BAUER Aktiengesellschaft · HAM:B5A0

BAUER Aktiengesellschaft — FY2019 Earnings Presentation

49 slides from BAUER Aktiengesellschaft's earnings presentation, Apr 9, 2020

  1. Slide 1: Group Presentation FY/Q4 2019

    Group Presentation FY/Q4 2019 April 9, 2020 Foundation works for “QH Track” project – Berlin, Germany

  2. Slide 2: Highlights FY 2019 – BAUER Group

    Highlights FY 2019 – BAUER Group Total Group revenues Sales revenues Order backlog Total assets EUR 1,595 million EUR 1,471 million EUR 1,028 million EUR 1,629 million (-5.4%) (-7.4%) (+1.4%) (-0.2%) EBIT Earnings after tax Net debt Equity ratio EUR 22.5 million EUR -36.6 million EUR 564 million 23.

  3. Slide 3: Key Figures FY 2019

    Key Figures FY 2019 FY 2018 FY 2019 ∆ FY in EUR million in EUR million in % Total Group revenues, of which 1,686.1 1,594.7 -5.4% - Germany 467.1 518.7 +11.1% - International 1,219.0 1,076.0 -11.7% - Construction 767.6 668.8 -12.9% - Equipment 723.1 713.6 -1.3% - Resources 261.5 274.9 +5.1% - Other/C

  4. Slide 4: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials FY/Q4 2019 & Guidance Appendix 20-04-09 IR-Presentation_FY_2019 © 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 22.5 million EBIT Strategy 1.5%  The world is our market. EBIT margin 23.8%  Global network organization with

  6. Slide 6: 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 Construction 600 Overseas 433 400 200 Construction Domestic 0 220 1980 1984 1988 1992 1996

  7. Slide 7: Longstanding healthy business development

    BAUER Group Longstanding healthy business development Total Group revenues in EUR million CAGR 3.8% 2,000 1,772 1,656 1,686 1,527 1,560 1,555 1,595 1,600 1,436 1,504 1,304 1,372 1,208 1,278 1,200 980 800 400 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Sales revenues in EU

  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 20-04-09 IR-Presentation_FY_2019 © BAUER AG, D-86529 Schrobenhausen 8

  9. Slide 9: Construction market environment vs. order backlog

    BAUER Group Construction market environment vs. order backlog Europe Germany + Market: stable markets in most Western European countries; slow development in Eastern Europe; USA / Canada + Market: good, first signs of Russia remains weak + Market: weakening; growth in the infrastructure market in th

  10. Slide 10: Regional breakdown

    Regional breakdown Total Group revenues FY 2019 – Group Total 1,595 in EUR million Germany 519 (33%) Africa 80 (5%) Americas 192 (12%) Full year 2018 Total 1,686 Germany 467 (28%) in EUR million Africa 73 (4%) Americas 171 (10%) Asia-Pacific, Far East & Australia 428 (25%) Europe (other) Asia-Pacifi

  11. Slide 11: Regional breakdown – Segments

    Regional breakdown Total Group revenues FY 2019 – Segments Construction segment Equipment segment Resources segment Total 653 Total 673 Total 269 in EUR million Germany 220 (34%) Germany 111 (16%) Germany 188 (70%) Africa 50 (8%) Africa 18 (3%) Africa 12 (4%) Americas 47 (7%) Americas 138 (20%) Amer

  12. Slide 12: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials FY/Q4 2019 & Guidance Appendix 20-04-09 IR-Presentation_FY_2019 © BAUER AG, D-86529 Schrobenhausen 12

  13. Slide 13: 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 1,250 1,772 1,686 1,555 1,668 1,589 1,595 -5.4% 1,008 978 1,014 +1.4% 1,028 1,600 1,397 1,471 1,000 -7.4% 1,200 750 800 500 400 250 0 0 2016 2017 2018 20

  14. Slide 14: Construction segment – Highlights FY 2019

    Financials Construction segment – Highlights FY 2019 Construction  Total Group revenues fell by 12.9% to EUR 668.8 million compared to EUR 767.6 million. At EUR -19.9 million, EBIT was markedly negative (2018: EUR 39.1 million). At EUR -52.7 million, earnings after taxes were negative. In 2018, pos

