dam remediation at forggensee lake rosshaupten, germany€¦ · tunnel under suez canal –egypt...

Group Presentation FY/Q4 2018April 15, 2019

Dam remediation at Forggensee Lake – Rosshaupten, Germany

© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 2

At EUR 1,686.1 billion, total Group revenues were down by 4.9%. Insufficient capacity utilization as well as project

postponements and cancellations, which were mainly caused by the weak market in the Middle East, resulted in the

overall decline in revenues.

With EBIT of EUR 100.1 million and earnings after tax of EUR 24.1 million, we have reached our earnings targets from

the last annual report. EBIT was even slightly better than expected.

At EUR 1,013.6 million, the order backlog stood at a very pleasing level at the end of 2018 and was up 3.7% from the

previous year's figure.

The net debt of our company fell significantly by 5.4% to EUR 561.9 and has returned to a lower level once again. A

decline of 12.3% was already achieved last year.

Forecast 2019: 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.

HighlightsFY 2018 – BAUER Group

Total Group revenues

EUR 1,686 million(-4.9%)

Sales revenues

EUR 1,589 million(-4.7%)

EBIT

EUR 100.1 million(+11.7%)

Earnings after tax

EUR 24.1 million(2017: EUR 3.7 million)

Total assets

EUR 1,632 million(+0.9%)

Order backlog

EUR 1,014 million(+3.7%)

Net debt

EUR 561.9 million(-5.4%)

Equity ratio

26.5%(2017: 25.9%)


Key FiguresFY 2018

FY 2017in EUR million

FY 2018in EUR million

∆ FY in %

Total Group revenues, of which

- Germany

- International

- Construction

- Equipment

- Resources

- Other/Consolidation

1,772.0

477.8

1,294.2

835.0

754.5

248.2

-65.7

1,686.1

467.1

1,219.0

767.6

723.1

261.5

-66.1

-4.9%

-2.3%

-5.8%

-8.1%

-4.2%

+5.3%

n/a

Sales revenues 1,667.9 1,589.1 -4.7%

Order intake 1,741.7 1,721.9 -1.1%

Order backlog 977.8 1,013.6 +3.7%

EBITDA 182.6 198.6 +8.8%

EBIT 89.6 100.1 +11.7%

EBIT margin in % (of sales revenues) 5.4 6.3 n/a

Earnings after tax 3.7 24.1 n/a

Earnings per share (in EUR) 0.16 1.32 n/a

Total assets 1,617.7 1,632.3 +0.9%

Equity 418.7 431.8 +3.1%

Equity ratio in % 25.9 26.5 n/a

Employees (average over the year) 10,913 11,643 +6.7%


FinancialsFinal figures 2018 vs. forecast and long-term targets

2018 forecast

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

Revenue growth -4.9% 3 - 8 %

EBIT ~ 90 EUR million 100.1 EUR million

EBIT margin 6.3% 7 - 9 %

Earnings after tax significantly higher than 2017 24.1 EUR million

Equity ratio 26.5% > 30 %

2018 final Long-term goal

Tunnel under Suez Canal – Egypt Soil replacement – Hersbruck, GermanyIn-house exhibition


Table of Content

BAUER Group – Strategy, Chances & Markets

Appendix

Financials FY/Q4 2018 & 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.

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%


Equipment

672

Construction

Overseas

566

Construction

Domestic

189

Resources

259

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 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018

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

0

400

800

1,200

1,600

2,000

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

980

1,208

1,527

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

1,555

1,7721,686

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

8

CAGR

4.6%

BAUER GroupLongstanding healthy business development

CAGR

5.5%


Worldwide networkMore than 110 subsidiaries in about 70 countries

Schrobenhausen

Kuala LumpurTianjin

Permanent Offices:

Construction

Equipment sales

Resources

Equipment 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: Switzerland, Netherlands,

UK positive; good backlog in

Eastern Europe

Europe

Market: positive development in

most 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: still in reorganization phase

in USA, just single projects;

Canada a bit weak

USA / CanadaMarket: infrastructure

budgets raised

Bauer: high order backlog

Germany

10

BAUER GroupConstruction market environment vs. order backlog

+

-

o

o

+

++

o

o

-

-

+

+

o

o

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


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 %)

