BAUER Aktiengesellschaft · HAM:B5A0

BAUER Aktiengesellschaft — Bauer — FY 2016 Earnings Presentation

52 slides from BAUER Aktiengesellschaft's earnings presentation, Apr 13, 2017

  1. Slide 1: BAUER AG Group Presentation FY/Q4 2016

    BAUER AG Group Presentation FY/Q4 2016 BAUER MC 64 duty-cycle crane with cutter BCM 10, Shanghai 17-04-13 IR-Presentation_FY_2016 © BAUER AG, D-86529 Schrobenhausen

  2. Slide 2: Key Figures FY 2016

    Key Figures FY 2016 FY 2015* FY 2016 ∆ FY in EUR million in EUR million in % Total Group revenues, of which 1,656.4 1,586.1 -4.2 % - Germany 473.7 481.0 +1.6 % - International 1,182.7 1,105.1 -6.6 % - Construction 742.9 722.1 -2.8 % - Equipment 753.1 651.7 -13.5 % - Resources 221.6 264.7 +19.5 % - O

  3. Slide 3: Highlights FY 2016 – BAUER Group

    Highlights FY 2016 – BAUER Group  Total Group revenues decreased by 4.2 % to EUR 1,586.1 million (2015: EUR 1,656.4 million). The figure for 2015 included revenues from the divestment and revaluation of businesses amounting to EUR 77.8 million. Without this effect, total Group revenues were roughly

  4. Slide 4: Highlights FY 2016 – Segments

    Highlights FY 2016 – Segments Construction  Total Group revenues decreased by 2.8 % to EUR 722.1 million (2015: EUR 742.9 million). EBIT was up from EUR 13.9 million to EUR 30.4 million. Earnings after tax were EUR 9.5 million (2015: EUR -7.3 million). Order backlog, with EUR 585.3 million (2015: E

  5. Slide 5: Final figures vs. forecast and long-term targets

    BAUER Group Final figures vs. forecast and long-term targets 2016 forecast* 2016 final Long-term  slightly below Total Group Revenues 1,586 EUR million 1,650 EUR million Revenue growth -4.2 % 3-8% EBIT ~ 65 EUR million  68.3 EUR million EBIT margin 4.9 % 7-9% Earnings after tax ~ 10 - 15 EUR milli

  6. Slide 6: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials Q4/FY 2016 & Guidance Appendix 17-04-13 IR-Presentation_FY_2016 © BAUER AG, D-86529 Schrobenhausen 6

  7. Slide 7: Mission & Strategy

    BAUER Group Mission & Strategy Mission EUR 1.6 billion total Group revenues The BAUER Group is a leading provider of services, equipment & products dealing with ground and groundwater. EUR 68.3 million EBIT Strategy 4.9 %  The world is our market. EBIT margin 25.5 %  Global network organization wi

  8. Slide 8: Total Group revenues

    Total Group revenues Longstanding healthy business development in EUR million (segment after deducting Other/Consolidation) Total 1,586 1,800 1,600 Resources 262 1,400 1,200 Equipment 1,000 615 800 Construction 600 Overseas 493 400 200 Construction Domestic 0 216 1980 1982 1984 1986 1988 1990 1992 1

  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 17-04-13 IR-Presentation_FY_2016 © 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 Russia: - Germany: very good + Eastern Europe: slowly positive o crisis regarding Ukraine; difficult to predict. USA / Canada: + development public demand, infrastructure, power Western Europe: weak markets with o plants, dams, etc. some positive tre

  12. Slide 12: Global economic situation

    Global economic situation IMF projection of the real annual GDP growth in % -0.8 1.1 1.7 1.4 1.7 -0.3 1.4 2016 2017 1.5 2016 2017 2.2 Russia 1.6 Germany 2016 2017 2016 2017 CIS* 6.6 6.2 2016 2017 Europe United States 6.5 6.3 3.4 3.4 0.5 -3.3 2016 2017 2016 2017 2016 2017 2.9 China Middle East & 2016

  13. Slide 13: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials Q4/FY 2016 & Guidance Appendix 17-04-13 IR-Presentation_FY_2016 © 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 1.800 1.200 1.560 1.656 1.504 1.586 996 1.008 1.402 1.376 1.379 1.397 1.350 900 765 763 900 600 450 300 0 0 2013 2014 2015 2016 2013 2014 2015 2016 Earnings Order i

  15. Slide 15: Construction segment – Highlights FY 2016

    BAUER Group Construction segment – Highlights FY 2016 Construction  Total Group revenues decreased by 2.8 % to EUR 722.1 million, while EBIT was up from EUR 13.9 million to EUR 30.4 million and earnings after tax from EUR -7.3 million to EUR 9.5 million.  EBIT margin of 4.9 % reached the mid-term

