BAUER Aktiengesellschaft · HAM:B5A0

BAUER Aktiengesellschaft — 9M 2020 Earnings Presentation

48 slides from BAUER Aktiengesellschaft's earnings presentation, Nov 13, 2020

  1. Slide 1: Group Presentation 9M/Q3 2020

    Investor Relations Group Presentation 9M/Q3 2020 BAUER AG November 13, 2020

  2. Slide 2: Highlights 9M 2020

    Highlights 9M 2020 Total Group revenues Sales revenues EBITDA EBIT Earnings after tax EUR 1,098 million EUR 991 million EUR 98.4 million EUR 21.6 million EUR -13.2 million (-11.4%) (-10.6%) (-18.7%) (-55.5%) (9M 19: EUR -0.4 million) Order intake Order backlog Total assets Net debt Equity ratio EUR

  3. Slide 3: Key Figures 9M 2020

    Key Figures 9M 2020 in EUR million 9M 2019 9M 2020 ∆ 9M in % Total Group revenues 1,239.4 1,098.2 -11.4% Construction* 515.0 484.3 -0.1% Equipment 558.9 456.1 -18.4% Resources* 204.9 208.4 -11.5% Other/Consolidation -39.4 -50.6 n/a Sales revenues 1,107.7 990.8 -10.6% Order intake 1,288.1 1,270.2 -1.

  4. Slide 4: BAUER Group Mission & Strategy

    BAUER Group Mission & Strategy Mission EUR 1.6 billion The BAUER Group is a leading provider of services, equipment & products dealing with total Group revenues ground and groundwater. EUR 22.5 million EBIT Strategy 11,684 employees 1.5%  The world is our market. EBIT margin  Global network organi

  5. Slide 5: Longstanding healthy business development

    BAUER Group Longstanding healthy business development Total Group revenues Total 1,595 in EUR million (segment after deducting Other/Consolidation) 1,800 1,600 Resources 269 1,400 1,200 Equipment 1,000 673 800 600 Construction Overseas 433 400 200 Construction Domestic 220 0 1980 1984 1988 1992 1996

  6. Slide 6: Longstanding healthy business development

    BAUER Group Longstanding healthy business development Total Group revenues in EUR million 2,000 1,772 1,656 1,686 1,595 1,527 1,504 1,560 1,555 1,600 1,372 1,436 1,208 1,278 1,304 1,200 980 800 400 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sales revenues in EUR million

  7. Slide 7: Worldwide network

    Worldwide network More than 110 subsidiaries in about 70 countries Permanent Offices: Construction Equipment sales Resources Equipment production Conroe Schrobenhausen Tianjin Kuala Lumpur 7

  8. Slide 8: Construction market environment vs. order backlog

    BAUER Group Construction market environment vs. order backlog Europe USA / Canada Germany o Market: Western European countries affected by o Market: significantly affected o Market: still a good market, coronavirus; slow development by the coronavirus; strong first signs of weakening; in Eastern Eur

  9. Slide 9: Total Group revenues 9M 2020 – Group regional breakdown

    Regional breakdown Total Group revenues 9M 2020 – Group Total 1,098 in EUR million Germany 332 (30%) Africa 52 (5%) Americas 187 (17%) Full year 2019 Total 1,595 Africa 80 (5%) in EUR million Americas 192 Germany (12%) 519 (33%) Asia-Pacific, Far East & Australia 266 (17%) Middle East & Asia-Pacific

  10. Slide 10: Total Group revenues 9M 2020 – Segments

    Regional breakdown Total Group revenues 9M 2020 – Segments Construction segment Equipment segment Resources segment Total 475* Total 417 Total 206* in Mio. EUR Germany 107 (22%) Germany 71 (17%) Germany 154 (75%) Africa 40 (8%) Africa 5 (1%) Africa 7 (3%) Americas 5 (2%) Americas 112 (27%) Asia-Paci

  11. Slide 11: Revenues, earnings & order development – Group

    Financials Revenues, earnings & order development – Group Revenues Earnings in EUR million Total Group revenues Sales revenues in EUR million EBIT Earnings after tax 2,000 1,772 ∆ 9M 125 ∆ 9M 1,668 1,686 1,589 1,595 89.6 100.1 1,600 1,471 -11.4% 100 -55.5% 1,239 -10.6% 75 n/a 1,200 1,108 1,098 991 5

