BAUER Aktiengesellschaft · HAM:B5A0

BAUER Aktiengesellschaft — Bauer — 9M 2017 Earnings Presentation

53 slides from BAUER Aktiengesellschaft's earnings presentation, Nov 14, 2017

  1. Slide 1: BAUER AG Group Presentation 9M/Q3 2017

    BAUER AG Group Presentation 9M/Q3 2017 Successful completion: cut-off wall for a diamond mine, Diavik/Canada 17-11-14 IR-Presentation_Q3_2017 © BAUER AG, D-86529 Schrobenhausen

  2. Slide 2: Key Figures 9M 2017

    Key Figures 9M 2017 9M 2016 9M 2017 ∆ 9M in EUR million in EUR million in % Total Group revenues, of which 1,146.3 1,398.1 +22.0% - Germany 384.5 382.8 -0.4% - International 761.8 1,015.3 +33.3% - Construction 516.4 666.5 +29.1% - Equipment 465.7 579.0 +24.3% - Resources 205.4 193.5 -5.8% - Other/Co

  3. Slide 3: Highlights 9M 2017 – BAUER Group

    Highlights 9M 2017 – BAUER Group  The BAUER Group recorded an increase in revenues after the third quarter 2017 compared to the previous year, which is mainly due to Construction and Equipment.  Total Group revenues increased by 22.0% to EUR 1,398.1 million (2016: EUR 1,146.3 million) and sales re

  4. Slide 4: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials 9M/Q3 2017 & Guidance Appendix 17-11-14 IR-Presentation_Q3_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 with

  6. Slide 6: Longstanding healthy business development

    BAUER Group Longstanding healthy business development Total Group revenues Total 1,586 in EUR million (segment after deducting Other/Consolidation) 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

  7. Slide 7: Longstanding healthy business development

    BAUER Group Longstanding healthy business development Total Group revenues in EUR million CAGR 4.9% 1.800 1.656 1.527 1.560 1.586 1.436 1.504 1.500 1.304 1.372 1.278 1.208 1.200 980 900 600 300 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Sales revenues in EUR million CAGR 5.3% 1.800 1.5

  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 17-11-14 IR-Presentation_Q3_2017 © BAUER AG, D-86529 Schrobenhausen 8

  9. Slide 9: 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

  10. Slide 10: World construction markets

    World construction markets Bauer market potential Germany: very good; + Russia: - infrastructure Eastern Europe: slow positive o still remains weak USA / Canada: + budget raised development big need for infrastructure investments; reluctance Western Europe: recovery in most o in USA markets Central

  11. Slide 11: Global economic situation

    Global economic situation IMF projection of the real annual GDP growth in % 2.0 1.8 1.8 1.6 2.1 2.1 2017 2018 2.1 1.9 2017 2018 2.2 2.3 Russia Germany 2017 2018 2017 2018 CIS* 2017 2018 Europe 6.8 6.5 United States 3.5 6.5 6.5 2.6 1.5 0.7 2017 2018 2017 2018 3.4 China 2017 2018 2.6 Middle East & 201

  12. Slide 12: Regional breakdown Total Group revenues 9M 2017 – Group

    Regional breakdown Total Group revenues 9M 2017 – Group Total 1,398 in EUR million Germany 383 (27 %) Africa 48 (4 %) Americas 168 (12 %) Full year 2016 Total 1,586 Germany 481 (30 %) in EUR million Africa 75 (5 %) Americas 236 (15 %) Asia-Pacific, Far East & Australia Europe (other) 284 (18 %) 95 (

  13. Slide 13: Regional breakdown Total Group revenues 9M 2017 – Segments

    Regional breakdown Total Group revenues 9M 2017 – Segments Construction segment Equipment segment Resources segment Total 654 Total 551 Total 193 in EUR million Germany 144 (22 %) Germany 106 (19 %) Germany 133 (69 %) Africa 29 (4 %) Africa 13 (3 %) Africa 6 (3 %) Americas 71 (11 %) Americas 89 (16

  14. Slide 14: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials 9M/Q3 2017 & Guidance Appendix 17-11-14 IR-Presentation_Q3_2017 © BAUER AG, D-86529 Schrobenhausen 14

  15. Slide 15: 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 ∆ 9M 1.008 1.019 996 977 1.376 1.379 1.397 1.398 1.266 +22.0% 900 -4.1% 1.350 763 1.146 +27.5% 993 900 600 450 300 0 0 2014 2015 2016

