group presentation fy/q4 2017 - bauer · shaft sinking for woodsmith mine – united kingdom group...
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Shaft sinking for Woodsmith Mine – United Kingdom
Group Presentation FY/Q4 2017 April 12, 2018
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 2
Key Figures FY 2017
FY 2016* in EUR million
FY 2017 in EUR million
∆ FY in %
Total Group revenues, of which
- Germany
- International
- Construction
- Equipment
- Resources
- Other/Consolidation
1,554.7
472.9
1,081.8
713.1
634.4
262.4
-55.2
1,772.0
477.8
1,294.2
835.0
754.5
248.2
-65.7
+14.0%
+1.1%
+19.6%
+17.1%
+18.9%
-5.4%
n/a
Sales revenues 1,396.9 1,667.9 +19.4%
Order intake 1,567.1 1,741.7 +11.1%
Order backlog 1,008.1 977.8 -3.0%
EBITDA 160.3 182.6 +13.9%
EBIT 70.3 89.6 +27.5%
EBIT margin in % (of sales revenues) 5.0 5.4 n/a
Earnings after tax 14.4 3.7 -74.6 %
Earnings per share (in EUR) 0.66 0.16 -75.8 %
Equity ratio in % 25.8 25.9 n/a
Total assets 1,681.8 1,617.7 -3.8 %
Number of employees (average over the year) 10,771 10,913 +1.3%
* Previous year figures adjusted; for more information, see notes on page 93 ff. of the Annual Report 2017
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 3
Total Group revenues increased by 14.0% to EUR 1,772.0 million
(2016: EUR 1,554.7 million).
Sales revenues increased by 19.4% to EUR 1,667.9 million
(2016: EUR 1,396.6 million).
Revenues and earnings figures were influenced by an unexpected
outcome of an long-standing arbitration proceedings, which resulted in
an additional loss at the local construction subsidiary in Hong Kong of
just over EUR 20 million.
EBIT rose by 27.5% from EUR 70.3 million to EUR 89.6 million.
Earnings after tax of EUR 3.7 million (2016: EUR 14.4 million) include
net currency effects of EUR -22.5 million (2016: EUR -1.9 million).
Order backlog of the Group decreased by 3.0% to EUR 977.8 million
(2016: EUR 1,008.1 million). Order intake increased significantly by 11.1%
to EUR 1,741.7 million (2016: EUR 1,567.1 million).
Total assets declined by 3.8% to EUR 1,617.7 million (2016: EUR 1,681.8
million) against the significant increase in revenues. Net debt fell very
sharply by 12.3% to EUR 593.7 million (2016: EUR 676.9 million).
Forecast 2018: total Group revenues of around EUR 1.8 billion, EBIT of
about EUR 90 million and significantly higher earnings after tax.
Highlights FY 2017 – BAUER Group
BAUER BG 45 drilling rig – In-house exhibition
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 4
BAUER Group Final figures vs. forecast and long-term targets
2017 forecast*
Total Group Revenues ~ 1,800 EUR million 1,772 EUR million
Revenue growth +14.0% 3 - 8%
EBIT ~ 65.0 EUR million 89.6 EUR million
EBIT margin 5.4% 7 - 9%
Earnings after tax new: just in the positive range 3.7 EUR million
Equity ratio 25.9% > 30%
2017 final Long-term goal
* Adjusted on January 8, 2018
Tunnel under the Suez Canal – Egypt Soil replacement – Hersbruck, Germany In-house exhibition 2017
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 5
Table of Content
BAUER Group – Strategy, Chances & Markets
Appendix
Financials FY/Q4 2017 & Guidance
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 6
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 excavation pit – Germany
BAUER Group Mission & Strategy
EUR 1.8 billion total Group revenues
EUR 89.6 million EBIT
5.4% EBIT margin
25.9% equity ratio
10,913
employees FY 2017
Key targets
Revenue growth: 3 - 8% per year
EBIT margin: 7 - 9%
Equity ratio: > 30%
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 7
Note: from 2003 based on IFRS figures
BAUER Group Longstanding healthy business development
Total Group revenues in EUR million (segment after deducting Other/Consolidation)
1,600
Equipment
705
Construction
Overseas
638
Total 1,772
Construction
Domestic
181
1,000
1,400
800
600
200
0
1980 1983 1985 1987 1997 1999 2001 2003 2005 2007
Resources
248
1991 1989 1993 1995 2009 2011 2013 2015
1,200
400
1,800
2017
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017
835
1,033
1,291
1,097 1,132 1,220
1,344 1,402 1,376 1,379 1,397
1,668
0
300
600
900
1,200
1,500
1,800
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
980
1,208
1,527
1,278 1,304 1,372 1,436 1,504 1,560 1,656
1,555
1,772
0
300
600
900
1,200
1,500
1,800
2,100
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Sales revenues in EUR million
Total Group revenues in EUR million
8
CAGR
5.5%
BAUER Group Longstanding healthy business development
CAGR
6.5%
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 9
Worldwide network More than 110 subsidiaries in about 70 countries
Schrobenhausen
Kuala Lumpur Tianjin
Permanent Offices:
Construction
Equipment sales
Resources
Equipment production
Conroe
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 10
BAUER Group Chances
Construction Equipment Resources
Growth potential in new markets
and with specialized machines.
