BAUER Aktiengesellschaft · HAM:B5A0

BAUER Aktiengesellschaft — Bauer — 9M 2014 Earnings Presentation

48 slides from BAUER Aktiengesellschaft's earnings presentation, Nov 14, 2014

  1. Slide 1: BAUER AG Group Presentation First nine months 2014

    BAUER AG Group Presentation First nine months 2014 Cut-off wall for flood prevention – Rennersdorf, Germany 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen

  2. Slide 2: Key Figures

    Key Figures 9M 2014 Total Group revenues Net profit in EUR million in EUR million 1,372 1,436 1,504 1,104 1,163 34.1 25.8 -19.4 -21.4 -5.0 1,600 48 36 1,200 24 800 12 0 400 -12 0 -24 2011 2012 2013 9M 2013* 9M 2014 2011 2012 2013 9M 2013 9M 2014 Orders in hand Employees in EUR million in average 750

  3. Slide 3: Mission & Strategy

    Mission & Strategy Our mission Services, equipment & products dealing with ground and groundwater Our strategy  The world is our market.  World market leadership for foundation technology.  Powerful development of drilling applications and related services for resources, water and energy markets.

  4. Slide 4: Key Figures 9M 2014 Main topics

    Key Figures 9M 2014 Main topics  Total Group revenues with EUR 1,163.2 million were 5.4 % above previous year (EUR 1,103.9 million). EBIT with EUR 38.3 million was considerably higher than in the previous year with EUR 12.6 million.  Revenues of the Construction segment decreased by 1.7 % to EUR 5

  5. Slide 5: Key Figures

    Key Figures 9M 2014 9M 2013* 9M 2014 ∆ 9M in EUR million in EUR million in % Total Group revenues, of which 1,103.9 1,163.2 5.4 % - Germany 336.9 348.7 3.5 % - International 767.0 814.5 6.2 % - Construction 542.7 533.3 -1.7 % - Equipment 455.5 507.5 11.4 % - Resources 146.6 160.6 9.6 % - Consolidati

  6. Slide 6: Contents

    Contents 1 Overview BAUER Group p. 7 2 BAUER market environment p. 14 3 Regional breakdown of revenues p. 17 4 Financials p. 19 5 Guidance 2014 p. 26 6 Appendix p. 27 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 6

  7. Slide 7: BAUER Group: The three segments

    1 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, mining, deep drilling, well  New products for construction, mining, deep drilling materials

  8. Slide 8: What is specialist foundation?

    1 What is specialist foundation? Building an excavation pit Supporting Wall Ground Water Underpinning Injection Injection Anchor Pile Foundation Sealing Slab 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 8

  9. Slide 9: What is specialist foundation used for?

    1 What is specialist foundation used for? Applications for projects Buildings Infrastructure Water – Energy Industry Foundations Excavation pits Cut-off walls Ground improvement 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 9

  10. Slide 10: Resources Segment

    1 Resources Segment The three competence areas Materials Exploration & Mining Environment Services Full-line provider for  Production drilling  Disposal of polluted areas materials in the field of (for example: water wells)  Cleaning of process water  well construction  Exploration drilling and

  11. Slide 11: Total Group Revenues

    1 Total Group Revenues Longstanding healthy business development in EUR million (segment after decucting Other/Consolidation) Total 1,504 Financial crisis Resources 196 Equipment 591 Far East crisis German reunification Construction Overseas 532 Construction Domestic 185 Note: 2000 – 2002 based on H

  12. Slide 12: Worldwide network

    1 Worldwide network More than 110 subsidiaries in about 70 countries Permanent Offices: Construction Equipment sales BAUER Maschinen KSM, Resources Kurgan, Russia Equipment production locations BAUER Tianjin Technologies, Tianjin, China BAUER Manufacturing Inc. BAUER Group, plant Aresing near GWE Gr

  13. Slide 13: BAUER Group: Strengths & Chances

    1 BAUER Group Strengths & Chances Strengths  Strategic business model with three forward-looking segments providing high level of synergies.  Global network organisation with flexible, decentralized management.  World market leader in foundation equipment with innovative strength in enhancing exi

  14. Slide 14: Challenges of the world provide chances for the company

    1 BAUER Group Challenges of the world provide chances for the company Urbanization Infrastructure Water The megatrend urbanization leads to High demand for new infrastructure and The shortage of clean drinking water more complex inner-city solutions for restoration of existing structures is one of t

  15. Slide 15: World construction markets

    2 World construction markets Bauer market potential Western Europe: Eastern Europe: weak markets, slowly positive development, Germany is quite good Russia is difficult to predict + + - + - USA / Canada: Far East: public demand, positive development power plants, dams, etc. + + in all areas, especia

  16. Slide 16: Global economic situation

    2 Global economic situation IMF projection of the real annual GDP growth in % 1,4 1,5 0,2 0,5 1,8 1,6 2014 2015 1,4 2014 2015 0,8 2,3 Russia 1,8 Germany 2014 2015 7,4 2014 2015 7,1 CIS* 2014 2015 European Union United States 6,5 6,6 3,9 2,7 1,4 5.8 0,3 5.1 2014 2015 2014 2015 2014 2015 China Middle