  16. Slide 16: Construction segment – Highlights 9M 2017

    Financials Construction segment – Highlights 9M 2017 Construction  Total Group revenues amounting to EUR 666.5 million were 29.1% up on the previous year. The handling of extensive projects over the course of the year and capacity utilization distributed evenly across the globe were the main reason

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

    Financials Construction segment – Revenues and order development Construction Total Group revenues in EUR million +24.6% 250 223 230 206 213 193 197 199 193 195 200 178 177 187 183 176 178 184 172 153 160 150 100 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 Q2/1

  18. Slide 18: Equipment segment – Highlights 9M 2017

    Financials Equipment segment – Highlights 9M 2017 Equipment  Total Group revenues increased significantly by 24.3% from EUR 465.7 million to EUR 579.0 million and sales revenues by 39.0% from EUR 346.0 million to EUR 480.8 million.  EBIT increased strongly from EUR 22.8 million to EUR 46.7 million

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

    Financials Equipment segment – Revenues and order development Equipment Sales revenues in EUR million +37.0% 250 205 197 200 181 186 171 169 143 137 150 125 128 129 123 127 115 108 115 104 103 100 100 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 Q4/1

  20. Slide 20: Equipment segment – Market development vs. Bauer

    Financials 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%. 162 157 150 135 130

  21. Slide 21: Resources segment – Highlights 9M 2017

    Financials Resources segment – Highlights 9M 2017 Resources  Total Group revenues amounted to EUR 193.5 million, 5.8% down year-on-year (EUR 205.4 million).  EBIT amounted to EUR -5.3 million (previous year: EUR 3.4 million).  The raw materials markets are recovering only slowly – particularly in

  22. Slide 22: Resources segment – Revenues and order development

    Financials Resources segment – Revenues and order development Resources Total Group revenues in EUR million -1.7% 100 92 80 75 72 67 66 63 65 65 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 Q2/17 Q3/

  23. Slide 23: Working capital & net debt – typical cycle during the year

    Financials Working capital & net debt – typical cycle during the year Group Working capital in EUR million -8.1% 800 721 717 711 720 736 726 701 700 709 686 672 684 674 629 646 628 605 604 608 640 480 320 160 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

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

    Financials Working capital & net debt – requirements and development Group Bauer’s business model with its three segments Working capital / net debt requires considerably more working capital than other in EUR million Working capital Net debt companies in construction markets. 750 672 665 677 626 64

  25. Slide 25: Working capital needs & cash flow

    Financials Working capital needs & cash flow Group  Equipment segment: Building construction 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 Negat

  26. Slide 26: Working capital & net debt – Financing of future revenues

    Financials Working capital & net debt – Financing of future revenues Group Net debt is needed Working capital non-current & current debt – to finance mainly consists of inventory mainly liabilities to banks and receivables Inventory Construction Equipment Resources • Distribution on business segment

  27. Slide 27: Income statement 9M 2017

    Financials Income statement 9M 2017 in EUR '000 9M 2016 9M 2017 ∆ in % Sales revenues (P&L) 992,552 1,265,644 27.5% Consolidated revenues (P&L) 1,084,705 1,328,928 22.5% Cost of materials -531,816 -718,965 35.2% Personel expenses -275,177 -288,793 4.9% Other operation expenses -173,083 -202,409 16.9

  28. Slide 28: Balance sheet September 30, 2017

    Financials Balance sheet September 30, 2017 in EUR '000 Sep 30, 2016 Sep 30, 2017 ∆ in % Assets 1,706,651 1,783,532 4.5% A. Non-current assets 613,500 626,977 2.2% I. Intangible assets 24,653 21,254 -13.8% II. Property, plant and equipment and investment property 391,222 406,231 3.8% III. Investment

  29. Slide 29: Cash flow statement 9M 2017

    Financials Cash flow statement 9M 2017 in EUR '000 9M 2016 9M 2017 ∆ in % Cash flow from operational activity 9,468 45,812 n/a Cash flow from investment activity -34,044 -38,116 12.0% Cash flow from financing activity 18,497 16,632 -10.1% Free Cash Flow -24,576 7,696 n/a Changes in liquid funds affe