  12. Slide 12: Construction segment – 9M 2020

    Financials Construction segment – 9M 2020 Highlights Mission  The earnings figures reflect the effects of the coronavirus pandemic as well as the  Global provider for specialist negative market valuation of interest rate hedging transactions. A positive earnings foundation engineering services con

  13. Slide 13: Construction segment – Revenue and order development

    Financials Construction segment – Revenue and order development Total Group revenues in EUR million 250 201 211 221 227 210 231 193 195 200 178 177 187 183 176 178 171 185 177 176 170 184 177 156 151 153 162 163 144 150 100 50 0 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19

  14. Slide 14: Equipment segment – 9M 2020

    Financials Equipment segment – 9M 2020 Highlights Mission  The segment is currently most significantly affected by the customers’ reluctance to  Market leader in specialist foundation invest, resulting from the uncertainty caused by the coronavirus pandemic. While the equipment impact was still sm

  15. Slide 15: Equipment segment – Revenue and order development

    Financials Equipment segment – Revenue and order development Sales revenues in EUR million 250 197 186 194 200 171 181 169 180 174 180 164 143 137 129 144 142 150 127 129 125 129 103 115 108 115 123 110 113 100 100 50 0 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19 Q1/20 Q3

  16. Slide 16: Resources segment – 9M 2020

    Financials Resources segment – 9M 2020 Highlights Mission  In the first nine month, the segment only experienced minimal effects of the coronavirus  Products & services related to water, pandemic. However, in the following months, the impact of the pandemic has become environment and natural resou

  17. Slide 17: Resources segment – Revenue and order development

    Financials Resources segment – Revenue and order development Total Group revenues in EUR million 100 92 89 75 72 77 80 71 67 68 70 69 71 72 66 63 65 65 66 60 57 55 60 53 54 52 48 48 44 40 40 20 0 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19 Q1/20 Q3/20 Order backlog in EUR

  18. Slide 18: 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 In

  19. Slide 19: Working capital & net debt – Current development

    Financials Working capital & net debt – Current development Working capital vs. net debt Current development in EUR million Working capital Net debt  Net debt decreased by EUR 15.2 million to EUR 621.3 million 750 677  Inventories decreased by 4.8% to EUR 471.3 million compared to 629 665 608 594

  20. Slide 20: 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 800 711 720 736 726 701 700 672 709 684 674 646 604 629 608 628 624 629 609 591 640 549 576 552 584 537 533 512 467 480 320 160 0 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q

  21. Slide 21: Income statement 9M 2020

    Financials Income statement 9M 2020 in EUR '000 9M 2019 9M 2020 ∆ in % Sales revenues (P&L) 1,107,665 990,824 -10.5% Consolidated revenues (P&L) 1,192,923 1,060,122 -11.1% Cost of materials -615,133 -501,231 -18.5% Personel expenses -308,616 -295,819 -4.1% Other operation expenses -148,196 -164,701

  22. Slide 22: Balance sheet as of September 30, 2020

    Financials Balance sheet as of September 30, 2020 in EUR '000 Sep. 30, 2019 Sep. 30, 2020 ∆ in % Assets 1,771,096 1,646,885 -7.0% Non-current assets 672,312 668,713 -0.5% Intangible assets 16,302 21,495 31.9% Property, plant and equipment and investment property 445,123 470,436 5.7% Investments acco

  23. Slide 23: Cash flow statement 9M 2020

    Financials Cash flow statement 9M 2020 in EUR '000 9M 2019* 9M 2020 ∆ in % Cash flow from operational activity 46,809 30,840 -34.1% Cash flow from investment activity -46,509 -64,176 38.0% Cash flow from financing activity -1,227 50,456 n/a Free Cash Flow 300 -33,336 n/a Changes in liquid funds affe

  24. Slide 24: Forecast 2020 – New guidance published on November 3

    Financials Forecast 2020 – New guidance published on November 3 in EUR million 2019 final 2020 forecast Long-term goal Total Group revenues 1,595 ~ 1,500 Revenue growth 3 - 8% EBIT 22.5 about previous year's level EBIT margin 7 - 9% negative, but significantly better than Earnings after tax -36.6 20

  25. Slide 25: Financial calendar & contact

    Investor Relations Financial calendar & contact Financial Calendar 2020 IR contact April 9, 2020 Annual Report 2019 Christopher Wolf Analyst & Press Conference Head of Investor Relations May 13, 2020 Quarterly Statement Q1 2020 June 25, 2020 Annual General Meeting BAUER Aktiengesellschaft BAUER-Stra

