BAUER Aktiengesellschaft · HAM:B5A0

BAUER Aktiengesellschaft — FY2017 Earnings Presentation

52 slides from BAUER Aktiengesellschaft's earnings presentation, Apr 12, 2018

  1. Slide 1: Group Presentation FY/Q4 2017

    Group Presentation FY/Q4 2017 April 12, 2018 Shaft sinking for Woodsmith Mine – United Kingdom

  2. Slide 2: Key Figures

    Key Figures FY 2017 FY 2016* FY 2017 ∆ FY in EUR million in EUR million in % Total Group revenues, of which 1,554.7 1,772.0 +14.0% - Germany 472.9 477.8 +1.1% - International 1,081.8 1,294.2 +19.6% - Construction 713.1 835.0 +17.1% - Equipment 634.4 754.5 +18.9% - Resources 262.4 248.2 -5.4% - Other

  3. Slide 3: Highlights FY 2017 – BAUER Group

    Highlights FY 2017 – BAUER Group  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-s

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

    BAUER Group Final figures vs. forecast and long-term targets 2017 forecast* 2017 final Long-term goal 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 pos

  5. Slide 5: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials FY/Q4 2017 & Guidance Appendix 18-04-12 IR-Presentation_FY_2017 © BAUER AG, D-86529 Schrobenhausen 5

  6. Slide 6: Mission & Strategy

    BAUER Group Mission & Strategy Mission EUR 1.8 billion total Group revenues The BAUER Group is a leading provider of services, equipment & products dealing with ground and groundwater. EUR 89.6 million EBIT Strategy 5.4%  The world is our market. EBIT margin 25.9%  Global network organization with

  7. Slide 7: Longstanding healthy business development

    BAUER Group Longstanding healthy business development Total Group revenues Total 1,772 in EUR million (segment after deducting Other/Consolidation) 1,800 1,600 Resources 248 1,400 1,200 Equipment 1,000 705 800 600 Construction Overseas 638 400 200 Construction Domestic 0 181 1980 1983 1985 1987 1989

  8. Slide 8: Longstanding healthy business development

    BAUER Group Longstanding healthy business development Total Group revenues in EUR million CAGR 5.5% 2,100 1,772 1,800 1,656 1,527 1,504 1,560 1,555 1,372 1,436 1,500 1,278 1,304 1,208 1,200 980 900 600 300 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sales revenues in EUR million CA

  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 18-04-12 IR-Presentation_FY_2017 © BAUER AG, D-86529 Schrobenhausen 9

  10. Slide 10: Chances

    BAUER Group Chances Construction Equipment Resources  Growing construction markets  Growth potential in new markets  Full-service provider for products worldwide. and with specialized machines. and solutions related to water.  Huge pent-up demand in  Strong position as a lot of efforts  Ground

  11. Slide 11: World construction markets

    World construction markets Bauer market potential Germany: very good; ++ Russia: - infrastructure Eastern Europe: slow positive o still remains weak USA / Canada: + budget raised development big need for infrastructure investments; reluctance Western Europe: weak markets with o in USA some positive

  12. Slide 12: Global economic situation

    Global economic situation IMF projection of the real annual GDP growth in % 2.0 1.8 1.8 1.6 2.1 2.1 2017 2018 2.1 1.9 2017 2018 2.2 2.3 Russia Germany 2017 2018 2017 2018 CIS* 2017 2018 Europe 6.8 6.5 United States 3.5 6.5 6.5 2.6 1.5 0.7 2017 2018 2017 2018 3.4 China 2017 2018 2.6 Middle East & 201

  13. Slide 13: Regional breakdown Total Group revenues FY 2017 – Group

    Regional breakdown Total Group revenues FY 2017 – Group Total 1,772 in EUR million Germany 478 (27 %) Africa 63 (3 %) Americas 228 (13 %) Full year 2016 Total 1,555 Germany 473 (30 %) in EUR million Africa 73 (5 %) Americas 233 (15 %) Asia-Pacific, Far East & Australia Europe (other) 278 (18 %) 92 (

  14. Slide 14: Regional breakdown Total Group revenues FY 2017 – Segments

    Regional breakdown Total Group revenues FY 2017 – Segments Construction segment Equipment segment Resources segment Total 819 Total 705 Total 248 in EUR million Germany 181 (22 %) Germany 121 (17 %) Germany 176 (71 %) Africa 9 (4 %) Africa 37 (5 %) Africa 17 (2 %) Americas 9 (4 %) Americas 98 (12 %)

  15. Slide 15: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials FY/Q4 2017 & Guidance Appendix 18-04-12 IR-Presentation_FY_2017 © BAUER AG, D-86529 Schrobenhausen 15

  16. Slide 16: 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 1,200 1,772 1,656 1,668 +14.0% 996 1,008 -3.0% 978 1,560 1,555 1,600 1,379 1,397 1,376 +19.4% 900 763 1,200 600 800 300 400 0 0 2014 2015 2016 2017 2014

  17. Slide 17: Construction segment – Highlights FY 2017

    Financials Construction segment – Highlights FY 2017 Construction  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,

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

    Financials Construction segment – Revenues and order development Construction Total Group revenues in EUR million -12.0% 250 221 227 201 211 193 197 199 193 195 200 178 177 187 183 176 178 185 177 171 153 156 150 100 50 0 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

  19. Slide 19: Equipment segment – Highlights FY 2017

    Financials Equipment segment – Highlights FY 2017 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

  20. Slide 20: Equipment segment – Revenues and order development

    Financials Equipment segment – Revenues and order development Equipment Sales revenues in EUR million -9.2% 250 205 197 200 181 186 180 171 169 143 137 150 125 128 129 123 127 115 108 115 104 103 100 100 50 0 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 Q