Strong position as a lot of efforts
were made regarding quality,
efficiency and noise reduction
Manufacture of customized deep
drilling solutions in the joint
venture with Schlumberger.
Powerful duty-cycle crane series,
which entered new markets.
Innovative offshore equipment for
the foundation of wind farms and
tidal turbines.
Growing construction markets
worldwide.
Huge pent-up demand in
developed countries and in
emerging markets.
Specialist foundation grows
somewhat stronger than
construction markets.
Construction segment with
considerable number of major
projects currently under
construction and tendered for
worldwide.
Full-service provider for products
and solutions related to water.
Ground-breaking projects in the
field of cleaning drinking and
process water, e.g. a biological
water treatment plant in Oman.
Promising opportunities due to
its focus on growth markets
water, environment and natural
resources.
High expertise in exploration and
mining services for natural
resources.
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 11
World construction markets Bauer market potential
USA / Canada:
big need for infrastructure
investments; reluctance
in USA
+
Other Americas:
several chances in
Central America
Africa:
little construction
activities; some special
projects; demand for
water and resources is
slightly better
o
Far East:
positive development
most markets, especially
China, Malaysia, Indonesia
and Thailand;
+
Western Europe:
weak markets with
some positive trends
o
Germany:
very good;
infrastructure
budget raised
++ Eastern Europe:
slow positive
development
Russia:
still remains weak
Middle East:
slowing down as a result
of oil price; most markets
remain stable; Qatar uncertain
Central Asia:
good market potentials;
small upswing in India
+
-- weak - slightly weak o stable + growing ++ strong growth
o -
o
Last update: April 2018
o
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017
2017 2018
2017 2018 2017 2018 2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
2017 2018
Global economic situation IMF projection of the real annual GDP growth in %
Source: International Monetary Fund, World Economic Outlook Database, October 2017 * CIS = Commonwealth of Independent States (incl. Georgia; excl. Russia)
United States
Brazil
CIS*
Germany
Middle East &
North Africa
Sub-Saharan Africa
World Advanced
Economies
Emerging Markets &
Develop. Economies
Russia
Australia
Developing Asia
Latin America
Europe
China
2.2 2.0 3.6 3.7
4.6 4.9
1.2 1.9
2.1 2.1
6.5 6.5
1.8 1.6
6.8 6.5
2.2 2.9
2.2 2.3
0.7 1.5
2.1 1.9
2.0 1.8
2.6 3.4
2.6 3.5
12
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 13
Africa 63 (3 %)
Americas 228 (13 %)
Asia-Pacific,
Far East & Australia
426 (24 %)
Middle East
& Central Asia 201 (11 %)
Germany 478 (27 %)
EU excl. Germany 258 (15 %)
Europe (other)
118 (7 %)
Regional breakdown Total Group revenues FY 2017 – Group
Total 1,772 in EUR million
Africa 73 (5 %)
Americas 233 (15 %)
Asia-Pacific,
Far East & Australia
278 (18 %)
Middle East
& Central Asia 193 (12 %)
Germany 473 (30 %)
EU excl. Germany
213 (14 %)
Europe (other)
92 (6 %)
Total 1,555
in EUR million
Full year 2016
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 14
Africa 37 (5 %)
Americas 98 (12 %)
Asia-Pacific,
Far East
& Australia
210 (26 %)
Middle East
& Central Asia 135 (16 %)
Germany 181 (22 %)
EU excl. Germany
97 (12 %)
Europe
(other)
61 (7 %)
Africa 17 (2 %)
Americas 121 (17 %)
Asia-Pacific,
Far East & Australia
216 (31 %)
Middle East
& Central Asia 35 (5 %)
Germany 121 (17 %)
EU excl.
