0.00

0.30

0.60

0.90

1.20

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

49

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 27, 2019

*


Key Figures Time LineFY 2008 – Q1 2019

In all three segments, total Group revenues and EBIT figures of Q4 2015 and FY 2015 were influenced by exceptional earnings.Quarters and FY’s of 2016 and 2017 were adjusted.

Total Group revenues 2008 2009 2010 2011 2012 2013 2014 2015 Q1 16 Q2 16 Q3 16 Q4 16 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19(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 1,656.4 374.0 372.0 387.3 421.3 1,554.7 448.2 454.1 476.6 393.1 1,772.0 370.8 421.5 443.5 450.3 1,686.1 410.9

Construction 700.9 570.0 615.4 606.6 655.2 741.7 725.6 742.9 156.3 171.3 185.0 200.6 713.1 211.0 220.5 226.9 176.6 835.0 150.8 176.2 210.0 230.6 767.6 170.2Equipment 780.1 608.5 581.7 636.5 589.1 628.6 639.2 753.1 159.6 146.7 150.8 177.3 634.4 186.7 185.3 196.6 185.9 754.5 180.8 193.6 180.2 168.5 723.1 185.8Resources 135.1 174.3 177.7 211.5 262.8 188.9 252.8 221.6 71.4 67.4 66.4 57.4 262.4 63.0 64.7 65.1 55.4 248.2 51.7 67.6 69.9 72.3 261.5 69.1

Sales revenues 2008 2009 2010 2011 2012 2013 2014 2015 Q1 16 Q2 16 Q3 16 Q4 16 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19(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 1,379.0 317.6 332.2 342.8 404.3 1,396.9 378.9 451.2 435.4 402.2 1,667.9 318.4 398.7 405.1 466.9 1,589.1 341.9

Construction 584.3 487.9 505.8 506.2 579.1 657.5 646.6 650.8 143.6 154.9 162.7 153.3 614.5 196.6 206.4 214.5 166.3 783.8 143.2 164.2 202.1 216.8 726.3 161.5Equipment 601.2 456.5 469.3 511.4 520.6 561.6 532.7 548.0 107.8 115.2 123.0 196.7 542.7 126.6 185.7 168.5 180.1 660.9 128.7 173.6 144.0 193.8 640.1 125.3Resources 105.1 152.0 156.4 201.5 244.3 182.6 195.9 179.3 65.9 61.6 56.7 54.0 238.2 55.3 57.7 53.2 55.3 221.5 46.2 60.5 58.7 55.9 221.3 54.7

EBIT 2008 2009 2010 2011 2012 2013 2014 2015 Q1 16 Q2 16 Q3 16 Q4 16 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19(in EUR million)BAUER Group 167.5 84.4 88.4 82.3 72.0 30.1 76.4 90.7 9.8 13.3 21.3 25.9 70.3 8.5 30.2 27.7 23.2 89.6 11.0 23.1 22.7 43.3 100.1 10.5

Construction 46.3 25.7 28.8 17.9 22.0 21.2 26.0 13.9 4.8 2.6 10.4 12.0 29.7 0.9 12.4 8.1 -1.8 19.6 2.7 2.1 8.0 26.3 39.1 0.0Equipment 118.3 51.3 48.3 53.0 34.0 32.2 36.0 99.4 5.8 8.8 8.0 15.8 38.4 8.0 16.0 24.9 31.7 80.6 14.2 22.2 15.8 22.7 74.9 8.2Resources 4.0 6.0 8.1 10.9 15.2 -24.0 15.9 -19.8 -1.1 1.3 3.5 -7.6 -3.7 -0.1 0.9 -5.3 -5.5 -10.0 -5.7 -1.0 -1.2 -3.2 -11.0 2.7

EBIT margin 2008 2009 2010 2011 2012 2013 2014 2015 Q1 16 Q2 16 Q3 16 Q4 16 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19(in %)BAUER Group 13.0% 7.7% 7.8% 6.7% 5.4% 2.1% 5.6% 6.6% 3.1% 4.0% 6.2% 6.4% 5.0% 2.2% 6.7% 6.4% 5.8% 5.4% 3.5% 5.8% 5.6% 9.3% 6.3% 3.1%

Construction 7.9% 5.3% 5.7% 3.5% 3.8% 3.2% 4.0% 2.1% 3.3% 1.7% 6.4% 7.8% 4.8% 0.5% 6.0% 3.8% -1.1% 2.5% 1.9% 1.3% 3.9% 12.1% 5.4% 0.0%Equipment 19.7% 11.2% 10.3% 10.4% 6.5% 5.7% 6.8% 18.1% 5.4% 7.6% 6.5% 8.0% 7.1% 6.4% 8.6% 14.8% 17.6% 12.2% 11.0% 12.8% 11.0% 11.7% 11.7% 6.6%Resources 3.8% 3.9% 5.2% 5.4% 6.2% -13.1% 8.1% -11.0% -1.7% 2.1% 6.2% -14.1% -1.6% -0.2% 1.5% -10.0% -9.9% -4.5% -12.3% -1.6% -2.0% -5.7% -5.0% 4.9%


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

May 14, 2019 - BAUER · Russia remains weak Bauer: UK, Netherlands, Hungary positive; good backlog in Eastern Europe Europe Market: positive development in most markets; Malaysia,