  17. Slide 17: Market environment: Orders & Currency risks

    2 Market environment Orders & Currency risks Order backlog (Orders in hand) Currency Risks 9M 2014 Reach in months Construction in relation to total  Project size EUR 100,000 up to EUR 70 million Group revenues full year 2013  ~ 50 / 50 infrastructure / large industrial buildings  ~ 600 projects

  18. Slide 18: Regional breakdown

    3 Regional breakdown Total Group revenues 9M 2014 in EUR million Total 1,163 Germany 348 (30 %) Africa 51 (4 %) America 130 (11 %) Asia-Pacific, Full year 2013 (adjusted) Far East & Australia in EUR million Germany 410 (27 %) 276 (24 %) Total 1,504 Africa 58 (4 %) America 186 (12 %) Asia-Pacific, Fa

  19. Slide 19: Regional breakdown by segment

    3 Regional breakdown Construction, Equipment, Resources 9M 2014 Construction segment Equipment segment Resources segment in EUR million Total 528 Total 481 Total 154 Germany 145 (27 %) Germany 113 (24 %) Germany 90 (59 %) Africa 3 (2 %) Africa 41 (8 %) Africa 7 (1 %) America 48 (9 %) America 76 (16

  20. Slide 20: Financials: Revenues, earnings & orders

    4 Financials Revenues, earnings & orders Revenues Orders in hand in EUR million in EUR million Total Group revenues Sales revenues 836.7 1,600 1,504 880 1,436 1,402 785.0 765.2 780.8 1,372 1,344 750.0 1,220 1,163 1,200 1,104 660 1,014 969 800 440 400 220 0 0 2011 2012 2013 9M 2013 9M 2014 2011 2012

  21. Slide 21: Revenues, earnings & orders per segment

    4 Financials Revenues, earnings & orders per segment in EUR '000 Q3 2013* Q3 2014 ∆ Q3 in % 9M 2013* 9M 2014 ∆ 9M in % FY 2013* Construction Total Group revenues 196,631 181,805 -7.5 % 542,730 533,253 -1.7 % 731,274 Sales revenues 182,324 163,503 -10.3 % 474,409 492,112 3.7 % 657,920 Orders in hand

  22. Slide 22: Working capital needs & net debt

    4 Financials Working capital needs & net debt Bauer’s business model with its three segments Net working capital requires considerably more working capital than in EUR million other companies in construction markets. 800 600  Changes during the year: - Levels of working capital in the balance sheet

  23. Slide 23: Working capital needs & cash flow

    4 Financials Working capital needs & cash flow Building construction  Equipment segment: EUR positive cash contribution - 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. Contract value Negative

  24. Slide 24: Income statement 9M 2014

    4 Financials Income statement 9M 2014 in EUR '000 9M 2013* 9M 2014 ∆ 9M in % FY 2013* Consolidated revenues (P&L) 1,051,941 1,136,422 8.0% 1,444,561 Sales revenues (P&L) 968,587 1,013,687 4.7% 1,404,169 Material costs -556,027 -600,828 8.1% -755,906 Personnel costs -257,466 -265,171 3.0% -342,815 De

  25. Slide 25: Balance sheet September 30, 2014

    4 Financials Balance sheet September 30, 2014 in EUR '000 Sept. 30, 2013* Sept. 30, 2014 ∆ in % Dec 31, 2013* Assets 1,653,672 1,699,628 2.8% 1,585,218 Intangible assets 31,857 33,871 6.3% 35,388 Property, plant and equipment 461,864 442,649 -4.2% 459,537 Long term financial assets 23,304 22,921 -1.

  26. Slide 26: Cash flow statement 9M 2014

    4 Financials Cash flow statement 9M 2014 in EUR '000 9M 2013 9M 2014 ∆ 9M in % FY 2013 Operating cash flow -103,759 -22,625 -78.2% 38,416 Investing cash flow -48,993 -24,686 -49.6% -67,153 Financing cash flow 148,174 41,315 -72.1% 43,576 Free Cash Flow -152,752 -47,311 -69.0% -28,737 Changes in liqu

  27. Slide 27: Guidance 2014

    5 Guidance 2014 Top-line growth with an increase in profitability 2013e* 2013 final 2014e Total Group Revenues ~ 1,500 EUR million 1,504 EUR million ~ 1,550 EUR million EBIT ~ 25 EUR million 30.1 EUR million ~ 75 EUR million at lower end of Net profit ~ -20 EUR million -19.4 EUR million 15-20 EUR mi

  28. Slide 28: Appendix

    Appendix A History of Bauer p. 28 B Construction projects p. 30 C Equipment programme p. 35 D Resources projects p. 40 E Market environment Germany p. 43 F BAUER share p. 44 G Key Figures Time Line p. 46 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 28