Germany
142 (20 %)
Europe
(other)
53 (8 %)
Africa 9 (4 %)
Americas 9 (4 %)
Asia-Pacific,
Far East & Australia 0 (0 %)
Middle East & Central Asia
31 (13 %)
Germany 176 (71 %)
EU excl.
Germany
19 (8 %)
Europe (other)
4 (2 %)
Regional breakdown Total Group revenues FY 2017 – Segments
Total 819 in EUR million
Total 705 Total 248
Construction segment Equipment segment Resources segment
Figures after deducting Other/Consolidation
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 15
Table of Content
BAUER Group – Strategy, Chances & Markets
Appendix
Financials FY/Q4 2017 & Guidance
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017
334 379 484
424 405
381
421 396
409
342
362 394
2014 2015 2016 2017
76.4
90.7
70.3
89.6
15.7
29.0
14.4
3.7
0
20
40
60
80
100
2014 2015 2016 2017
763
996 1,008 978
0
300
600
900
1,200
2014 2015 2016 2017
1,560 1,656 1,555
1,772
1,376 1,379 1,397
1,668
0
400
800
1,200
1,600
2,000
2014 2015 2016 2017
16
Q1
Q2
Q3
Q4
Financials Revenues, earnings & orders – Group
Revenues
Earnings
Order backlog
Order intake
in EUR million
in EUR million in EUR million
in EUR million Total Group revenues Sales revenues
EBIT Earnings after tax
1,521
1,811
1,567
+14.0%
+19.4%
∆ FY
-3.0%
+11.1% +27.5%
∆ FY
494
550
1,741
411
454
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017
12.0
-1.8
29.7
19.6
585
493
201 177
713
835
Financials Construction segment – Highlights FY 2017
Construction
Global provider for specialist
foundation engineering services
Focus on complex, international
projects
~ 50/50 infrastructure / industrial Total Group revenues in EUR million
Order backlog in EUR million
EBIT in EUR million
Total Group revenues increased significantly by 17.1% to EUR 835.0 million by
processing the large order backlog and utilizing the very good market situation in
some countries.
The unexpected outcome of the Hong Kong arbitration, necessitated a
reassessment of slightly more than EUR 20 million on the receivables. This
correspondingly reduced revenues and earnings of the full year and Q4 2017.
EBIT with EUR 19.6 million and earnings after tax with EUR -15.2 million (previous
year: EUR 9.5 million) were below expectations and were influenced by negative
currency effects, high tax expenses and the outcome of the Hong Kong arbitration.
Order backlog decreased by 15.8% to EUR 492.7 million. The segment has further
on a good order book of 7.1 months. Order intake increased by 5.0% from EUR
707.4 million to EUR 742.4 million.
17
+17.1% -15.8%
2016 2017
FY
Q4
2016 2017 2016 2017
Full year 2017:
46% of total Group revenues
EBIT margin: 2.5%
Key targets:
~ 40% of total Group revenues (TGR)
EBIT margin: 4 - 6%
Key figures to be considered:
TGR, order backlog, EBIT
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017
513 531 498 499
436 477 472 455
513 551 584 591 585 575 578 585 578
526 516 493
0
125
250
375
500
625
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17
153
193 197 199 178 177 187 183
193 176
195 178
156 171
185 201
211 221 227
177
0
50
100
150
200
250
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17
Financials Construction segment – Revenues and order development
Order backlog in EUR million
Total Group revenues in EUR million
Construction
18
-12.0%
-15.8%
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017
15.8
31.7 38.4
80.6
171 182
650
760
197 180
543
661
Financials Equipment segment – Highlights FY 2017
Market leader in specialist
foundation equipment
New products for mining, deep
drilling and offshore drilling
About 80% of sales abroad Sales revenues in EUR million
Order intake in EUR million
EBIT in EUR million
Equipment
Total Group revenues increased significantly by 18.9% from EUR 634.4 million to
EUR 754.5 million and sales revenues by 21.8% to EUR 660.9 million. In an overall
growing market environment, we were able to significantly increase our sales. The
main drivers were the sales markets in Europe and Asia, especially China.
EBIT increased strongly from EUR 38.4 million to EUR 80.6 million.
With an EBIT margin of 12.2% we met our mid-term key target for the segment.
Earnings after tax increased strongly from EUR 10.9 million to EUR 41.0 million.
Order intake was better than expected and increased significantly by 16.8% to EUR
759.9 million. Order backlog was EUR 149.3 million. Due to significantly increased
production volumes and fast delivery, the order backlog did not increase compared
to previous year's level of EUR 144.0 million.