Regional breakdownTotal Group revenues FY 2018 – Group

Total 1,686in EUR million

Africa 63 (3 %)

Americas 228 (13 %)

Asia-Pacific,


426 (24 %)

Middle East


Germany 478 (27 %)

EU excl. Germany

258 (15 %)

Europe (other)

118 (7 %)

Full year 2017

Total 1,772

in EUR million


Africa 48 (6 %)

Americas 44 (6 %)

Asia-Pacific,

Far East

& Australia

203 (27 %)

Middle East


Germany 189 (25 %)

EU excl. Germany

109 (15 %)

Europe

(other)

15 (2 %)

Africa 15 (2 %)

Americas 120 (18 %)

Asia-Pacific,


224 (33 %)

Middle East


Germany 100 (15 %)

EU excl.

Germany

144 (22 %)

Europe

(other)

42 (6 %)

Africa 10 (4 %)

Americas 7 (3 %)

Asia-Pacific,

Far East & Australia 1 (0 %)

Middle East & Central Asia

38 (15 %)

Germany 178 (68 %)

EU excl.

Germany

23 (9 %)

Europe (other)

2 (1 %)

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



494 379 484 429

405381

454386

550

396

409422

362

411

394485

2015 2016 2017 2018

996 1,008 978 1,014

0

250

500

750

1,000

1,250

2015 2016 2017 2018

1,6561,555

1,7721,686

1,379 1,397

1,6681,589

0

400

800

1,200

1,600

2,000

2015 2016 2017 2018

90.7

70.3

89.6100.1

29.0

14.43.7

24.1

0

25

50

75

100

125

2015 2016 2017 2018

14

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

1,811

1,567

+3.7%

-4.7%1,741

-4.9%

-4.7%

∆ FY

+11.7%

n/a

∆ FY 1,722


-1.8

26.3

19.6

39.1

177231

835768 493

547

FinancialsConstruction segment – Highlights FY 2018

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 767.6 million, down 8.1% (previous year:

EUR 835.0 million). FY 2017 figures were at an unusually high level. This decline is

due to a weaker utilization as well as project postponements and cancellations,

which were mainly caused by the weak market in the Middle East.

EBIT increased from EUR 19.6 million to EUR 39.1 million. Earnings after tax

amounted to EUR 9.6 million (previous year: EUR -15.2 million).

Q4 2018 was exceptionally good, while 2017 was burdened by two negative effects:

reassessment of slightly more than EUR 20 million on receivables (Hong Kong

arbitration) as well as negative currency effects.

Order backlog increased by 11.1% to EUR 547.3 million (previous year: EUR 492.7

million) due to higher order intake, which totaled EUR 822.2 million and was 10.8%

above the previous year's figure of EUR 742.4 million. The order book lasts for 8.6

months.

15

-8.1%+11.1%

2017 2018 2017 2018 2017 2018

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

FY

Q4+98.9%


153

193 197 199178 177

187 183193

176195

178156

171185

201211 221 227

177

151

176

210231

0

50

100

150

200

250

Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18Q4/18

513 531498 499

436477 472 455

513551 584 591 585 575 578 585 578

526 516 493 511 507 503547

0

125

250

375

500

625


FinancialsConstruction segment – Revenues and order development



Construction

16

+30.6%

+11.1%


31.7

22.7

80.674.9

180 194

661 640

182 167

760 724

FinancialsEquipment segment – Highlights FY 2018

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 with EUR 723.1 million decreased by 4.2% against the

previous year (EUR 754.5 million). Sales revenues decreased by 3.2% from EUR

660.0 million to EUR 640.1 million.

In a very healthy market environment, we succeeded in keeping figures at very

good levels. The main drivers were the sales markets in Europe and Asia,

especially China.

EBIT dropped slightly from EUR 80.6 million to EUR 74.9 million and earnings after

tax from EUR 41.0 million to EUR 34.0 million. Additional depreciation of deep

drilling rigs amounting to about EUR 15 million influenced the earnings figures for

2018.

