bauer ag · bauer ag diaphragm wall for mrt stations ... regional breakdown of revenues3 4...

© BAUER AG, D-86529 Schrobenhausen 13-04-11 IR-Presentation_Analyst_Conference_FY2012

BAUER AG

Diaphragm wall for MRT stations – Kuala Lumpur, Malaysia

Analyst conference

fiscal year 2012 Munich, April 11, 2013

© BAUER AG, D-86529 Schrobenhausen 13-04-11 IR-Presentation_Analyst_Conference_FY2012 2

Total Group revenues (in EUR million)

1,600

1,200

800

400

0

Orders in hand (in EUR million)

800

600

400

200

0

Net profit (in EUR million)

60

45

30

15

0

Key Figures FY 2012

Employees (in average)

12,000

9,000

6,000

3,000

0

1,276 1,304 1,372

2009 2010 2011 2012

1,446

2009 2010 2011 2012

508.9 614.9 750.0 785.0

2009 2010 2011 2012

8,872 9,094 9,646 10,253

42.0 39.8 34.1

2009 2010 2011 2012

25.3


Mission & Strategy

Services, equipment & products dealing with ground

and groundwater

Our mission

Our strategy

The world is our market.

World market leadership for foundation technology.

Powerful development of drilling applications and related

services for resources, water and energy markets.

Optimizing worldwide organizational networks and self

controlling structures for the Group.

Growth 5 to 12 % per year.

BG 42 PremiumLine – Munich, Germany


Total Group revenues with EUR 1,445.6 million (+5.4 % yoy) fully on target.

Net profit of the Group with EUR 25.3 million significantly behind previous year (EUR 34.1 million) and

at lower end of the guidance range.

The year 2012 was marked by some extraordinary effects:

• Earnings in the Resources segment were positively effected by a project in Oman and a good

contribution from mining activities in Germany. By contrast, well drilling projects in Jordan led to a

considerable loss. A real estate development project of an associated company provided a good

contribution to earnings of the Construction segment.

The Construction and Resources segments recorded substantial growth, while the Equipment

segment saw a marked decline in revenues.

Order backlog for the Group increased again to EUR 785.0 million (+4.7 % yoy) and is near all-time

high. In Construction, order backlog with EUR 513.1 million exceeded the record level.

Guidance for FY 2013: total Group revenues will exceed EUR 1.5 billion; EBIT around EUR 85 million

and after-tax profit above EUR 30 million.

Main topics

Key Figures FY 2012


Key Figures FY 2012

2011

in EUR million

2012

in EUR million

∆ FY

in %

Q4 2012

in EUR million

Total Group revenues, of which

- Germany

- International

- Construction*

- Equipment*

- Resources

- Consolidation / Other

1,371.8

370.3

1,001.5

606.6

636.5

211.5

-82.8

1,445.6

385.3

1,060.3

656.8

596.1

263.9

-71.2

5.4 %

4.1 %

5.9 %

8.3 %

-6.3 %

24.8 %

n/a

382.4

104.3

278.1

172.8

151.9

72.6

-14.9

Sales revenues 1,219.6 1,344.4 10.2 % 410.5

Orders received 1,506.9 1,480.6 -1.7 % 392.2

Orders in hand 750.0 785.0 4.7 % n/a

EBITDA 164.5 163.2 -0.8 % 50.3

EBIT 82.3 71.4 -13.2 % 26.2

EBIT margin in % (of sales revenues) 6.7 5.3 n/a 6.4

Net income 34.1 25.3 -25.7 % 19.1

Earnings per share in EUR 1.86 1.42 -23.7 % n/a

Equity ratio in % 31.6 31.8 n/a n/a

Number of employees (average over the year) 9,646 10,253 6.3 % n/a

* Previous year figures have been adjusted. The Environmental Technology Division of SCHACHTBAU NORDHAUSEN GmbH

has been reassigned from the Equipment to the Construction segment.


Contents

Regional breakdown of Revenues 3

Financials 2012 4

Overview BAUER Group 1

BAUER market environment 2

p. 7

p. 12

p. 14

p. 16

5 BAUER share

6 Guidance 2013

p. 26

p. 28


1 BAUER Group The three segments

Target: ~ 40 % of

total Group revenues

Market leader in

specialist foundation

equipment

New products for

mining, deep drilling

and offshore drilling

80 % of revenues

from sales abroad

Multi-branding

strategy

Target: ~ 40 % of total Group revenues

Global provider for specialist foundation engineering services

Specialist construction services

Focus on complex, international projects

Target: ~ 20 % of

total Group revenues

Activities in

environmental

technology, mining,

deep drilling, well

construction,

materials


Resources Segment The three competence areas

1

Environment about 38 % of revenues*

Exploration & Mining

Services about 38 % of revenues*

Materials about 24 % of revenues*

Full-line provider for

materials in the field of

well construction

geothermal energy

distribution of gas/water/

geothermal energy

Production drilling

(for example: water wells)