  26. Slide 26: Appendix

    BAUER Appendix

  27. Slide 27: The history – Over two centuries of experience

    BAUER Group The history – Over two centuries of experience Dipl.-Ing. Dr.-Ing. Prof. Dr. Dipl.-Kfm. Karl Bauer Karlheinz Bauer Thomas Bauer 1790 - 1956 1958 - 1990 1992 - 2008 2009 - 2019  1790 Sebastian Bauer acquires a  1958 Invention of the injection anchor on the  1992 Takeover of SCHACHTBAU

  28. Slide 28: BAUER AG Management Board

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

  29. Slide 29: The three segments

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

  30. Slide 30: 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 demands new and The megatrend of urbanization requires construction To deal with the scarcity of drinking water, purification renewed transport routes solutions fo

  31. Slide 31: Construction segment Overview

    Construction segment Overview 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 on the

  32. Slide 32: What is specialist foundation? Building an excavation pit

    What is specialist foundation? Building an excavation pit Mixed-In-Place Method Diaphragm and Cut-off Wall Piling Retaining Ground Anchor Wall Permeation Grouting Pile Foundation 32

  33. Slide 33: What is specialist foundation used for? Applications

    What is specialist foundation used for? Applications Excavation Pits Cut-off-Walls Foundations Soil Improvement ... for every problem and requirement … as solution for dams and dikes …for the highest buildings in the world … allows projects on weak ground 33

  34. Slide 34: Construction segment Arab Potash, Dead Sea, Jordan

    Construction segment Arab Potash, Dead Sea, Jordan 34

  35. Slide 35: Construction segment Operaparken, Copenhagen, Denmark

    Construction segment Operaparken, Copenhagen, Denmark 35

  36. Slide 36: Equipment segment Overview

    Equipment segment Overview 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 Market environment  Growing construction markets wor

  37. Slide 37: Equipment segment Whole range of products

    Equipment segment Whole range of products for special foundation engineering 37

  38. Slide 38: Resources segment Overview

    Resources segment Overview 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 environment 

  39. Slide 39: Resources segment The three business fields

    Resources segment The three business fields Drilling Services & Water Wells Environmental Services Constructed Wetlands  Drilling Services  Remediation  Produced Water  Exploration Drilling  Brownfield Remediation  Industrial Waste Water  Water Well Drilling  Groundwater Treatment  Sewage a

  40. Slide 40: Soil remediation on historic Diamalt area, Munich

    Resources segment Soil remediation on historic Diamalt area, Munich, Germany 40

  41. Slide 41: World's largest reed bed treatment plant, Nimr, Oman

    Resources segment World's largest reed bed treatment plant, Nimr, Oman 41

  42. Slide 42: Market environment German construction market

    Market environment German construction market in EUR billion in % Germany 2019/ Jan-Aug August 2020 2019 2018 2020 Employees (in 1,000) 486.7 4.9 3.9 Revenues 92.2 8.2 5.5 Building construction 50.8 7.7 4.3 Foundation engineering 41.4 8.8 7.0 Orders received * in EUR billion 86.1 8.2 -0.5 Housebuild

  43. Slide 43: 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  Construction contracts with short duration need  Construction contracts with long durations  No advance payments, no

  44. Slide 44: BAUER share Facts & Figures

    BAUER share Facts & Figures Shareholder structure Share performance since IPO (in EUR) Bauer family 48.19 % 51.81 % Free float  Listed on Frankfurt stock exchange (Prime Standard), since July 4, 2006  Share capital EUR 73,001,420.45 in EUR 2016 2017 2018 2019 2020  Shares issued 17,131,000  Issu

  45. Slide 45: BAUER share Dividend policy

    BAUER share Dividend policy Dividend policy Dividend payment  The dividend policy founded on a reasonable balance between in EUR shareholders and company 1.20  fair participation of shareholders 1.00 1.00  maintaining continuity 0.90  safeguarding of the equity ratio 0.60 0.60 0.60 0.50 0.50  A

  46. Slide 46: Key Figures Time Line FY 2018 – Q3 2020

    Key Figures Time Line FY 2018 – Q3 2020 Total Group revenues in EUR million 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019 Q1 20 Q2 20 Q3 20 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.

  47. Slide 47: 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

  48. Slide 48: © 2020 BAUER AG. All rights reserved.

    © 2020 BAUER AG. All rights reserved.

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