BAUER Aktiengesellschaft · HAM:B5A0

BAUER Aktiengesellschaft — FY2018 Earnings Presentation

52 slides from BAUER Aktiengesellschaft's earnings presentation, Apr 15, 2019

  1. Slide 1: Group Presentation FY/Q4 2018

    Group Presentation FY/Q4 2018 April 15, 2019 Dam remediation at Forggensee Lake – Rosshaupten, Germany

  2. Slide 2: Highlights FY 2018 – BAUER Group

    Highlights FY 2018 – BAUER Group Total Group revenues Sales revenues Order backlog Total assets EUR 1,686 million EUR 1,589 million EUR 1,014 million EUR 1,632 million (-4.9%) (-4.7%) (+3.7%) (+0.9%) EBIT Earnings after tax Net debt Equity ratio EUR 100.1 million EUR 24.1 million EUR 561.9 million 2

  3. Slide 3: Key Figures FY 2018

    Key Figures FY 2018 FY 2017 FY 2018 ∆ FY in EUR million in EUR million in % Total Group revenues, of which 1,772.0 1,686.1 -4.9% - Germany 477.8 467.1 -2.3% - International 1,294.2 1,219.0 -5.8% - Construction 835.0 767.6 -8.1% - Equipment 754.5 723.1 -4.2% - Resources 248.2 261.5 +5.3% - Other/Cons

  4. Slide 4: Final figures 2018 vs. forecast and long-term targets

    Financials Final figures 2018 vs. forecast and long-term targets 2018 forecast 2018 final Long-term goal 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 th

  5. Slide 5: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials FY/Q4 2018 & Guidance Appendix 19-04-15 IR-Presentation_FY/Q4_2018 © BAUER AG, D-86529 Schrobenhausen 5

  6. Slide 6: BAUER Group Mission & Strategy

    BAUER Group Mission & Strategy Mission EUR 1.7 billion total Group revenues The BAUER Group is a leading provider of services, equipment & products dealing with ground and groundwater. EUR 100 million EBIT Strategy 6.3%  The world is our market. EBIT margin 26.5%  Global network organization with

  7. Slide 7: Longstanding healthy business development

    BAUER Group Longstanding healthy business development Total Group revenues Total 1,686 in EUR million (segment after deducting Other/Consolidation) 1,800 1,600 Resources 259 1,400 1,200 Equipment 1,000 672 800 Construction 600 Overseas 566 400 200 Construction Domestic 0 189 1980 1982 1984 1986 1988

  8. Slide 8: Longstanding healthy business development

    BAUER Group Longstanding healthy business development Total Group revenues in EUR million CAGR 4.6% 2,000 1,772 1,656 1,686 1,527 1,504 1,560 1,555 1,600 1,436 1,304 1,372 1,208 1,278 1,200 980 800 400 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sales revenues in EUR million C

  9. Slide 9: Worldwide network

    Worldwide network More than 110 subsidiaries in about 70 countries Schrobenhausen Permanent Offices: Construction Equipment sales Resources Equipment production Conroe Tianjin Kuala Lumpur 19-04-15 IR-Presentation_FY/Q4_2018 © BAUER AG, D-86529 Schrobenhausen 9

  10. Slide 10: Construction market environment vs. order backlog

    BAUER Group Construction market environment vs. order backlog Europe Germany o Market: recovery in most West European countries; slow USA / Canada + Market: infrastructure budgets raised development in Eastern Europe; Russia remains weak + Market: big need for infrastructure investments in USA, Cana

  11. Slide 11: Regional breakdown Total Group revenues FY 2018 – Group

    Regional breakdown Total Group revenues FY 2018 – Group Total 1,686 in EUR million Germany 467 (28 %) Africa 73 (4 %) Americas 171 (10 %) Full year 2017 Total 1,772 Germany 478 (27 %) in EUR million Africa 63 (3 %) Americas 228 (13 %) Asia-Pacific, Far East & Australia Europe (other) 426 (24 %) 118

  12. Slide 12: Regional breakdown Total Group revenues FY 2018 – Segments

    Regional breakdown Total Group revenues FY 2018 – Segments Construction segment Equipment segment Resources segment Total 755 Total 672 Total 259 in EUR million Germany 189 (25 %) Germany 100 (15 %) Germany 178 (68 %) Africa 10 (4 %) Africa 48 (6 %) Africa 15 (2 %) Americas 7 (3 %) Americas 44 (6 %)

  13. Slide 13: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials FY/Q4 2018 & Guidance Appendix 19-04-15 IR-Presentation_FY/Q4_2018 © BAUER AG, D-86529 Schrobenhausen 13