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

    BAUER Group Construction segment – Revenues and order development Construction Total Group revenues in EUR million 250 197 199 206 193 187 193 195 184 200 178 177 183 176 178 172 153 160 150 100 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 Q2/16 Q3/16 Q4/16 Orde

  17. Slide 17: Equipment segment – Highlights FY 2016

    BAUER Group Equipment segment – Highlights FY 2016 Equipment  Total Group revenues fell by 13.5 % from EUR 753.1 million to EUR 651.7 million. In 2015, revenues from the divestment and revaluation of businesses totaling EUR 77.8 million were included. Therefore, EBIT fell from EUR 99.4 million to E

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

    BAUER Group Equipment segment – Revenues and order development Equipment Sales revenues in EUR million 250 205 197 200 171 181 143 137 150 125 128 129 123 115 108 115 104 103 100 100 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 Q4/16 Order intake in

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

    BAUER Group 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 2015 of 28%. 162 157 150 135 

  20. Slide 20: Resources segment – Highlights FY 2016

    BAUER Group Resources segment – Highlights FY 2016 Resources  Total Group revenues significantly increased by 19.5 % to EUR 221.6 million. EBIT increased from EUR -19.8 million to EUR -3.2 million and earnings after tax were up from EUR -29.4 million to EUR -8.5 million.  Order backlog grew by 0.8

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

    BAUER Group Resources segment – Revenues and order development Resources Total Group revenues in EUR million 100 92 80 75 72 67 67 60 59 60 55 53 53 54 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 Order backlog in EUR million

  22. Slide 22: Regional breakdown – Total Group revenues FY 2016

    Financials Regional breakdown – Total Group revenues FY 2016 in EUR million Total 1,586 Germany 481 (30 %) Africa 75 (5 %) Americas 236 (15 %) Full year 2015 in EUR million Germany 474 (29 %) Total 1,656 Africa 77 (4 %) Americas 297 (18 %) Asia-Pacific, Far East & Australia Europe (other) 348 (21 %)

  23. Slide 23: Regional breakdown – Segments FY 2016

    Financials Regional breakdown – Segments FY 2016 Construction segment Equipment segment Resources segment in EUR million Total 709 Total 615 Total 262 Germany 216 (30 %) Germany 164 (16 %) Germany 167 (64 %) Africa 49 (7 %) Africa 20 (2 %) Africa 11 (4 %) Americas 76 (11 %) Americas 172 (23 %) Ameri

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

    Financials Working capital & net debt – requirements and development Working capital / net debt Bauer’s business model with its three segments in EUR million Working capital Net debt requires considerably more working capital than 750 672 646 665 677 other companies in construction markets. 626 645

  25. Slide 25: Working capital needs & cash flow

    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 ca

  26. Slide 26: Income statement FY 2016

    Financials Income statement FY 2016 in EUR '000 12M 2015 12M 2016 ∆ in % Sales revenues (P&L) 1,378,991 1,396,881 1.3% Consolidated revenues (P&L) 1,587,946 1,488,576 -6.3% Cost of materials -752,532 -717,992 -4.6% Personel expenses -376,118 -369,700 -1.7% Other operation expenses -274,235 -242,495

  27. Slide 27: Balance sheet December 31, 2016

    Financials Balance sheet December 31, 2016 in EUR '000 Dez. 31, 2015 Dez. 31, 2016 ∆ in % Assets 1,656,908 1,701,418 2.7% A. Non-current assets 618,244 642,174 3.9% I. Intangible assets 27,455 25,640 -6.6% II. Property, plant and equipment and investment property 404,356 407,977 0.9% III. Investment

  28. Slide 28: Cash flow statement FY 2016

    Financials Cash flow statement FY 2016 in EUR '000 12M 2015 12M 2016 ∆ in % Cash flow from operational activity 32,425 124,879 n/a Cash flow from investment activity -37,492 -66,675 77.8% Cash flow from financing activity 9,119 -64,172 n/a Free Cash Flow -5,067 58,204 n/a Changes in liquid funds aff

  29. Slide 29: Forecast 2017

    BAUER Group Forecast 2017 2016 final 2017 forecast Long-term Total Group Revenues 1,586 EUR million ~ 1,700 EUR million Revenue growth -4.2 % 3-8% EBIT 68.3 EUR million ~ 75.0 EUR million EBIT margin 4.9 % 7-9% Earnings after tax 14.4 EUR million ~ 23 - 28 EUR million Equity ratio 25.5 % > 30 % Tunn

  30. Slide 30: Financial calendar & contact

    Investor Relations Financial calendar & contact Annual Report 2016 April 13, 2017 Annual Press Conference April 13, 2017 Analyst Conference April 13, 2017 Annual General Meeting June 29, 2017 Quarterly Statement Q1 2017 May 15, 2017 Half-Year Interim Report to June 30, 2017 August 11, 2017 Quarterly

  31. Slide 31: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials Q4/FY 2016 & Guidance Appendix 17-04-13 IR-Presentation_FY_2016 © BAUER AG, D-86529 Schrobenhausen 31

  32. Slide 32: 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 · 2016 1790 1900-1970 1980-1990 2000-2016 End of 1970’s: Early 1980’s: FY 2016: Start of Selling of equipment to 4. Jul 20

  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: What is specialist foundation?