  21. Slide 21: 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 manufacturer saw a tremendous decline 200 187 between 2012 and 2016 of 31%. 162 157 150 135 130

  22. Slide 22: Resources segment – Highlights FY 2017

    Financials Resources segment – Highlights FY 2017 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 cont

  23. Slide 23: Resources segment – Revenues and order development

    Financials Resources segment – Revenues and order development Resources Total Group revenues in EUR million -3.3% 100 92 80 75 71 67 66 65 65 60 63 55 54 57 55 60 53 53 48 48 44 39 42 40 20 0 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

  24. Slide 24: Working capital & net debt – requirements and development

    Financials Working capital & net debt – requirements and development Group Bauer’s business model requires considerably more Working capital / net debt working capital than other construction companies. in EUR million Working capital Net debt 750 672 646 629 665 677  Current development: 580 611 60

  25. Slide 25: Working capital needs & cash flow

    Financials Working capital needs & cash flow Group  Equipment segment: Building construction 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 Negat

  26. Slide 26: 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 Group Working capital in EUR million -9.8% 800 721 717 711 720 736 726 701 700 709 686 672 684 674 629 646 628 605 604 608 640 549 480 320 160 0 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

  27. Slide 27: Working capital & net debt – Financing of future revenues

    Financials Working capital & net debt – Financing of future revenues Group Net debt is needed Working capital non-current & current debt – to finance mainly consists of inventory mainly liabilities to banks and receivables Inventory Construction Equipment Resources • Distribution on business segment

  28. Slide 28: Income statement FY 2017

    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

  29. Slide 29: Balance sheet December 31, 2017

    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. Invest

  30. Slide 30: Cash flow statement FY 2017

    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

  31. Slide 31: Forecast 2018

    Financials Forecast 2018 2017 final 2018 forecast Long-term goal 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% > 3

  32. Slide 32: Investor Relations: Financial calendar & contact

    Investor Relations Financial calendar & contact 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

  33. Slide 33: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials FY/Q4 2017 & Guidance Appendix 18-04-12 IR-Presentation_FY_2017 © BAUER AG, D-86529 Schrobenhausen 33

  34. Slide 34: 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 · 2017 1790 1900-1970 1980-1990 2000-2017 End of 1970’s: Early 1980’s: FY 2017: Start of Selling of equipment to 4. Jul 20

  35. Slide 35: 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

  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 18-04-12 IR-Presentation_FY_2017 © BAUER AG, D-86529 Schrobenhausen 36

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

    What is specialist foundation used for? Applications for projects Buildings Infrastructure Water – Energy Industry Foundations Excavation pits Cut-off walls Ground improvement 18-04-12 IR-Presentation_FY_2017 © BAUER AG, D-86529 Schrobenhausen 37

  38. Slide 38: Challenges of the world provide chances for the company

    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 the

  39. Slide 39: Construction: St. Petersburg, Russia – Foundation works for Lakhta Center

    Construction St. Petersburg, Russia – Foundation works for Lakhta Center 18-04-12 IR-Presentation_FY_2017 © BAUER AG, D-86529 Schrobenhausen 39

  40. Slide 40: Construction: Bad Duerkheim, Germany – Diaphragm wall for disposal site

    Construction Bad Duerkheim, Germany – Diaphragm wall for disposal site © euroluftbild.de 18-04-12 IR-Presentation_FY_2017 © BAUER AG, D-86529 Schrobenhausen 40

  41. Slide 41: Product range: Drilling rigs (BG series) – PremiumLine

    Equipment Product range: Drilling rigs (BG series) – PremiumLine BG 39 BG 55 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 Pr

  42. Slide 42: Product range: Drilling rigs (BG series) – ValueLine

    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 Val

  43. Slide 43: Product range: Duty-cycle cranes (MC series)

    Equipment Product range: Duty-cycle cranes (MC series) MC 76 MC 96 MC 128 18-04-12 IR-Presentation_FY_2017 © BAUER AG, D-86529 Schrobenhausen 43

  44. Slide 44: 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

  45. Slide 45: Resources: 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

  46. Slide 46: Water – Process Water & Water Distribution Management

    Resources Water – Process Water & Water Distribution Management 18-04-12 IR-Presentation_FY_2017 © BAUER AG, D-86529 Schrobenhausen 46

  47. Slide 47: Environment – Remediation of Kesslergrube landfill, Germany

    Resources Environment – Remediation of Kesslergrube landfill, Germany © Source: Press pictures Roche 18-04-12 IR-Presentation_FY_2017 © BAUER AG, D-86529 Schrobenhausen 47

  48. Slide 48: Market environment – Germany

    Market environment – Germany German construction market Germany 2016/ 2017/ December 2017 2017 2015 2016 Employees in 1000 442.0 2.7 5.9 Revenues in EUR billion 76.9 7.5 8.5 Building construction 43.1 7.8 9.8 Foundation engineering 33.8 7.1 6.8 Orders received in EUR billion 72.3 14.6 6.6 Housebuild

  49. Slide 49: BAUER share: Facts & Figures

    BAUER share Facts & Figures Share performance (01/2017 – 03/2018)  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 in EUR 2014 2015 2016 2017 2018 Earnings per share 0.8

  50. Slide 50: BAUER share: Dividend policy

    BAUER share Dividend policy Dividend payment Dividend policy founded on a reasonable in EUR per share 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 0.60 0.60 All shareholders shall parti

  51. Slide 51: Key Figures Time Line FY 2008 – FY 2017

    Key Figures Time Line FY 2008 – FY 2017 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

  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

BAUER Aktiengesellschaft — FY2017 Earnings Presentation on 6ix