  14. Slide 14: Revenues, earnings & orders – Group

    Financials Revenues, earnings & orders – Group Revenues Order backlog in EUR million in EUR million Total Group revenues Sales revenues 2,000 ∆ FY 1,250 1,772 1,656 1,668 1,686 1,555 1,589 -4.9% 996 1,008 978 +3.7% 1,014 1,600 1,397 1,000 1,379 -4.7% 1,200 750 800 500 400 250 0 0 2015 2016 2017 2018

  15. Slide 15: Construction segment – Highlights FY 2018

    Financials Construction segment – Highlights FY 2018 Construction  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 cancellatio

  16. Slide 16: Construction segment – Revenues and order development

    Financials Construction segment – Revenues and order development Construction Total Group revenues in EUR million +30.6% 250 221 227 231 211 210 193 197 199 193 195 201 200 178 177 187 183 178 185 176 171 177 176 153 156 151 150 100 50 0 Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1

  17. Slide 17: Equipment segment – Highlights FY 2018

    Financials Equipment segment – Highlights FY 2018 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 succeede

  18. Slide 18: Equipment segment – Revenues and order development

    Financials Equipment segment – Revenues and order development Equipment Sales revenues in EUR million +7.6% 250 205 197 186 194 200 171 181 180 174 169 143 137 144 150 125 128 129 123 127 129 115 108 115 104 103 100 100 50 0 Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16

  19. Slide 19: Equipment segment – Market development vs. Bauer

    Financials Equipment segment – Market development vs. Bauer Equipment  Revenues of the world’s 50 largest construction Revenues of 50 largest construction equipment manufacturers in USD billion equipment manufacturers saw a tremendous 200 186 decline between 2012 and 2016 of 31%. In China the 163 1

  20. Slide 20: Resources segment – Highlights FY 2018

    Financials Resources segment – Highlights FY 2018 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 th

  21. Slide 21: Resources segment – Revenues and order development

    Financials Resources segment – Revenues and order development Resources Total Group revenues in EUR million +30.6% 100 92 80 75 71 72 67 66 68 70 63 65 65 60 57 60 55 53 53 54 55 52 48 48 44 39 42 40 20 0 Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17

  22. Slide 22: Working capital & net debt – Financing of future revenues

    Financials Working capital & net debt – Financing of future revenues Key facts  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 

  23. Slide 23: Working capital & net debt – Current development

    Financials Working capital & net debt – Current development Working capital / net debt in EUR million Current development: Working capital Net debt 750  Net debt fell very sharply by 17.7% to EUR 561.9 672 665 677 605 604 646 629 608 million in the last two years. Inventories, finished 594 600 549

  24. Slide 24: Working capital & net debt are lower year-end than during the year

    Financials Working capital & net debt are lower year-end than during the year Working capital in EUR million +0.6% 800 721 717 720 736 726 686 711 701 700 709 684 672 674 646 605 604 629 608 628 624 629 640 576 552 549 480 320 160 0 Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2

  25. Slide 25: Income statement FY 2018

    Financials Income 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

  26. Slide 26: Balance sheet December 31, 2018

    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

  27. Slide 27: Cash flow statement FY 2018

    Financials Cash 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 l

  28. Slide 28: Forecast 2019 – Increase of earnings after tax

    Financials Forecast 2019 – Increase of earnings after tax 2018 final 2019 forecast Long-term goal 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 highe

  29. Slide 29: Investor Relations: Financial calendar & contact

    Investor Relations Financial calendar & contact 2019 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 C

  30. Slide 30: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials FY/Q4 2018 & Guidance Appendix 19-04-15 IR-Presentation_FY/Q4_2018 © BAUER AG, D-86529 Schrobenhausen 30

  31. Slide 31: The history – Two centuries of experience

    BAUER Group The history – Two centuries of experience 1790 · 1900 · 1902 · 1928 · 1948 · 1956 · 1958 · 1967 · 1969 · 1972 · 1975 · 1976 · 1984 · 1990 · 1992 · 1994 · 1998 · 2001 · 2018 1790 1900-1970 1980-1990 2000-2018 End of 1970’s: Early 1980’s: FY 2018: Start of Selling of equipment to 4. Jul 20

  32. Slide 32: Management Board

    Management Board BAUER AG Michael Stomberg (CEO) Florian Bauer Hartmut Beutler (CFO) Peter Hingott  HSE  Digitalization  Financing & Treasury  Group Controlling &  IT  Development  Legal Affairs & Insurance Accounting  Process Management Coordination  IR & Corporate  Human Resources  Qual

  33. Slide 33: The three segments

    BAUER Group The three segments  Target: ~ 40 % of  Target: ~ 20 % of total Group revenues total Group revenues  Market leader in  Activities in specialist foundation environmental equipment technology, deep drilling, well  New products for construction, mining, deep drilling materials and offsh