Exploration drilling

Preparative work for the mining

of resources

Complete solutions in the field

of geothermal energy

Special solutions for mining

resources

Disposal of polluted areas

Cleaning of process water

and effluents

Processing of drinking water

Cleaning of extracted air

High purity systems

Brewing technology

High purity water systems * based on figures FY 2012

© BAUER AG, D-86529 Schrobenhausen 13-04-11 IR-Presentation_Analyst_Conference_FY2012

in EUR million (segment after decucting Other/Consolidation)

9

1

Note: 2000 – 2002 based on HGB figures, from 2003 based on IFRS figures

Resources

260

Equipment

543

Construction

Overseas

478

Total 1,446

Construction

Domestic

165

Total Group Revenues Longstanding healthy business development

German reunification

Far East crisis

Financial crisis


Worldwide network More than 110 subsidiaries in about 70 countries

1

BAUER Manufacturing Inc.

Conroe, Texas, USA

GWE Group, plant Luckau,

Germany

BAUER Maschinen KSM,

Kurgan, Russia

BAUER Equipment Malaysia

Shah Alam, Malaysia

Shanghai BAUER Technologies,

Shanghai, China

BAUER Group, plant Aresing near

Schrobenhausen, Germany

Permanent Offices:

Construction

Equipment sales

Resources

Equipment production

locations


1 BAUER Group Strengths & Chances

Strategic business model with three forward-looking segments

providing high level of synergies.

Global network organisation with flexible, decentralized

management.

World market leader in foundation equipment with innovative

strength in enhancing existing products and designing new

ones.

Strengths

Chances

Construction segment with considerable number of major pro-

jects currently under construction and tendered for worldwide.

New growth potential in Equipment segment with entirely new

techniques such as deep drilling rigs, powerful foundation

crane series and offshore equipment.

Resources segment with ground-breaking projects, e.g.

biological water treatment plant and promising opportunities

due to its focus on growth markets water, energy and

environment. TBA 100 – Small-sized deep driling rig

© BAUER AG, D-86529 Schrobenhausen 11-11-14 IR-Presentation_9M2011

+

World construction markets Bauer market potential

2

12

-

Western Europe:

declining markets,

Germany is quite good +

+

++

Far East:

positive development

in all areas, especially

Hongkong, Malaysia

+ Other Americas:

several chances in

Central America

o

Africa:

slight construction activities,

regional growth (Angola, Algeria);

demand for water and resources

Summary: Recovering market conditions worldwide, but generally very unstable; huge pent-up demand.

Specialist foundation construction grows relative to construction market.

Energy sector becomes main booster – also because of energy turnaround (renewable

energies & reduction of energy consumption);

Middle East:

stable, especially

Abu Dhabi, Qatar,

Saudi Arabia

Eastern Europe:

slowly positive development,

especially Russia

Central Asia:

good market

potentials

USA / Canada:

public demand,

power plants, dams, etc.

12

-- weak - slightly weak stable + growing ++ strong growth

-

+

+


Market environment Orders & Currency risks

2

Order backlog (Orders in hand) Currency Risks

Expected order intake

2013

Construction Germany

Construction International +

Equipment BAUER Maschinen GmbH –

Equipment Subsidiaries

Resources ++

-- weak - slightly weak adequate + well adequate ++ very well adequate

FY 2012 Reach in months

in relation to total

Group revenues

full year 2012

TOTAL

Construction

Equipment

Resources

EUR 785 million

EUR 513 million

EUR 113 million

EUR 159 million

6.5 months

9.4 months

2.3 months*

7.2 months

* incl. running small-type orders

Construction

Project size EUR 100,000 up to EUR 70 million

~ 50 / 50 infrastructure / large industrial buildings

~ 600 projects per year

Local financing (natural hedge) for project duration

Translation risk (consolidation) hedged

US$ business hedged, e.g. swaps

Equipment

~ 70 % of invoicing in EUR

US$ business hedged with permanent translation of

individual machines

Production expansion to US, China and others to

counteract currency risk Euro / US$ / RMB and

others


3 Regional breakdown Total Group revenues 2012

in EUR million

Total 1,446

in EUR million

Africa 67 (5 %)

Americas 191 (14 %)

Asia-Pacific,

Far East & Australia

292 (21 %)

Middle East

& Central Asia 171 (13 %)

Germany 370 (27 %)

EU excl. Germany

154 (11 %)

Europe (other)

127 (9 %)

Total 1,372

Full year 2011

Africa 60 (4 %)