19
+21.8% +16.8%
2016 2017 2016 2017 2016 2017
FY
Q4 Full year 2017:
40% of total Group revenues
EBIT margin: 12.2%
Key targets:
~ 40% of total Group revenues
EBIT margin: 10 - 12%
Key figures to be considered:
Sales revenues, order intake, EBIT
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017
165 185
154
127
165 163 187
162 177
155 166
152 161 159 160 171
212 218
148
182
0
50
100
150
200
250
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17
104 125 128
205
103 115
143
171
100
137 129
181
108 115 123
197
127
186 169
180
0
50
100
150
200
250
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17
Financials Equipment segment – Revenues and order development
Order intake in EUR million
Sales revenues in EUR million
Equipment
20
-9.2%
+6.7%
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017
Financials Equipment segment – Market development vs. Bauer
Sales revenues of the Bauer Equipment segment in EUR million
Revenues of 50 largest construction equipment manufacturers in USD billion
Equipment
Source: internationalconstruction (04/2017)
Revenues of the world’s 50 largest construction
equipment manufacturer saw a tremendous decline
between 2012 and 2016 of 31%.
In China the decline was even worse with a decline
of 50% and therefore the main reason for the
world’s market development.
A second reason was the fall in global commodity
prices, which hit sales of mining equipment.
The very competitive situation because of the
surplus production capacities in China is easing.
Bauer passed through this situation with a small
increase in revenues, which shows the success of
the efforts made regarding, quality, efficiency and
noise reduction of Bauer equipment.
Nonetheless, the market development led to a
weaker margin situation in Equipment.
21
187 162 157
135 130
0
50
100
150
200
2012 2013 2014 2015 2016
521 562 545 548 543
0
150
300
450
600
2012 2013 2014 2015 2016
-31%
+4%
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017
-7.6
-5.5
-3.7
-10.0
279
336
57 55
262 248
Financials Resources segment – Highlights FY 2017
Products & services related to water,
environment and natural resources.
Competence areas: water treatment,
environmental remediation, waste
management, drilling technologies
and constructed wetlands
Total Group revenues in EUR million
Order backlog in EUR million
EBIT in EUR million
Resources
Total Group revenues decreased by 5.4% to EUR 248.2 million.
EBIT decreased from EUR -3.7 million to EUR -10.0 million and earnings after tax
were down from EUR -8.5 million to EUR -22.4 million.
Underutilization in well drilling continued to have a significant negative impact.
Additionally, our subsidiary, which manufactures systems for brewing and
beverage technology, was impacted by an unprofitable project. Although many
restructurings are already taking effect, some areas and companies are not
profitable yet. Therefore, further measures have been implemented.
Order backlog was 20.4% up to EUR 335.8 million, mainly due to the large project
for the expansion of the reed bed treatment plant in Oman. Order intake grew 15.3%
from EUR 264.7 million to EUR 305.2 million. The segment has a sustainable order
book of 16.2 months.
22
-5.4% +20.4%
2016 2017 2016 2017 2016 2017
FY
Q4 Full year 2017:
14% of total Group revenues
EBIT margin: n/a
Key targets:
~ 20% of total Group revenues (TGR)
EBIT margin: 6 - 8%
Key figures to be considered:
TGR, order backlog, EBIT
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017
165 183 177
150 173 169 172
153 173 174
274 276 287 294 290 279 297
317 308 336
0
75
150
225
300
375
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17
39
55 53
42 48
53 60
92
54 48
75
44
71 67 66
57 63 65 65
55
0
20
40
60
80
100
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17
Financials Resources segment – Revenues and order development
Order backlog in EUR million
Total Group revenues in EUR million
Resources
23
-3.3%
+20.4%
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017
1,436 1,504 1,560 1,656 1,555
1,772
611 672 646 665 677 594
0
360
720
1,080
1,440
1,800
2012 2013 2014 2015 2016 2017
580 605 604 629 608 549
611 672 646 665 677
594
0
150
300
450
600
750
2012 2013 2014 2015 2016 2017
24
Financials Working capital & net debt – requirements and development
Total Group revenues / net debt in EUR million
Net debt Working capital
Net debt Total Group revenues
Bauer’s business model requires considerably more
working capital than other construction companies.
Current development:
- Net debt fell very sharply by 12.3% to EUR 593.7
million. Inventories, finished goods and receivables
were significantly reduced thanks to additional sales
growth as well as our own measures.