  15. Slide 15: Construction segment – Revenues and order development

    Financials Construction segment – Revenues and order development Construction Total Group revenues in EUR million -33.3% 250 221 227 231 211 210 193 195 201 200 178 177 187 183 178 185 177 176 171 176 170 172 173 156 151 154 150 100 50 0 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1

  16. Slide 16: Equipment segment – Highlights FY 2019

    Financials Equipment segment – Highlights FY 2019 Equipment  Total Group revenues fell slightly by 1.3% from EUR 723.1 million to EUR 713.6 million. Sales revenues also dropped by 4.7%, from EUR 640.1 million to EUR 610.2 million. Accordingly, EBIT decreased from EUR 74.9 million to EUR 61.2 millio

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

    Financials Equipment segment – Revenues and order development Equipment Sales revenues in EUR million -15.6% 250 197 194 200 181 186 180 180 171 169 174 164 143 137 144 142 150 129 123 127 129 125 115 108 115 103 100 100 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 Or

  18. Slide 18: Resources segment – Highlights FY 2019

    Financials Resources segment – Highlights FY 2019 Resources  Total Group revenues increased by 5.1%, from EUR 261.5 million in the previous year to EUR 274.9 million. EBIT decreased from EUR -11.0 million to EUR -16.2 million, and earnings after taxes were up from EUR -16.0 million in the previous

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

    Financials Resources segment – Revenues and order development Resources Total Group revenues in EUR million -3.2% 100 92 80 75 71 72 67 66 68 70 69 70 66 70 63 65 65 60 57 60 53 54 55 52 48 48 44 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 Order backlog in EUR mil

  20. Slide 20: 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 

  21. Slide 21: Working capital & net debt – Current development

    Financials Working capital & net debt – Current development Working capital / net debt in EUR million Current development: Working capital Net debt 750  At EUR 563.7 million net debt was at the same level 665 677 629 608 as 2018. This was essentially due to the new IFRS 16 594 600 549 552 562 564 s

  22. Slide 22: Working capital & net debt 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 -15.4% 800 720 736 726 711 701 700 709 684 672 674 646 604 629 608 628 624 629 609 640 576 584 591 549 552 467 480 320 160 0 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19

  23. Slide 23: Income statement 12M 2019

    Financials Income statement 12M 2019 in EUR '000 12M 2018 12M 2019 ∆ in % Sales revenues (P&L) 1,589,091 1,470,922 -7.4% Consolidated revenues (P&L) 1,616,936 1,537,691 -4.9% Cost of materials -821,496 -783,126 -4.7% Personel expenses -392,384 -418,805 6.7% Other operation expenses -204,440 -212,713

  24. Slide 24: Balance sheet December 31, 2019

    Financials Balance sheet December 31, 2019 in EUR '000 Dec 31, 2018 Dec 31, 2019 ∆ in % Assets 1,632,284 1,628,549 -0.2% Non-current assets 621,041 692,778 11.6% Intangible assets 18,077 16,946 -6.3% Property, plant and equipment and investment property 411,571 460,470 11.9% Investments accounted fo

  25. Slide 25: Cash flow statement 12M 2019

    Financials Cash flow statement 12M 2019 in EUR '000 12M 2018 12M 2019 ∆ in % Cash flow from operational activity 147,444 168,882 14.5% Cash flow from investment activity -57,600 -75,213 30.6% Cash flow from financing activity -75,088 -120,339 60.3% Free Cash Flow 89,844 93,669 4.3% Changes in liquid

  26. Slide 26: Forecast 2020 – More cautious view due to coronavirus

    Financials Forecast 2020 – More cautious view due to coronavirus pandemic 2019 final 2020 forecast Long-term goal Total Group Revenues 1,594 EUR million slight increase Revenue growth -5.4% 3-8% EBIT 22.5 EUR million significant increase EBIT margin 1.5% 7-9% significant increase in the Earnings aft

  27. Slide 27: Investor Relations – Financial calendar & contact

    Investor Relations Financial calendar & contact 2020 April 9, 2020 Annual Report 2019 Analyst & Press Conference May 13, 2020 Quarterly Statement Q1 2020 June 25, 2020 Annual General Meeting August 13, 2020 Half-Year Interim Report to June 30, 2020 November 13, 2020 Quarterly Statement 9M/Q3 2020 Ch

