BAUER Aktiengesellschaft · HAM:B5A0

BAUER Aktiengesellschaft — H1 2018 Earnings Presentation

51 slides from BAUER Aktiengesellschaft's earnings presentation, Aug 10, 2018

  1. Slide 1: Group Presentation 6M/Q2 2018

    Group Presentation 6M/Q2 2018 August 10, 2018 Construction site of BAUER Spezialtiefbau GmbH, Germany

  2. Slide 2: Key Figures

    Key Figures 6M 2018 6M 2017* 6M 2018 ∆ 6M in EUR million in EUR million in % Total Group revenues, of which 902.3 792.3 -12.2% - Germany 260.8 219.1 -16.0% - International 641.5 573.2 -10.6% - Construction 431.6 327.1 -24.2% - Equipment 372.1 374.5 0.6% - Resources 127.7 119.2 -6.7% - Other/Consolid

  3. Slide 3: Highlights 6M 2018 – BAUER Group

    Highlights 6M 2018 – BAUER Group  Total Group revenues decreased by 12.2% to EUR 792.3 million (6M 2017: EUR 902.3 million).  Sales revenues decreased by 13.6% to EUR 717.1 million (6M 2017: EUR 830.2 million).  The financial year in the Equipment segment remains positive, the Construction segmen

  4. Slide 4: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials 6M/Q2 2018 & Guidance Appendix 18-08-10 IR-Presentation_Q2_2018 © BAUER AG, D-86529 Schrobenhausen 4

  5. Slide 5: BAUER Group 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

  6. Slide 6: 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

  7. Slide 7: 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

  8. Slide 8: 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 18-08-10 IR-Presentation_Q2_2018 © BAUER AG, D-86529 Schrobenhausen 8

  9. Slide 9: BAUER Group 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

  10. Slide 10: World construction markets

    World construction markets Bauer market potential Germany: good market; ++ Russia: - infrastructure Eastern Europe: slow positive o still remains weak USA / Canada: + budget raised development big need for infrastructure investments; individual Western Europe: recovery in most + large projects in US

  11. Slide 11: Global economic situation

    Global economic situation IMF projection of the real annual GDP growth in % 2.5 2.0 1.7 1.5 2.4 2.0 2.2 2.1 2018 2019 2018 2019 2.9 2.7 Russia Germany 2018 2019 2018 2019 CIS* 2018 2019 Europe 6.6 6.4 United States 3.2 3.6 6.5 6.6 2.3 2.5 2018 2019 2018 2019 3.4 3.7 China 2018 2019 Middle East & 201

  12. Slide 12: Regional breakdown Total Group revenues 6M 2018 – Group

    Regional breakdown Total Group revenues 6M 2018 – Group Total 792 in EUR million Germany 219 (28 %) Africa 30 (4 %) Americas 74 (9 %) 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 (7 %

  13. Slide 13: Regional breakdown Total Group revenues 6M 2018 – Segments

    Regional breakdown Total Group revenues 6M 2018 – Segments Construction segment Equipment segment Resources segment Total 319 Total 354 Total 119 in EUR million Germany 91 (29 %) Germany 62 (18 %) Germany 66 (56 %) Africa 5 (4 %) Africa 23 (7 %) Africa 2 (1 %) Americas 4 (3 %) Americas 19 (6 %) Amer

  14. Slide 14: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials 6M/Q2 2018 & Guidance Appendix 18-08-10 IR-Presentation_Q2_2018 © BAUER AG, D-86529 Schrobenhausen 14

  15. Slide 15: 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 ∆ 6M 1,200 1,772 1,045 -4.3% 1,000 1,656 1,668 996 1,008 978 1,555 -12.2% 1,600 1,397 1,379 -13.6% 900 1,200 902 600 830 792 800 717 300 400 0 0 2015 2016 201

  16. Slide 16: Construction segment – Highlights 6M 2018

    Financials Construction segment – Highlights 6M 2018 Construction  Total Group revenues were EUR 327.1 million, down 24.2% (previous year: EUR 431.6 million). 6M 2017 figures were at an unusually high level. This decline in revenues this year is due to a weaker utilization in Germany and postponeme

  17. Slide 17: Construction segment – Revenues and order development

    Financials Construction segment – Revenues and order development Construction Total Group revenues in EUR million -20.1% 250 221 227 211 193 197 199 193 195 201 200 178 177 187 183 178 185 177 176 171 176 153 156 151 150 100 50 0 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/1

  18. Slide 18: Equipment segment – Highlights 6M 2018

    Financials Equipment segment – Highlights 6M 2018 Equipment  Total Group revenues with EUR 374.5 million increased by 0.6% against the previous year (EUR 372.1 million). Sales revenues decreased slightly by 3.2% from EUR 312.3 million to EUR 302.2 million. It has to be considered, that in 2017 the

  19. Slide 19: Equipment segment – Revenues and order development

    Financials Equipment segment – Revenues and order development Equipment Sales revenues in EUR million -6.5% 250 205 197 200 181 186 180 171 169 174 143 137 150 125 128 129 123 127 129 115 108 115 104 103 100 100 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

