BAUER Aktiengesellschaft · HAM:B5A0

BAUER Aktiengesellschaft — Bauer — Q1 2017 Earnings Presentation

51 slides from BAUER Aktiengesellschaft's earnings presentation, May 15, 2017

  1. Slide 1: BAUER AG Group Presentation Q1 2017

    BAUER AG Group Presentation Q1 2017 In-house exhibition 2017, Schrobenhausen/Germany 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen

  2. Slide 2: Key Figures Q1 2017

    Key Figures Q1 2017 Q1 2016 Q1 2017 ∆ Q1 in EUR million in EUR million in % Total Group revenues, of which 383.2 455.7 +18.9 % - Germany 137.2 128.2 -6.5 % - International 246.0 327.5 +33.1 % - Construction 159.9 213.4 +33.5 % - Equipment 165.0 191.6 +16.2 % - Resources 71.5 63.4 -11.4 % - Other/Con

  3. Slide 3: Highlights Q1 2017 – BAUER Group

    Highlights Q1 2017 – BAUER Group  The BAUER Group recorded a very good start into the 2017 financial year, especially because of the positive development of the Construction and Equipment segments.  Total Group revenues increased by 18.9 % to EUR 455.7 million (2016: EUR 383.2 million) and sales r

  4. Slide 4: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials Q1 2017 & Guidance Appendix 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen 4

  5. Slide 5: BAUER Group 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

  6. Slide 6: 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

  7. Slide 7: 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 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen 7

  8. Slide 8: 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

  9. Slide 9: 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

  10. Slide 10: Global economic situation

    Global economic situation IMF projection of the real annual GDP growth in % 1.6 1.5 1.4 1.4 1.7 2.1 2017 2018 1.7 1.6 2017 2018 2.3 2.5 Russia Germany 2017 2018 2017 2018 CIS* 2017 2018 Europe 6.6 6.2 United States 3.4 6.4 6.4 2.6 1.7 0.2 2017 2018 2017 2018 3.5 China 2017 2018 2.6 Middle East & 201

  11. Slide 11: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials Q1 2017 & Guidance Appendix 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen 11

  12. Slide 12: 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 1.586 1.044 ∆ Q1 996 1.008 1.001 1.376 1.379 1.397 +18.9 % +4.3 % 1.350 900 +19.3 % 763 900 600 456 379 450 383 300 318 0 0 2014 2015 2016 Q

  13. Slide 13: Construction segment – Highlights Q1 2017

    BAUER Group Construction segment – Highlights Q1 2017 Construction  The segment has an exceptionally good start into the year as nearly all projects started without delays. Therefore, total Group revenues increased by 33.5 % to EUR 213.4 million.  EBIT decreased slightly from EUR 1.0 million to EU

  14. Slide 14: Construction segment – Revenues and order development

    BAUER Group Construction segment – Revenues and order development Construction Total Group revenues in EUR million +33.5 % 250 206 213 193 197 199 193 195 200 178 177 187 183 176 178 184 172 153 160 150 100 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 Q3/1

  15. Slide 15: Equipment segment – Highlights Q1 2017

    BAUER Group Equipment segment – Highlights Q1 2017 Equipment  The segment recorded a very good first quarter, due to a generally more positive development of the global construction machinery markets and the delivery of several large-scale equipment.  Total Group revenues increased by 16.2 % from

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

    BAUER Group Equipment segment – Revenues and order development Equipment Sales revenues in EUR million +17.5 % 250 205 197 200 171 181 143 137 150 125 128 129 123 127 115 108 115 104 103 100 100 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 Q4/16 Q1/1

  17. Slide 17: 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 2016 of 31%. 162 157 150 135 13

  18. Slide 18: Resources segment – Highlights Q1 2017

    BAUER Group Resources segment – Highlights Q1 2017 Resources  Total Group revenues decreased by 11.4 % from EUR 71.5 million to EUR 63.4 million. The figure has only little significance in the first quarter. A recovery will be seen in the course of the year.  EBIT was already better than in the pr