    What is specialist foundation? Building an excavation pit Supporting Wall Ground Water Underpinning Injection Injection Anchor Pile Foundation Sealing Slab 17-04-13 IR-Presentation_FY_2016 © BAUER AG, D-86529 Schrobenhausen 34

  35. Slide 35: 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 17-04-13 IR-Presentation_FY_2016 © BAUER AG, D-86529 Schrobenhausen 35

  36. Slide 36: 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

  37. Slide 37: Solutions for the biggest challenges and megatrends

    BAUER Group Solutions for the biggest challenges and megatrends Urbanization & Infrastructure Construction Equipment  Leading position in special  Market leader in specialist foundation engineering. foundation equipment.  Global activities with presence  Focus on specialized and in over 50 count

  38. Slide 38: Diavik, Canada – Diaphragm wall for Diavik Diamond Mines

    Construction Diavik, Canada – Diaphragm wall for Diavik Diamond Mines 17-04-13 IR-Presentation_FY_2016 © BAUER AG, D-86529 Schrobenhausen 38

  39. Slide 39: Ismailia, Egypt – New road tunnel underneath Suez Canal

    Construction Ismailia, Egypt – New road tunnel underneath Suez Canal 17-04-13 IR-Presentation_FY_2016 © BAUER AG, D-86529 Schrobenhausen 39

  40. Slide 40: Dogern, Germany – Dike remediation with Mixed-in-Place

    Construction Dogern, Germany – Dike remediation with Mixed-in-Place © euroluftbild.de 17-04-13 IR-Presentation_FY_2016 © BAUER AG, D-86529 Schrobenhausen 40

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

    Equipment Product range: Drilling rigs (BG series) – ValueLine BG 20 BG 30 BG 38 ValueLine The BG ValueLine is a fully dedicated Kelly drilling rig. 17-04-13 IR-Presentation_FY_2016 © BAUER AG, D-86529 Schrobenhausen 41

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

    Equipment Product range: Drilling rigs (BG series) – PremiumLine BG 20 BG 42 BG 50 PremiumLine Multi-purpose drilling rigs for various applications of foundation works. 17-04-13 IR-Presentation_FY_2016 © BAUER AG, D-86529 Schrobenhausen 42

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

    Equipment Product range: Duty-cycle cranes (MC series) MC 64 MC 96 MC 128 17-04-13 IR-Presentation_FY_2016 © BAUER AG, D-86529 Schrobenhausen 43

  44. Slide 44: Product range: Deep Drilling

    Equipment Product range: Deep Drilling PR 440 Joint Venture of Bauer & Schlumberger In order to meet the upcoming market challenges, out-of-the-box thinking is necessary and therefore customized rig solutions are of growing importance. Based on more than 40 years of experience in engineering and man

  45. Slide 45: Resources Segment – Pool of competences from a single hand

    Resources Segment 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  De

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

    Resources Water – Process Water & Water Distribution Management 17-04-13 IR-Presentation_FY_2016 © BAUER AG, D-86529 Schrobenhausen 46

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

    Resources Environment – Remediation of Kesslergrube landfill, Germany © Source: Press picture Roche 17-04-13 IR-Presentation_FY_2016 © BAUER AG, D-86529 Schrobenhausen 47

  48. Slide 48: Market environment – Germany

    Market environment – Germany German construction market Germany 2016/ 2015/ 2016/ December 2016 2016 1995 2014 2015 Employees in 1000 781.4 -44.7 0.8 2.4 Revenues in EUR billion 107.3 -8.1 1.6 6.3 Building construction 69.2 -12.3 1.4 6.5 Foundation engineering 38.1 0.4 1.9 5.9 Orders received * in E

  49. Slide 49: BAUER share Facts & Figures

    BAUER share Facts & Figures Share performance (01/2016 – 04/2017)  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 2013 2014 2015 2016 2017 Earnings per share -0.

  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 All shareholders shall participate in

  51. Slide 51: Key Figures Time Line FY 2008 – FY 2016

    Key Figures Time Line FY 2008 – FY 2016 Total Group Revenues 2008 2009 2010 2011 2012 2013 Q1 14 Q2 14 Q3 14 Q4 14 2014 Q1 15 Q2 15 Q3 15 Q4 15 2015 Q1 16 Q2 16 Q3 16 Q4 16 2016 (in EUR million) BAUER Group 1,527.2 1,275.8 1,304.0 1,371.8 1,435.8 1,504.2 378.1 371.1 413.9 397.1 1,560.2 409.1 371.3 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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