  20. Slide 20: 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

  21. Slide 21: Resources segment – Highlights 6M 2018

    Financials Resources segment – Highlights 6M 2018 Resources  Total Group revenues decreased by 6.7% to EUR 119.2 million against the previous year of EUR 127.7 million.  EBIT decreased from EUR -0.8 million to EUR -6.7 million and earnings after tax from EUR -4.0 million to EUR -9.2 million.  The

  22. Slide 22: Resources segment – Revenues and order development

    Financials Resources segment – Revenues and order development Resources Total Group revenues in EUR million +4.5% 100 92 80 75 71 67 66 65 65 68 60 63 55 54 57 55 60 53 53 52 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

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: 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 -3.4% 800 721 717 711 720 736 726 709 686 701 700 672 684 674 629 646 628 624 640 605 604 608 576 549 480 320 160 0 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/

  26. Slide 26: 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

  27. Slide 27: Income statement 6M 2018

    Financials Income statement 6M 2018 in EUR '000 6M 2017* 6M 2018 ∆ in % Sales revenues (P&L) 830,242 717,104 -13.6% Consolidated revenues (P&L) 861,283 765,890 -11.1% Cost of materials -468,492 -393,561 -16.0% Personel expenses -191,082 -190,076 -0.5% Other operation expenses -116,278 -102,839 -11.6

  28. Slide 28: Balance sheet June 30, 2018

    Financials Balance sheet June 30, 2018 in EUR '000 June 30, 2017* June 30, 2018 ∆ in % Assets 1,750,356 1,706,252 -2.5% Non-current assets 637,655 634,191 -0.5% Intangible assets 23,190 19,237 -17.0% Property, plant and equipment and investment property 412,679 408,581 -1.0% Investments accounted fo

  29. Slide 29: Cash flow statement 6M 2018

    Financials Cash flow statement 6M 2018 in EUR '000 6M 2017* 6M 2018 ∆ in % Cash flow from operational activity -1,607 -29,648 n/a Cash flow from investment activity -27,719 -29,910 n/a Cash flow from financing activity 40,153 52,961 31.9% Free Cash Flow -29,326 -59,558 n/a Changes in liquid funds af

  30. Slide 30: 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

  31. Slide 31: 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 Quarterly Statement Q1 2018 May 14, 2018 Annual General Meeting June 28, 2018 Half-Year Interim Report to June 30, 2018 August 10, 2018 Quarterly

  32. Slide 32: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials 6M/Q2 2018 & Guidance Appendix 18-08-10 IR-Presentation_Q2_2018 © BAUER AG, D-86529 Schrobenhausen 32

  33. Slide 33: 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

  34. Slide 34: 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

  35. Slide 35: 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 18-08-10 IR-Presentation_Q2_2018 © BAUER AG, D-86529 Schrobenhausen 35

  36. Slide 36: 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 18-08-10 IR-Presentation_Q2_2018 © BAUER AG, D-86529 Schrobenhausen 36

  37. Slide 37: 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

  38. Slide 38: St. Petersburg, Russia – Foundation works for Lakhta Center

    Construction St. Petersburg, Russia – Foundation works for Lakhta Center 18-08-10 IR-Presentation_Q2_2018 © BAUER AG, D-86529 Schrobenhausen 38

  39. Slide 39: York, UK – Shaft sinking for Woodsmith Mine

    Construction York, UK – Shaft sinking for Woodsmith Mine 18-08-10 IR-Presentation_Q2_2018 © BAUER AG, D-86529 Schrobenhausen 39

  40. Slide 40: 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

  41. Slide 41: 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

  42. Slide 42: Product range: Duty-cycle cranes (MC series)

    Equipment Product range: Duty-cycle cranes (MC series) MC 76 MC 96 MC 128 18-08-10 IR-Presentation_Q2_2018 © BAUER AG, D-86529 Schrobenhausen 42

  43. Slide 43: 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

  44. Slide 44: 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

  45. Slide 45: Water – Process Water & Water Distribution Management

    Resources Water – Process Water & Water Distribution Management 18-08-10 IR-Presentation_Q2_2018 © BAUER AG, D-86529 Schrobenhausen 45

  46. Slide 46: Environment – Remediation of Kesslergrube landfill, Germany

    Resources Environment – Remediation of Kesslergrube landfill, Germany © Source: Press pictures Roche 18-08-10 IR-Presentation_Q2_2018 © BAUER AG, D-86529 Schrobenhausen 46

  47. Slide 47: Market environment – Germany

    Market environment – Germany German construction market in EUR billion in % Germany 2017/ Jan-May May 2018 2017 2016 2018/2017 Employees (in 1,000) 442.0 5.9 4.8 Revenues 76.9 8.5 7.5 Building construction 43.1 9.8 7.8 Foundation engineering 33.8 6.8 7.0 Orders received * in EUR billion 72.3 6.6 7.5

  48. Slide 48: BAUER share Facts & Figures

    BAUER share Facts & Figures Share performance (01/2017 – 08/2018)  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

  49. Slide 49: 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

  50. Slide 50: Key Figures Time Line FY 2008 – Q2 2018

    Key Figures Time Line FY 2008 – Q2 2018 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 Q1 18 Q2 18 (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 46

  51. Slide 51: 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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