  28. Slide 28: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials FY/Q4 2019 & Guidance Appendix 20-04-09 IR-Presentation_FY_2019 © BAUER AG, D-86529 Schrobenhausen 28

  29. Slide 29: 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 · 2019 1790 1900-1970 1980-1990 2000-2019 End of 1970’s: Early 1980’s: FY 2019: Start of Selling of equipment to 4. Jul 20

  30. Slide 30: Management Board

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

  31. Slide 31: 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

  32. Slide 32: 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 The megatrend of urbanization requires To deal with the scarcity of drinking demands new and renewed transport construction solutions for the city of water, purifi

  33. Slide 33: Construction – Key facts

    Construction Key facts Construction 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 o

  34. Slide 34: 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 20-04-09 IR-Presentation_FY_2019 © BAUER AG, D-86529 Schrobenhausen 34

  35. Slide 35: What is specialist foundation used for?

    What is specialist foundation used for? Applications Excavation Pits Cut-off Walls Foundations Ground Improvement for every problem and requirement as solution for dams and dikes for the highest buildings in the world allows projects on weak ground 20-04-09 IR-Presentation_FY_2019 © BAUER AG, D-8652

  36. Slide 36: Construction – Foundation works for a boarding house, Munich

    Construction Munich, Germany – Foundation works for a boarding house 20-04-09 IR-Presentation_FY_2019 © BAUER AG, D-86529 Schrobenhausen 36

  37. Slide 37: Equipment – Key facts

    Equipment Key facts Equipment 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  JV with Schlumberger for the production of deep

  38. Slide 38: Whole range of products for special foundation engineering

    Equipment Whole range of products for special foundation engineering 20-04-09 IR-Presentation_FY_2019 © BAUER AG, D-86529 Schrobenhausen 38

  39. Slide 39: 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

  40. Slide 40: Resources – Key facts

    Resources Key facts Resources 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 environmen

  41. Slide 41: 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

  42. Slide 42: Water – Process Water & Water Distribution Management

    Resources Water – Process Water & Water Distribution Management 20-04-09 IR-Presentation_FY_2019 © BAUER AG, D-86529 Schrobenhausen 42

  43. Slide 43: Environment – World's biggest reed bed treatment plant, Oman

    Resources Environment – World’s biggest reed bed treatment plant, Oman 20-04-09 IR-Presentation_FY_2019 © BAUER AG, D-86529 Schrobenhausen 43

  44. Slide 44: Market environment – Germany

    Market environment – Germany German construction market in EUR billion in % Germany 2018/ 2019/ Dezember 2019 2019 2017 2018 Employees (in 1,000) 486.7 4.9 4.9 Revenues 92.2 10.8 8.2 Building construction 50.8 9.5 7.7 Foundation engineering 41.4 12.5 8.8 Orders received * in EUR billion 86.1 10.0 8.

  45. Slide 45: 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 EUR EUR Contract value Contract value Negative cash Negative cash contribution contribution Positive cash contribution 12 24

  46. Slide 46: BAUER share – Facts & Figures

    BAUER share Facts & Figures Shareholder structure Share performance (01/2019 – 03/2020) Free float Bauer family 51.81 % 48.19 %  Listed on Frankfurt stock exchange (Prime Standard), in EUR 2015 2016 2017 2018 2019 since July 4, 2006 Earnings per share 1.73 0.66 0.16 1.32 -2.17  Share capital EUR 7

  47. Slide 47: BAUER share – Dividend policy

    BAUER share Dividend policy Dividend payment Dividend policy founded on a reasonable balance between shareholders and company in EUR per share 1.20  fair participation of shareholders  maintaining continuity 1.00 1.00  safeguarding of the equity ratio 0.90 All shareholders shall participate in th

  48. Slide 48: Key Figures Time Line FY 2008 – FY 2019

    Key Figures Time Line FY 2008 – FY 2019 Total Group revenues 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 (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 1,656.4 1,554.7 448.2

  49. Slide 49: 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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