  30. Slide 30: Forecast 2017 – Earnings target reduced

    Financials Forecast 2017 – Earnings target reduced 2016 final 2017 forecast Long-term goal Total Group Revenues 1,586 EUR million ~ 1,800 EUR million Revenue growth -4.2 % 3-8% old: ~ 75.0 EUR million EBIT 68.3 EUR million new: ~ 65.0 EUR million EBIT margin 4.9 % 7-9% old: ~ 23 - 28 EUR million Ear

  31. Slide 31: Investor Relations: Financial calendar & contact

    Investor Relations Financial calendar & contact Annual Report 2017 April 12, 2018 Annual Press Conference April 12, 2018 Analyst Conference April 12, 2018 Annual General Meeting June 28, 2018 Quarterly Statement Q1 2018 May 14, 2018 Half-Year Interim Report to June 30, 2018 August 10, 2018 Quarterly

  32. Slide 32: Table of Content

    Table of Content BAUER Group – Strategy, Chances & Markets Financials 9M/Q3 2017 & Guidance Appendix 17-11-14 IR-Presentation_Q3_2017 © BAUER AG, D-86529 Schrobenhausen 32

  33. Slide 33: 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

  34. Slide 34: 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

  35. Slide 35: What is specialist foundation?

    What is specialist foundation? Building an excavation pit Supporting Wall Ground Water Underpinning Injection Injection Anchor Pile Foundation Sealing Slab 17-11-14 IR-Presentation_Q3_2017 © BAUER AG, D-86529 Schrobenhausen 35

  36. Slide 36: 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 17-11-14 IR-Presentation_Q3_2017 © BAUER AG, D-86529 Schrobenhausen 36

  37. Slide 37: 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

  38. Slide 38: 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

  39. Slide 39: Diavik, Canada – Diaphragm wall for Diavik Diamond Mines

    Construction Diavik, Canada – Diaphragm wall for Diavik Diamond Mines 17-11-14 IR-Presentation_Q3_2017 © BAUER AG, D-86529 Schrobenhausen 39

  40. Slide 40: Jakarta, Indonesia – Foundation works for Mori Tower

    Construction Jakarta, Indonesia – Foundation works for Mori Tower 17-11-14 IR-Presentation_Q3_2017 © BAUER AG, D-86529 Schrobenhausen 40

  41. Slide 41: Dogern, Germany – Dike remediation with Mixed-in-Place

    Construction Dogern, Germany – Dike remediation with Mixed-in-Place © euroluftbild.de 17-11-14 IR-Presentation_Q3_2017 © BAUER AG, D-86529 Schrobenhausen 41

  42. Slide 42: 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. 17-11-14 IR-Presentation_Q3_2017 © BAUER AG, D-86529 Schrobenhausen 42

  43. Slide 43: 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. 17-11-14 IR-Presentation_Q3_2017 © BAUER AG, D-86529 Schrobenhausen 43

  44. Slide 44: Product range: Duty-cycle cranes (MC series)

    Equipment Product range: Duty-cycle cranes (MC series) MC 64 MC 96 MC 128 17-11-14 IR-Presentation_Q3_2017 © BAUER AG, D-86529 Schrobenhausen 44

  45. Slide 45: 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

  46. Slide 46: Resources: 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

  47. Slide 47: Water – Process Water & Water Distribution Management

    Resources Water – Process Water & Water Distribution Management 17-11-14 IR-Presentation_Q3_2017 © BAUER AG, D-86529 Schrobenhausen 47

  48. Slide 48: Environment – Remediation of Kesslergrube landfill, Germany

    Resources Environment – Remediation of Kesslergrube landfill, Germany © Source: Press picture Roche 17-11-14 IR-Presentation_Q3_2017 © BAUER AG, D-86529 Schrobenhausen 48

  49. Slide 49: Market environment – Germany

    Market environment – Germany German construction market Germany 2016/ 2016/ Jan-Aug August 2017 2016 1995 2015 2017/2016 Employees in 1000 781.4 -44.7 2.7 6.2 Revenues in EUR billion 107.3 -8.1 7.5 10.3 Building construction 69.2 -12.3 7.8 11.5 Foundation engineering 38.1 0.4 7.1 8.8 Orders received

  50. Slide 50: BAUER share: Facts & Figures

    BAUER share Facts & Figures Share performance (01/2015 – 11/2017)  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.

  51. Slide 51: 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

  52. Slide 52: Key Figures Time Line FY 2008 – Q3 2017

    Key Figures Time Line FY 2008 – Q3 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 Q2 17 Q3 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 1,5

  53. Slide 53: 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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