Order intake fell by 4.8% from EUR 759.9 million to EUR 723.7 million. Order

backlog with EUR 149.9 million is at the previous year's level (EUR 149.3 million).

17

-3.2% -4.8%

Full year 2018:


EBIT margin: 11.7%

Key targets:

~ 40% of total Group revenues

EBIT margin: 10 - 12%


Sales revenues, order intake, EBIT 2017 2018 2017 2018 2017 2018

FY

Q4

-7.1%


104125 128

205

103115

143

171

100

137 129

181

108 115 123

197

127

186169

180

129

174

144

194

0

50

100

150

200

250


165185

154

127

165 163187

162177

155166

152 161 159 160171

212 218

148

182

227

170 160 167

0

50

100

150

200

250


FinancialsEquipment segment – Revenues and order development

Order intakein EUR million

Sales revenuesin EUR million

Equipment

18

+7.6%

-8.6%


186163 159

133 130

162

0

50

100

150

200

2012 2013 2014 2015 2016 2017

521562 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.

19

-13%

+24%


-5.5

-3.2

-10.0-11.0

5572

248261 336

316

FinancialsResources segment – Highlights FY 2018

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 with EUR 261.5 million increased by 5.3% against the

previous year (EUR 248.2 million).

EBIT decreased slightly from EUR -10.0 million to EUR -11.0 million and earnings

after tax were up from EUR -22.4 million in the previous year to EUR -16.0 million.

The overcapacities and underutilization of the subsidiary in Jordan continued to

result in heavy financial burdens.

Order backlog was 5.7% down to EUR 316.5 million. The order book lasts for 14.5

months. With EUR 242.2 million, order intake was significantly lower than in the

previous year (EUR 305.2 million). The decrease was mainly due to the very high

order intake of 2017, which included the major contract to expand the reed bed

treatment plant in Oman, a project worth about EUR 160 million.

We are confident that we will be able to make significant progress towards positive

earnings in the Resources segment in 2019.

20

+5.3%-5.7%

Full year 2018:


EBIT margin: n/a

Key targets:

~ 20% of total Group revenues (TGR)

EBIT margin: 6 - 8%


TGR, order backlog, EBIT 2017 2018 2017 2018 2017 2018

FY

Q4


39

55 53

4248

5360

92

5448

75

44

7167 66

5763 65 65

55 52

68 70 72

0

20

40

60

80

100


165183 177

150173 169 172

153173 174

274 276 287 294 290 279297

317 308336 330 321 324 316

0

75

150

225

300

375


FinancialsResources segment – Revenues and order development



Resources

21

+30.6%

-5.7%


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 Resources

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

22

Key facts

Why does the business model needs so much working capital?