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

    BAUER Group Resources segment – Revenues and order development Resources Total Group revenues in EUR million -11.4 % 100 92 80 75 72 67 66 63 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 Q1/17 Order backlo

  20. Slide 20: 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 %)

  21. Slide 21: 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

  22. Slide 22: Working capital & net debt – typical cycle during the year

    Financials Working capital & net debt – typical cycle during the year Working capital in EUR million +0.3 % 750 686 721 717 711 720 736 726 701 700 709 684 672 674 605 604 629 608 600 450 300 150 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 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 other 750 677 companies in construction markets. 672 646 665 626 645

  24. Slide 24: 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

  25. Slide 25: Income statement 3M 2017

    Financials Income statement 3M 2017 in EUR '000 3M 2016 3M 2017 ∆ in % Sales revenues (P&L) 317,641 379,042 19.3% Consolidated revenues (P&L) 365,514 418,734 14.6% Cost of materials -172,074 -225,639 31.1% Personel expenses -90,644 -94,422 4.2% Other operation expenses -75,444 -68,166 -9.6% EBITDA 2

  26. Slide 26: Balance sheet March 31, 2017

    Financials Balance sheet March 31, 2017 in EUR '000 March 31, 2016 March 31, 2017 ∆ in % Assets 1,700,719 1,787,920 5.1% A. Non-current assets 628,536 633,364 0.8% I. Intangible assets 26,479 24,484 -7.5% II. Property, plant and equipment and investment property 411,320 402,205 -2.2% III. Investment

  27. Slide 27: Cash flow statement 3M 2017

    Financials Cash flow statement 3M 2017 in EUR '000 3M 2016 3M 2017 ∆ in % Cash flow from operational activity -41,703 -38,557 n/a Cash flow from investment activity -26,176 -6,967 n/a Cash flow from financing activity 87,583 57,995 -33.8% Free Cash Flow -67,879 -45,524 n/a Changes in liquid funds af

  28. Slide 28: 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

  29. Slide 29: 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

  30. Slide 30: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials Q1 2017 & Guidance Appendix 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen 30

  31. Slide 31: 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

  32. Slide 32: 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

  33. Slide 33: What is specialist foundation?

    What is specialist foundation? Building an excavation pit Supporting Wall Ground Water Underpinning Injection Injection Anchor Pile Foundation Sealing Slab 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen 33

  34. Slide 34: 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 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen 34

  35. Slide 35: 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

  36. Slide 36: 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

  37. Slide 37: Construction – Diavik, Canada

    Construction Diavik, Canada – Diaphragm wall for Diavik Diamond Mines 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen 37

  38. Slide 38: Construction – Sydney, Australia

    Construction Sydney, Australia – Foundation works for new hotel complex 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen 38

  39. Slide 39: Construction – Dogern, Germany

    Construction Dogern, Germany – Dike remediation with Mixed-in-Place © euroluftbild.de 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen 39

  40. Slide 40: 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. 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen 40

  41. Slide 41: 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. 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen 41

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

    Equipment Product range: Duty-cycle cranes (MC series) MC 64 MC 96 MC 128 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen 42

  43. Slide 43: 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

  44. Slide 44: Resources Segment – Pool of competences

    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

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

    Resources Water – Process Water & Water Distribution Management 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen 45

  46. Slide 46: Environment – Remediation of Kesslergrube landfill

    Resources Environment – Remediation of Kesslergrube landfill, Germany © Source: Press picture Roche 17-05-15 IR-Presentation_Q1_2017 © BAUER AG, D-86529 Schrobenhausen 46

  47. Slide 47: German construction market

    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

  48. Slide 48: BAUER share Facts & Figures

    BAUER share Facts & Figures Share performance (05/2016 – 05/2017)  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.

  49. Slide 49: 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

  50. Slide 50: Key Figures Time Line FY 2008 – Q1 2017

    Key Figures Time Line FY 2008 – Q1 2017 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 Q1 17 (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 3

  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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