Construction segment:
- Construction contracts with short duration need
approx. 2 - 3 months pre-financing
(no advance payments, no front-loading of prices
possible, comparably long time needed for final
account settlement).
- On some jobs collection of money takes long time
due to disputes with the customer. Bad payment is
frequently used by customers to achieve reductions
in final payments. This can cause law cases.
Comparison with main contractor: they can
finance their company by a positive cash flow from
jobs.
+23.4%
-2.8%
∆ 2012/2017
Group
Working capital / net debt in EUR million
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 25
Building construction
positive cash contribution
Specialist foundation engineering
pre-financing need
Financials Working capital needs & cash flow
EUR
12 24 months
Positive cash
contribution
Negative cash
contribution
Co
ntr
ac
t va
lue
EUR
Negative cash
contribution
12 24 months
Co
ntr
ac
t va
lue
Equipment segment:
- Due to very special parts being installed, parts need
to be pre-ordered well in advance
approx. 3 months pre-financing of equipment
during production.
- Spare parts store is needed for large customer base.
- A relatively large rental fleet is needed for different
contract types (e.g. rental purchase).
Resources segment:
- A mixture of the Construction and Equipment
segments.
Group
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017
724 777 781 672
773 776 778
646
779 752 749
665 743 762 736
677 740 712 686
594
0
160
320
480
640
800
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17
686 721 717
605
711 720 736
604
726 701 700 629
672 709 684
608 674 646 628
549
0
160
320
480
640
800
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17
26
Financials Working capital & net debt are lower year-end than during the year
Net debt (excl. pensions) in EUR million
Working capital in EUR million -9.8%
-12.3%
Group
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017
Financials Working capital & net debt – Financing of future revenues
Inventory
• Distribution on business segments
• Construction: raw materials for construction sites (concrete, steel, etc.)
• Equipment: 1) Finished machines with a long-term value needed to deliver equipment to customers in time
2) Spare parts and drilling tools in a number of service centers all over the world for high customer service
3) Rental fleet Quite some machines for rental and rental-purchase contracts are strategically important
• Resources: finished goods (water business) and raw materials for construction sites (environmental business)
Receivables
• Distribution on business segments
• Construction: 1) Receivables on construction projects (PoC) – including litigations
2) No large valuation adjustments on receivables in the last years (less than 4% of receivables in average p.a.)
• Equipment: receivables on outstanding customer payments
• Resources: outstanding customer payments (water business) and receivables on projects (environmental & drilling business)
Working capital has a solid and long-term value
Net debt therefore is needed to finance the future revenues of the company
75-80% 15-20% ~5%
Construction Equipment Resources
is needed
to finance
Working capital mainly consists of inventory
and receivables
20-25% 55-60% 15-20%
Construction Equipment Resources
Net debt non-current & current debt –
mainly liabilities to banks
Group
27
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 28
Financials Income statement FY 2017
in EUR '000 12M 2016 12M 2017 ∆ in %
Sales revenues (P&L) 1,396,881 1,667,861 19.4%
Consolidated revenues (P&L) 1,457,902 1,688,137 15.8%
Cost of materials -717,992 -919,596 28.1%
Personnel expenses -369,700 -383,530 3.7%
Other operation expenses -209,913 -202,458 -3.6%
EBITDA 160,297 182,553 13.9%
Depreciation of fixed assets -74,509 -78,342 5.1%
Write-downs of inventories due to use -15,532 -14,644 -5.7%
EBIT 70,256 89,567 27.5%
Financial income 36,214 37,649 4.0%
Financial expenses -79,406 -90,784 14.3%
Share of profit/loss of associated companies (equity method) -3,021 -1,124 n/a
Earnings before tax (EBT) 24,043 35,308 46.9%
Income tax expense -9,629 -31,643 n/a
Earnings after tax 14,414 3,665 -74.6%
of which attributable to shareholders of BAUER AG 11,302 2,740 -75.8%
of which attributable to non-controlling interests 3,112 925 -70.3%
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 29
Financials Balance sheet December 31, 2017
in EUR '000 Dec. 31, 2016 Dec. 31, 2017 ∆ in %
Assets 1,681,787 1,617,703 -3.8%
A. Non-current assets 642,174 629,147 -2.0%
I. Intangible assets 25,640 21,021 -18.0%
II. Property, plant and equipment and investment property 407,977 407,429 -0.1%
III. Investments accounted for using the equity method 129,252 121,315 -6.1%
IV. Participations 9,730 11,733 20.6%
V. Other non-current assets & deferred tax assets 69,575 67,649 -2.8%
B. Current assets 1,039,613 988,556 -4.9%
I. Inventories 447,326 430,606 -3.7%