1,504 1,5601,656

1,555

1,772 1,686

672 646 665 677594 562

0

360

720

1,080

1,440

1,800

2013 2014 2015 2016 2017 2018

605 604 629 608549 552

672646 665 677

594562

0

150

300

450

600

750

2013 2014 2015 2016 2017 2018

23

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


724777 781

672

773 776 778

646

779 752 749

665

743 762 736677

740 712 686

594639

678 679

562

0

160

320

480

640

800


686721 717

605

711 720 736

604

726 701 700

629672

709 684

608674 646 628

549 576624 629

552

0

160

320

480

640

800


24

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

Net debt (excl. pensions)in EUR million

Working capitalin EUR million +0.6%

-5.4%


FinancialsIncome statement FY 2018

in EUR '000 12M 2017 12M 2018 ∆ in %

Sales revenues (P&L) 1,667,861 1,589,091 -4.7%

Consolidated revenues (P&L) 1,688,137 1,616,936 -4.2%

Cost of materials -919,596 -821,496 -10.7%

Personel expenses -383,530 -392,384 2.3%

Other operation expenses -202,458 -204,440 1.0%

EBITDA 182,553 198,616 8.8%

Depreciation of fixed assets -78,342 -80,967 3.4%

Write-downs of inventories due to use -14,644 -17,590 20.1%

EBIT 89,567 100,059 11.7%

Financial income 37,649 38,204 1.5%

Financial expenses -90,784 -76,992 -15.2%

Share of profit/loss of associated companies (equity method) -1,124 4,594 n/a

Earnings before tax (EBT) 35,308 65,865 86.5%

Income tax expense -31,643 -41,778 32.0%

Earnings after tax 3,665 24,087 n/a

of which attributable to shareholders of BAUER AG 2,740 22,577 n/a

of which attributable to non-controlling interests 925 1,510 63.2%


Financials Balance sheet December 31, 2018

in EUR '000 Dec 31, 2017 Dec 31, 2018 ∆ in %

Assets 1,617,703 1,632,284 0.9%

Non-current assets 629,147 621,041 -1.3%

Intangible assets 21,021 18,077 -14.0%

Property, plant and equipment and investment property 407,429 411,571 1.0%

Investments accounted for using the equity method 121,315 113,019 -6.8%

Participations 11,733 8,350 -28.8%

Other non-current assets & deferred tax assets 67,649 70,024 3.5%

Current assets 988,556 1,011,243 2.3%

Inventories 430,606 426,353 -1.0%

Less advances received on inventories -13,883 -16,098 16.0%

416,723 410,255 -1.6%

Receivables and other assets 520,591 535,111 2.8%

Effective income tax refund claims 3,976 3,290 -17.3%

Cash and cash equivalents 47,266 62,587 32.4%

Equity and liabilities 1,617,703 1,632,284 0.9%

Equity 418,732 431,816 3.1%

Non-current debt 334,399 501,424 49.9%

Provisions for pensions 126,332 134,389 6.4%

Non-current liabilities & deferred tax liabilities 208,067 367,035 76.4%

Current debt 864,572 699,044 -19.1%

Financial liabilities 460,565 286,104 -37.9%

Other current liabilities 364,998 357,851 -2.0%

Effective income tax obligations 16,202 31,687 95.6%

Provisions 22,807 23,402 2.6%


FinancialsCash flow statement FY 2018

in EUR '000 12M 2017 12M 2018 ∆ in %

Cash flow from operational activity 183,330 147,444 -19.6%

Cash flow from investment activity -64,816 -57,600 -11.1%

Cash flow from financing activity -102,732 -75,088 -26.9%

Free Cash Flow 118,514 89,844 -24.2%

Changes in liquid funds affecting payments 15,782 14,756 -6.5%

Influence of exchange rate movements on cash -1,979 565 n/a

Total change in liquid funds 13,803 15,321 11.0%

Cash and cash equivalents at beginning of reporting period 33,463 47,266 41.2%

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


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 Aktiengesellschaft

BAUER-Straße 1

86529 Schrobenhausen

Germany

Tel.: +49 8252 97-1218

[email protected]

www.bauer.de

April 15, 2019 Annual Report 2018

Analyst & 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 Wolf

Head 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

33© 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

35

Total Group revenues (incl. JV)

Order backlog

EBIT


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 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


ConstructionYork, UK – Shaft sinking for Woodsmith Mine


EquipmentKey facts

Market leader in specialist

foundation equipment

Equipment

39

Sales revenues (excl. JV)

Order intake

EBIT


EBIT margin: 10 - 12%

(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


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

42

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)

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

2018

Employees (in 1,000)

Revenues 85.2

Building construction 47.2

Foundation engineering 38.0

Orders received *

in EUR billion

Housebuilding 17.8

Industrial building 33.3

Public sector

of which

public buildings 4.9

road building 13.7

underground 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 20182017/ 2018

2016 2017

3.8

5.3

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

47

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 1.9

2019 20201.3 1.5

0.81.4

2019 2020

3.5 3.72019 2020

1.3

3.2

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

Advanced

Economies

Emerging Markets &

Develop. Economies


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 (01/2018 – 04/2019)

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 18.30

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 ~300

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

0.00

0.30

0.60

0.90

1.20

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

50

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 – FY 2018

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 revenues2008 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

(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

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

Equipment 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

Resources 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

Sales revenues2008 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

(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

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

Equipment 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

Resources 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

EBIT2008 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

(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

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

Equipment 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

Resources 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

EBIT margin2008 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

(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%

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%

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%

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%


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.

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