  34. Slide 34: Challenges of the world provide chances for the company

    BAUER Group Challenges of the world provide chances for the company Infrastructure Urbanization Water The increasing mobility in society The megatrend of urbanization requires To deal with the scarcity of drinking demands new and renewed transport construction solutions for the city of water, purifi

  35. Slide 35: Construction – Key facts

    Construction Key facts Construction 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 o

  36. Slide 36: What is specialist foundation?

    What is specialist foundation? Building an excavation pit Mixed-In-Place Method Diaphragm and Cut-off Wall Piling Retaining Injection Wall Anchor Permeation Grouting Pile Foundation 19-04-15 IR-Presentation_FY/Q4_2018 © BAUER AG, D-86529 Schrobenhausen 36

  37. Slide 37: What is specialist foundation used for?

    What is specialist foundation used for? Applications Excavation Pits Cut-off Walls Foundations Ground Improvement for every problem and requirement as solution for dams and dikes for the highest buildings in the world allows projects on weak ground 19-04-15 IR-Presentation_FY/Q4_2018 © BAUER AG, D-8

  38. Slide 38: Construction – Shaft sinking for Woodsmith Mine, York, UK

    Construction York, UK – Shaft sinking for Woodsmith Mine 19-04-15 IR-Presentation_FY/Q4_2018 © BAUER AG, D-86529 Schrobenhausen 38

  39. Slide 39: Equipment – Key facts

    Equipment Key facts Equipment 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

  40. Slide 40: Whole range of products for special foundation engineering

    Equipment Whole range of products for special foundation engineering 19-04-15 IR-Presentation_FY/Q4_2018 © BAUER AG, D-86529 Schrobenhausen 40

  41. Slide 41: Product range: Deep Drilling

    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 a

  42. Slide 42: Resources – Key facts

    Resources Key facts Resources 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 environmen

  43. Slide 43: Pool of competences from a single hand

    Resources Pool of competences from a single hand Water Environment Natural Resources  Industrial Waste Water  Remediation  Exploration Drilling  Process & Produced Water  Landfill Restoration  Deep Geothermal Drilling  NORM  Decommissioning  Well Drilling  Constructed Wetlands  Demolition

  44. Slide 44: Water – Process Water & Water Distribution Management

    Resources Water – Process Water & Water Distribution Management 19-04-15 IR-Presentation_FY/Q4_2018 © BAUER AG, D-86529 Schrobenhausen 44

  45. Slide 45: Environment – World's biggest reed bed treatment plant, Oman

    Resources Environment – World’s biggest reed bed treatment plant, Oman 19-04-15 IR-Presentation_FY/Q4_2018 © BAUER AG, D-86529 Schrobenhausen 45

  46. Slide 46: Market environment – Germany

    Market environment – Germany German construction market in EUR billion in % Germany 2017/ 2018 December 2018 2018 2016 2017 Employees (in 1,000) 463.7 5.9 4.9 Revenues 85.2 8.5 10.8 Building construction 47.2 9.8 9.5 Foundation engineering 38.0 6.8 12.5 Orders received * in EUR billion 79.5 6.6 10.0

  47. Slide 47: Global economic situation

    Global economic situation IMF projection of the real annual GDP growth in % 1.6 1.7 1.4 0.8 2019 2020 2019 2020 2.3 1.9 1.3 1.5 Russia Germany 2019 2020 2019 2020 6.3 6.1 Europe United States 3.2 6.3 6.3 1.3 2019 2020 2019 2020 2.4 3.5 3.7 China 1.4 Middle East & 2019 2020 North Africa Developing As

  48. Slide 48: Working capital needs – Comparison with building construction

    Financials Working capital needs – Comparison with building construction Specialist foundation engineering Building construction pre-financing need positive cash contribution EUR EUR Contract value Contract value Negative cash Negative cash contribution contribution Positive cash contribution 12 24

  49. Slide 49: BAUER share – Facts & Figures

    BAUER share Facts & Figures Shareholder structure Share performance (01/2018 – 04/2019) Free float Bauer family 51.81 % 48.19 %  Listed on Frankfurt stock exchange (Prime Standard), in EUR 2015 2016 2017 2018 2019 since July 4, 2006 Earnings per share 1.73 0.66 0.16 1.32 ---  Share capital EUR 73,

  50. Slide 50: BAUER share – Dividend policy

    BAUER share Dividend policy Dividend payment Dividend policy founded on a reasonable balance between shareholders and company in EUR per share 1.20  fair participation of shareholders  maintaining continuity 1.00 1.00  safeguarding of the equity ratio 0.90 All shareholders shall participate in th

  51. Slide 51: Key Figures Time Line FY 2008 – FY 2018

    Key Figures Time Line FY 2008 – FY 2018 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 (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 4

  52. Slide 52: Disclaimer

    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

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