Payments received -13,893 -13,883 -0.1%
II. Receivables and other assets 548,338 520,591 -5.1%
III. Effective income tax refund claims 4,771 3,976 -16.7%
IV. Cash and cash equivalents 33,463 47,266 41.2%
V. Assets classified as held for sale 19,608 0 n/a
Equity and liabilities 1,681,787 1,617,703 -3.8%
A. Equity 434,131 418,732 -3.5%
B. Non-current debt 356,797 334,399 -6.3%
I. Provisions for pensions 127,081 126,332 -0.6%
II. Non-current liabilities & deferred tax liabilities 229,716 208,067 -9.4%
C. Current debt 890,859 864,572 -3.0%
I. Financial liabilities 510,497 460,565 -9.8%
II. Other current liabilities 351,269 364,998 3.9%
III. Effective income tax obligations 11,213 16,202 44.5%
IV. Provisions 17,880 22,807 27.6%
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 30
Financials Cash flow statement FY 2017
in EUR '000 12M 2016 12M 2017 ∆ in %
Cash flow from operational activity 124.879 183.330 46,8%
Cash flow from investment activity -66.675 -64.816 -2,8%
Cash flow from financing activity -64.172 -102.732 60,1%
Free Cash Flow 58.204 118.514 n/a
Changes in liquid funds affecting payments -5.968 15.782 n/a
Influence of exchange rate movements on cash -7.975 -1.979 n/a
Total change in liquid funds -13.943 13.803 n/a
Cash and cash equivalents at beginning of reporting period 47.406 33.463 -29,4%
Cash and cash equivalents at end of reporting period 33.463 47.266 41,2%
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 31
Financials Forecast 2018
2017 final
Total Group Revenues 1,772 EUR million ~ 1,800 EUR million
Revenue growth +14.0% 3 - 8 %
EBIT 89.6 EUR million ~ 90 EUR million
EBIT margin 5.4% 7 - 9 %
Earnings after tax 3.7 EUR million significantly higher than 2017
Equity ratio 25.9% > 30 %
2018 forecast Long-term goal
Tunnel under Suez Canal – Egypt Soil replacement – Hersbruck, Germany In-house exhibition 2017
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 32
Investor Relations
BAUER Aktiengesellschaft
BAUER-Straße 1
86529 Schrobenhausen
Germany
Tel.: +49 8252 97-1218
Fax: +49 8252 97-2900
www.bauer.de
Annual Report 2017 April 12, 2018
Annual Press Conference April 12, 2018
Analyst Conference April 12, 2018
Annual General Meeting June 28, 2018
Quarterly Statement Q1 2018 May 14, 2018
Half-Year Interim Report to June 30, 2018 August 10, 2018
Quarterly Statement 9M/Q3 2018 November 13, 2018
Listing CDAX
Classic All Share
Prime All Share
ISIN DE0005168108
Reuters B5AG.DE
Bloomberg B5A GR
www.youtube.com/Bauergruppe www.facebook.com/BauerAGgroup
Investor Relations Financial calendar & contact
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 33
Table of Content
BAUER Group – Strategy, Chances & Markets
Appendix
Financials FY/Q4 2017 & Guidance
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 34
1790 · 1900 · 1902 · 1928 · 1948 · 1956 · 1958 · 1967 · 1969 · 1972 · 1975 · 1976 · 1984 · 1990 · 1992 · 1994 · 1998 · 2001 · 2017
BAUER Group The history – Two centuries of experience
End of 1970’s:
Start of
internationalisation
Early 1990’s:
Build up of
specialist construction/
environmental business
FY 2017:
Total Group
revenues
EUR 1.772
billion,
10,913
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 2000-2017
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 35
BAUER Group The three segments
35 © 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 AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 36
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
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 37
What is specialist foundation used for? Applications for projects
Foundations Cut-off walls Excavation pits
Buildings Infrastructure Water – Energy Industry
Ground improvement
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 38
BAUER Group Challenges of the world provide chances for the company
Urbanization Infrastructure Water
Environment Energy / Oil & Gas Values
The megatrend urbanization leads to
more complex inner-city solutions
High demand for new infrastructure and
for restoration of existing structures
Changing social values influence the
working and corporate environment
The pollution and contamination of soil
require innovative purification solutions
Energy and resource scarcity provide
chances for underwater and deep drilling
The shortage of clean drinking water
is one of the worlds biggest problems
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 39
Construction St. Petersburg, Russia – Foundation works for Lakhta Center
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 40
Construction Bad Duerkheim, Germany – Diaphragm wall for disposal site
© euroluftbild.de
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 41
Equipment Product range: Drilling rigs (BG series) – PremiumLine
BG 55 BG 39 PremiumLine
The Premium Line stands, for the one part,
for very modern kelly drilling rigs and on the
other hand for multifunction equipment for a
variety of foundation construction systems.