  29. Slide 29: History of Bauer

    A History of Bauer Two centuries of experience 1790 · 1900 · 1902 · 1928 · 1948 · 1956 · 1958 · 1967 · 1969 · 1972 · 1975 · 1976 · 1984 · 1990 · 1992 · 1994 · 1998 · 2001 · 2013 1790 1900-1970 1980-1990 2000-2013 End of 1970’s: Early 1980’s: 4. Jul 2006: FY 2013: Start of Selling of equipment to IPO

  30. Slide 30: Bauer's home base

    A Bauer’s home base Headquarters and plant Schrobenhausen, Germany 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 30

  31. Slide 31: Construction: Foundation works for Lakhta Tower

    B Construction St. Petersburg, Russia – Foundation works for Lakhta Tower 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 31

  32. Slide 32: Construction: Hong Kong-Zhuhai-Macau bridge foundation

    B Construction Hong Kong – Foundation of Hong Kong-Zhuhai-Macau bridge 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 32

  33. Slide 33: Construction: Alta Terra pile foundation, Panama City

    B Construction Panama City, Panama – Pile foundation for Alta Terra project 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 33

  34. Slide 34: Construction: Schwarzkopf tunnel bypass

    B Construction Germany – Schwarzkopf tunnel bypass 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 34

  35. Slide 35: Drilling rigs (BG-systems) – ValueLine

    C Equipment Product range: Drilling rigs (BG-systems) – ValueLine BG 20 BG 30 BG 38 ValueLine The BG ValueLine is a fully dedicated Kelly drilling rig. 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 35

  36. Slide 36: Drilling rigs (BG-systems) – PremiumLine

    C Equipment Product range: Drilling rigs (BG-systems) – PremiumLine BG 20 BG 42 BG 50 PremiumLine Multi-purpose drilling rigs for various applications of foundation works. 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 36

  37. Slide 37: Product range: Foundation Cranes

    C Equipment Product range: Foundation Cranes MC 64 MC 96 MC 128 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 37

  38. Slide 38: Product range: Deep Drilling

    C Equipment Product range: Deep Drilling RB 50 TBA 100 TBA 440 M1 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 38

  39. Slide 39: Product range: Underwater Drilling

    C Equipment Product range: Underwater Drilling 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 39

  40. Slide 40: Resources: Materials

    D Resources Materials Amman, Jordan – Drilling works and installation of production wells 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 40

  41. Slide 41: Resources: Exploration and Mining Services

    D Resources Exploration and Mining Services Canada – Diavik Mine Oil drilling rig of Site Goup Tulves, South Tyrol 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 41

  42. Slide 42: Resources: Environment

    D Resources Environment One third of total area visible Oman – Reed Bed Water Treatment Plant 14-11-14 IR-Presentation_9M_2014 © BAUER AG, D-86529 Schrobenhausen 42

  43. Slide 43: Market environment – Germany

    E Market environment – Germany German construction market Absolute Figures Change in % 2013 West Germany East Germany August 2014 West- East- 2013/ 2012/ Jan-Aug 2013/ 2012/ Jan-Aug Germany Germany 1995 2011 2014/2013 1995 2011 2014/2013 Employees in 1000 573.1 183.3 -38.3 2.1 -2.1 -62.0 -0.5 -2.2 R

  44. Slide 44: BAUER share: Facts & Figures

    F BAUER share Facts & Figures Share performance (01/2014 – 11/2014)  Listed on Frankfurt stock exchange, SDAX Prime Standard, since July 4, 2006 DAX  Share capital EUR 73,001,420.45 BAUER AG  Shares issued 17,131,000  Issue price EUR 16.75 Trading volume  Listed in SDAX (MDAX from 22.09.2008 to

  45. Slide 45: BAUER share: Dividend policy

    F BAUER share Dividend policy Dividend payment (in EUR per share) Dividend policy founded on a reasonable balance between shareholders and company 1.20  fair participation of shareholders 1.00 1.00  continuity over the years 0.90  safeguarding of the equity base All shareholders shall participate

  46. Slide 46: Key Figures Time Line Q3 2011 – Q3 2014

    G Key Figures Time Line Q3 2011 – Q3 2014 Total Group Revenues 2008 2009 2010 Q3 11 Q4 11 2011 Q1 12 Q2 12 Q3 12 Q4 12 2012 Q1 13 Q2 13 Q3 13 Q4 13 2013 Q1 14 Q2 14 Q3 14 (in EUR million) BAUER Group 1,527.2 1,275.8 1,304.0 369.1 362.9 1,371.8 340.0 361.6 361.7 372.5 1,435.8 330.7 390.7 382.6 400.2

  47. Slide 47: BAUER Aktiengesellschaft

    BAUER Aktiengesellschaft Financial calendar 2015 Publication Annual Report 2014 April 10, 2015 Annual Press Conference April 10, 2015 Analyst Conference April 10, 2015 Annual General Meeting June 25, 2015 Interim Report to March 31, 2015 May 13, 2015 Half-Year Interim Report to June 30, 2015 August

  48. Slide 48: 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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