BAUER Aktiengesellschaft · HAM:B5A0

BAUER Aktiengesellschaft — 9M 2019 Earnings Presentation

50 slides from BAUER Aktiengesellschaft's earnings presentation, Nov 14, 2019

  1. Slide 1: Group Presentation 9M/Q3 2019

    Group Presentation 9M/Q3 2019 November 14, 2019 Record depth of 111.4 m for boring piles in Germany – Hamburg

  2. Slide 2: Highlights 9M 2019 – BAUER Group

    Highlights 9M 2019 – BAUER Group Total Group revenues Sales revenues Order backlog Total assets EUR 1,239 million EUR 1,108 million EUR 1,062 million EUR 1,771 million (+0.3%) (-1.3%) (+8.5%) (+2.4%) EBIT Earnings after tax Net debt Equity ratio EUR 48.5 million EUR -0.4 million EUR 637 million 23.4

  3. Slide 3: Key Figures 9M 2019

    Key Figures 9M 2019 9M 2018 9M 2019 ∆ 9M in EUR million in EUR million in % Total Group revenues, of which 1,235.8 1,239.4 +0.3% - Germany 369.1 419.3 +13.6% - International 866.7 820.2 -5.4% - Construction 537.1 515.0 -4.1% - Equipment 554.7 558.9 +0.8% - Resources 189.1 204.9 +8.3% - Other/Consoli

  4. Slide 4: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials 9M/Q3 2019 & Guidance Appendix 19-11-14 IR-Presentation_Q3_2019 © BAUER AG, D-86529 Schrobenhausen 4

  5. Slide 5: BAUER Group Mission & Strategy

    BAUER Group Mission & Strategy Mission EUR 1.7 billion total Group revenues The BAUER Group is a leading provider of services, equipment & products dealing with ground and groundwater. EUR 100 million EBIT Strategy 6.3%  The world is our market. EBIT margin 26.5%  Global network organization with

  6. Slide 6: Longstanding healthy business development

    BAUER Group Longstanding healthy business development Total Group revenues Total 1,686 in EUR million (segment after deducting Other/Consolidation) 1,800 1,600 Resources 259 1,400 1,200 Equipment 1,000 672 800 Construction 600 Overseas 566 400 200 Construction Domestic 0 189 1980 1982 1984 1986 1988

  7. Slide 7: Longstanding healthy business development

    BAUER Group Longstanding healthy business development Total Group revenues in EUR million CAGR 4.6% 2,000 1,772 1,656 1,686 1,527 1,504 1,560 1,555 1,600 1,436 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 Sales revenues in EUR million C

  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 19-11-14 IR-Presentation_Q3_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 West European countries; slow development in Eastern Europe; USA / Canada + Market: good, but first signs of weakening; growth in Russia remains weak + Market: big need for infrastructure in

  10. Slide 10: Regional breakdown Total Group revenues 9M 2019 – Group

    Regional breakdown Total Group revenues 9M 2019 – Group Total 1,239 in EUR million Germany 419 (34 %) Africa 62 (5 %) Americas 126 (10 %) Full year 2018 Total 1,686 Germany 467 (28 %) in EUR million Africa 73 (4 %) Americas 171 (10 %) Asia-Pacific, Far East & Australia Europe (other) 428 (25 %) 59 (

  11. Slide 11: Regional breakdown Total Group revenues 9M 2019 – Segments

    Regional breakdown Total Group revenues 9M 2019 – Segments Construction segment Equipment segment Resources segment Total 503 Total 534 Total 202 in EUR million Germany 168 (33 %) Germany 110 (20 %) Germany 141 (70 %) Africa 9 (5 %) Africa 38 (8 %) Africa 15 (3 %) Americas 6 (3 %) Americas 24 (5 %)

  12. Slide 12: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials 9M/Q3 2019 & Guidance Appendix 19-11-14 IR-Presentation_Q3_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 ∆ 9M 1,250 1,772 1,686 1,062 1,555 1,668 +0.3% 1,008 978 1,014 979 1,589 1,600 1,397 1,000 -1.3% +8.5% 1,236 1,239 1,200 1,122 1,108 750 800 500 400 250 0 0 2

  14. Slide 14: Construction segment – Highlights 9M 2019

    Financials Construction segment – Highlights 9M 2019 Construction  Total Group revenues were down by 4.1% from EUR 537.1 million in the previous year to EUR 515.0 million. The decline is primarily attributable to the markets of the Far East and Australia, which were affected by a lack of orders and

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

    Financials Construction segment – Revenues and order development Construction Total Group revenues in EUR million -17.8% 250 227 231 211 221 210 193 197 199 193 195 201 200 178 177 187 183 176 178 171 185 177 176 170 172 173 153 156 151 150 100 50 0 Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1

  16. Slide 16: Equipment segment – Highlights 9M 2019

    Financials Equipment segment – Highlights 9M 2019 Equipment  Total Group revenues in the Equipment segment increased slightly by 0.8%, from EUR 554.7 million to EUR 558.9 million compared to the previous year, as did sales revenues from EUR 446.3 million to EUR 446.7 million.  EBIT decreased sligh

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

    Financials Equipment segment – Revenues and order development Equipment Sales revenues in EUR million -1.7% 250 205 197 186 194 200 171 181 180 174 180 169 143 137 129 144 142 150 125 128 123 127 129 125 115 108 115 104 103 100 100 50 0 Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/