Specific highlights of the BG PremiumLine
are:
High safety standards
Environmental sustainability, economic
efficiency and performance
Easy to transport and short rigging time
High quality standard
Long lifetime and excellent resale value
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 42
Equipment Product range: Drilling rigs (BG series) – ValueLine
BG 26 ValueLine
If kelly drilling is your task, then the BG
ValueLine is the solution. The machines of
the ValueLine are specifically adapted to no
other purpose than kelly drilling – and that
perfectly.
Specific highlights of the BG ValueLine are:
Long mast for increased drilling depth
Enlarged drill axis distance for larger
drilling diameter
High winch traction forces
Increased torque
Fuel-efficient diesel engine
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 43
Equipment Product range: Duty-cycle cranes (MC series)
MC 128 MC 96 MC 76
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 44
Equipment Product 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.
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 45
Resources Pool of competences from a single hand
Industrial Waste Water
Process & Produced Water
NORM
Constructed Wetlands
Modelling & Well Design
Construction Material for Wells
and Geothermal
Water Distribution Management
Irrigation Systems
Remediation
Landfill Restoration
Decommissioning
Demolition
Hazardous Waste Management
Soil Treatment and Waste
Management
Exploration Drilling
Deep Geothermal Drilling
Well Drilling
Blast Hole Drilling
Environment Water Natural Resources
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 46
Resources Water – Process Water & Water Distribution Management
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 47
Resources Environment – Remediation of Kesslergrube landfill, Germany
© Source: Press pictures Roche
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 48
Market environment – Germany German construction market
Source: Federal Statistical Office, Statistical Office Bavaria
Germany
2017
Employees in 1000
Revenues in EUR billion 76.9
Building construction 43.1
Foundation engineering 33.8
Orders received
in EUR billion
Housebuilding 16.0
Industrial building 29.4
Public sector
of which
public buildings 4.8
road building 12.6
underground structures 9.4
only companies > 20 employees
2.7
7.5
7.8
5.3
7.8
18.8
16.8
5.9
8.5
9.8
17.0
11.9
9.2
December 20172016/ 2017/
2015 2016
6.9
26.8
72.3
442.0
6.8
11.4
14.6 6.6
16.3
7.1
5.0
7.2
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 49
BAUER share Facts & Figures
Bauer family
Free float
51.81 %
Listed on Frankfurt stock exchange,
Prime Standard, since July 4, 2006
Share capital EUR 73,001,420.45
Shares issued 17,131,000
Issue price EUR 16.75
Shareholder structure
Share performance (01/2017 – 03/2018)
48.19 %
in EUR 2014 2015 2016 2017 2018
Earnings per share 0.85 1.73 0.66 0.16 ---
Share price year end 13.35 17.40 11.40 30.00 ---
Share price highest 20.04 19.20 17.16 30.96 31.25
Share price lowest 11.75 13.85 9.45 11.72 19.00
Market Cap (in EUR million)
228.7 298.1 195.3 513.9 ~325
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 50
BAUER share Dividend policy
Dividend payment Dividend policy founded on a reasonable
balance between shareholders and
company
fair participation of shareholders
continuity over the years
safeguarding of the equity base
All shareholders shall participate in the
success of the business.
In turbulent times such as the financial crisis
our goal of strategic and safe growth of the
company led to higher profit retention for the
last years.
To secure an adequate equity ratio is an
important aim of the company’s management.
With this we intend to safeguard the long-term
success of the Group.
in EUR per share
0.50
1.00 1.00
0.60 0.60
0.50
0.30
0.15 0.15 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
0.00
* Proposed; subject to the consent of the Annual General Meeting to be held on June 28, 2018
*
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 51
Key Figures Time Line FY 2008 – FY 2017
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 Q1 15 Q2 15 Q3 15 Q4 15 2015 Q1 16 Q2 16 Q3 16 Q4 16 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017
(in EUR million)
BAUER Group 1,527.2 1,275.8 1,304.0 1,371.8 1,435.8 1,504.2 1,560.2 409.1 371.3 414.5 461.5 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
Construction 700.9 570.0 615.4 606.6 655.2 741.7 725.6 193.5 176.4 194.5 178.5 742.9 156.3 171.3 185.0 200.6 713.1 210.9 220.6 226.9 176.6 835.0
Equipment 780.1 608.5 581.7 636.5 589.1 628.6 639.2 173.8 159.6 163.2 256.5 753.1 159.6 146.7 150.8 177.3 634.4 186.8 185.2 196.6 185.9 754.5
Resources 135.1 174.3 177.7 211.5 262.8 188.9 252.8 54.3 47.8 75.1 44.4 221.6 71.4 67.4 66.4 57.4 262.4 63.0 64.7 65.1 55.4 248.2
Sales revenues 2008 2009 2010 2011 2012 2013 2014 Q1 15 Q2 15 Q3 15 Q4 15 2015 Q1 16 Q2 16 Q3 16 Q4 16 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017
(in EUR million)
BAUER Group 1,290.8 1,096.5 1,131.7 1,219.6 1,344.4 1,402.2 1,375.7 299.6 342.4 376.8 360.2 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
Construction 584.3 487.9 505.8 506.2 579.1 657.5 646.6 156.0 163.9 179.4 151.5 650.8 143.6 154.9 162.7 153.3 614.5 196.6 206.4 214.5 166.3 783.8
Equipment 601.2 456.5 469.3 511.4 520.6 561.6 532.7 100.5 137.4 129.3 180.8 548.0 107.8 115.2 123.0 196.7 542.7 126.6 185.7 168.5 180.1 660.9
Resources 105.1 152.0 156.4 201.5 244.3 182.6 195.9 42.9 40.9 67.9 27.6 179.3 65.9 61.6 56.7 54.0 238.2 55.3 57.7 53.2 55.3 221.5
EBIT 2008 2009 2010 2011 2012 2013 2014 Q1 15 Q2 15 Q3 15 Q4 15 2015 Q1 16 Q2 16 Q3 16 Q4 16 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017
(in EUR million)
BAUER Group 167.5 84.4 88.4 82.3 72.0 30.1 76.4 1.2 14.8 20.4 54.3 90.7 9.8 13.3 21.3 25.9 70.3 8.5 30.2 27.7 23.2 89.6
Construction 46.3 25.7 28.8 17.9 22.0 21.2 26.0 4.9 5.5 2.0 1.5 13.9 4.8 2.6 10.4 12.0 29.7 0.9 12.4 8.1 -1.8 19.6
Equipment 118.3 51.3 48.3 53.0 34.0 32.2 36.0 -0.9 9.3 16.2 74.8 99.4 5.8 8.8 8.0 15.8 38.4 8.0 16.0 24.9 31.7 80.6
Resources 4.0 6.0 8.1 10.9 15.2 -24.0 15.9 -2.9 -0.3 2.0 -18.6 -19.8 -1.1 1.3 3.5 -7.6 -3.7 -0.1 0.9 -5.3 -5.5 -10.0
EBIT margin 2008 2009 2010 2011 2012 2013 2014 Q1 15 Q2 15 Q3 15 Q4 15 2015 Q1 16 Q2 16 Q3 16 Q4 16 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017
(in %)
BAUER Group 13.0% 7.7% 7.8% 6.7% 5.4% 2.1% 5.6% 0.4% 4.3% 5.4% 15.1% 6.6% 3.1% 4.0% 6.2% 6.4% 5.0% 2.2% 6.7% 6.4% 5.8% 5.4%
Construction 7.9% 5.3% 5.7% 3.5% 3.8% 3.2% 4.0% 3.1% 3.4% 1.1% 1.0% 2.1% 3.3% 1.7% 6.4% 7.8% 4.8% 0.5% 6.0% 3.8% -1.1% 2.5%
Equipment 19.7% 11.2% 10.3% 10.4% 6.5% 5.7% 6.8% -0.9% 6.8% 12.5% 41.4% 18.1% 5.4% 7.6% 6.5% 8.0% 7.1% 6.4% 8.6% 14.8% 17.6% 12.2%
Resources 3.8% 3.9% 5.2% 5.4% 6.2% -13.1% 8.1% -6.8% -0.7% 2.9% -67.4% -11.0% -1.7% 2.1% 6.2% -14.1% -1.6% -0.2% 1.5% -10.0% -9.9% -4.5%
© BAUER AG, D-86529 Schrobenhausen 18-04-12 IR-Presentation_FY_2017 52
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.