  18. Slide 18: Resources segment – Highlights 9M 2019

    Financials Resources segment – Highlights 9M 2019 Resources  Total Group revenues increased significantly by 8.3% from EUR 189.1 million to EUR 204.9 million.  EBIT improved from EUR -7.8 million to EUR -2.5 million. The earnings figures include the positive non-operating contribution to earnings

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

    Financials Resources segment – Revenues and order development Resources Total Group revenues in EUR million -5.3% 100 92 80 75 71 72 67 66 68 70 69 70 66 63 65 65 60 57 60 55 53 53 54 55 52 48 48 44 39 42 40 20 0 Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Q3/18 Q1/19 Q3/19 Ord

  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  Net debt fell very sharply by 17.7% to EUR 561.9 672 665 677 605 604 646 629 608 million in the last two years. Inventories, finished 594 600 549

  22. Slide 22: Working capital & net debt lower at year-end than during year

    Financials Working capital & net debt are lower year-end than during the year Working capital in EUR million -5.9% 800 686 721 717 711 720 736 726 701 700 709 684 672 674 646 629 628 624 629 640 605 604 608 584 609 591 549 576 552 480 320 160 0 Q1/13 Q3/13 Q1/14 Q3/14 Q1/15 Q3/15 Q1/16 Q3/16 Q1/17 Q

  23. Slide 23: Income statement 9M 2019

    Financials Income statement 9M 2019 in EUR '000 9M 2018 9M 2019 ∆ in % Sales revenues (P&L) 1,122,222 1,107,665 -1.3% Consolidated revenues (P&L) 1,187,492 1,192,923 0.5% Cost of materials -612,751 -615,133 0.4% Personel expenses -287,991 -308,616 7.2% Other operation expenses -160,526 -148,196 -7.7

  24. Slide 24: Balance sheet September 30, 2019

    Financials Balance sheet September 30, 2019 in EUR '000 Sep 30, 2018 Sep 30, 2019 ∆ in % Assets 1,729,323 1,771,096 2.4% Non-current assets 638,411 672,312 5.3% Intangible assets 18,437 16,302 -11.6% Property, plant and equipment and investment property 410,368 445,123 8.5% Investments accounted for

  25. Slide 25: Cash flow statement 9M 2019

    Financials Cash flow statement 9M 2019 in EUR '000 9M 2018 9M 2019 ∆ in % Cash flow from operational activity -630 75,470 n/a Cash flow from investment activity -45,636 -46,509 1.9% Cash flow from financing activity 43,203 -29,888 n/a Free Cash Flow -46,266 28,961 n/a Changes in liquid funds affecti

  26. Slide 26: Forecast 2019 – Lower earnings due to project postponements

    Financials Forecast 2019 – Lower earnings due to project postponements 2018 final 2019 forecast Long-term goal Total Group Revenues 1,686 EUR million ~ 1,700 EUR million Revenue growth -4.9% 3-8% EBIT 100.1 EUR million ~ 70 EUR million EBIT margin 6.3% 7-9% Earnings after tax 24.1 EUR million slight

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

    Investor Relations Financial calendar & contact 2019 2020 April 15, 2019 Annual Report 2018 April 9, 2020 Annual Report 2019 Analyst & Press Conference Analyst & Press Conference May 14, 2019 Quarterly Statement Q1 2019 May 13, 2020 Quarterly Statement Q1 2020 June 27, 2019 Annual General Meeting Ju

  28. Slide 28: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials 9M/Q3 2019 & Guidance Appendix 19-11-14 IR-Presentation_Q3_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 · 2018 1790 1900-1970 1980-1990 2000-2018 End of 1970’s: Early 1980’s: FY 2018: 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 19-11-14 IR-Presentation_Q3_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 19-11-14 IR-Presentation_Q3_2019 © BAUER AG, D-8652

  36. Slide 36: Dusseldorf, Germany – Foundation works for UpperNord Tower

    Construction Dusseldorf, Germany – Foundation works for UpperNord Tower © Guido Anacker 19-11-14 IR-Presentation_Q3_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 19-11-14 IR-Presentation_Q3_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 19-11-14 IR-Presentation_Q3_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 19-11-14 IR-Presentation_Q3_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/ Jan-Aug August 2019 2018 2017 2019/2018 Employees (in 1,000) 463.7 4.9 5.1 Revenues 85.2 10.8 10.3 Building construction 47.2 9.5 9.3 Foundation engineering 38.0 12.5 11.6 Orders received * in EUR billion 79.5

  45. Slide 45: Global economic situation

    Global economic situation IMF projection of the real annual GDP growth in % 1.9 1.2 1.1 0.5 2019 2020 2019 2020 2.4 2.1 1,2 1,4 Russia Germany 2019 2020 2019 2020 6.1 5.8 Europe United States 2.9 5.9 6.0 0.9 2019 2020 2019 2020 3.2 3.6 China 1.8 Middle East & 2019 2020 0.2 North Africa Developing As

  46. Slide 46: 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

  47. Slide 47: BAUER share – Facts & Figures

    BAUER share Facts & Figures Shareholder structure Share performance (01/2019 – 11/2019) 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 ---  Share capital EUR 73,

  48. Slide 48: 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

  49. Slide 49: Key Figures Time Line FY 2008 – Q3 2019

    Key Figures Time Line FY 2008 – Q3 2019 Total Group revenues 2008 2009 2010 2011 2012 2013 2014 2015 Q1 16 Q2 16 Q3 16 Q4 16 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 (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 3

  50. Slide 50: 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

BAUER Aktiengesellschaft — 9M 2019 Earnings Presentation on 6ix