Americas 203 (14 %)

Asia-Pacific,


328 (23 %)

Middle East

& Central Asia 197 (13 %)

Germany 385 (27 %)

EU excl. Germany

143 (10 %)

Europe (other)

130 (9 %)


3 Regional breakdown Construction, Equipment, Resources 2012

Figures after deducting Other/Consolidation

in EUR million

Total 643 Total 543 Total 260

Construction segment Equipment segment Resources segment

Africa 29 (4 %)

Americas 94 (15 %)

Asia-Pacific,


212 (33 %)

Middle East &

Central Asia 61 (9 %)

Germany 165 (26 %)

EU excl. Germany

51 (8 %)

Europe

(other)

31 (5 %)

Africa 14 (3 %)

Americas 103 (19 %)

Asia-Pacific,


115 (21 %)

Middle East &


Germany 100 (18 %)

EU excl.

Germany

78 (14 %)

Europe (other)

92 (17 %)

Africa 17 (6 %)

Americas 6 (2 %)

Asia-Pacific,


1 (1 %)

Middle East &


Germany 120 (46 %)

EU excl. Germany

14 (5 %)

Europe (other)

7 (3 %)


Revenues (in EUR million)

Earnings (in EUR million)

Financials Revenues, earnings & orders

4

1,600

1,200

800

400

0

100

75

50

25

0

Orders in hand (in EUR million)

800

600

400

200

0

Order intake (in EUR million)

2011 2012

297

283

293

240

303

446

293

1,113

2010 2009

368

1,410 +26.7 %

364

332

438

373

1,507

+6.9 %

Q1

Q2

Q3

Q4

342

-1.7 %

Total Group revenues Sales revenues

EBIT Net profit

389

358

2011 2012 2010 2009

1,276

1,096

1,304 1,132

1,372

1,220

1,446 1,344

508.9

2011 2012

614.9

2010 2009

750.0 785.0

84.4

42.0

2011 2012

88.4

39.8

2010 2009

82.3

34.1

71.4

25.3

392

1,481


Building construction

positive cash contribution

Specialist foundation engineering

pre-financing need

Financials Working capital needs & cash flow

4

EUR

12 24 months

Positive cash

contribution

Negative cash

contribution

Co

ntr

ac

t va

lue

EUR

Negative cash

contribution

12 24 months

Co

ntr

ac

t va

lue

Bauer’s business model with its three segments

requires considerably more working capital than

other companies in construction markets.

Changes during the year:

- Levels of working capital in the balance sheet during

the year are typically higher than year-end positions.

Construction segment:

- Construction contracts with short duration need

approx. 2 - 3 months pre-financing

(no advance payments, no front-loading of prices

possible, comparably long time needed for final

account settlement).

Comparison with main contractor: they can finance

their company by a positive cash flow from jobs.

Resources segment:

- A mixture of the Construction and Equipment

segments.


Financials Working capital needs & net debt

4

Net debt (in EUR million)

Net

fin

an

cia

l

de

bt

Pe

ns

ion

s

Net working capital (in EUR million)

720

540

360

180

0

2009 2010 2011 2012

446 520

46

49

645

52

611

54

2009 2010 2011

444 494 625

2012

585

Equipment segment:

- 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.

- Spare parts store is needed for large customer base.

- A relatively large rental fleet is needed for different

contract types (e.g. rental purchase).

- Deep drilling rigs add large numbers in value.

Special items related to net debt FY 2012:

- Successful reduction of net debt level by the end of

the year through different measures to lower

inventory position.

- Special effects of 2011 and 2012 are still on-going

and keep net debt position somewhat higher.

- With planned increase in revenues, we do not expect

a lower net debt level end of 2013 compared to 2012.


Financials Revenues Q4 / FY 2012

4



in EUR '000 Q4 2011 Q4 2012 ∆ Q4 in % FY 2011 FY 2012 ∆ FY in %

Total Group revenues 362,890 382,384 5.4% 1,371,831 1,445,591 5.4%

Sales revenues, Construction * 130,906 147,551 12.7% 506,227 579,069 14.4%

Sales revenues, Equipment * 165,049 194,450 17.8% 511,430 520,576 1.8%

Sales revenues, Resources 48,658 68,377 40.5% 201,549 244,273 21.2%

Sales revenues, Other 105 152 n/a 381 503 n/a

Sales revenues (external) 344,718 410,530 19.1% 1,219,587 1,344,421 10.2%

Consolidated revenues (P&L) 348,828 358,084 2.7% 1,327,085 1,385,862 4.4%

Orders in hand 749,968 784,998 4.7%


Financials Segment reporting FY 2012

4


Financials Earnings Q4 / FY 2012

4

n/a not applicable (a) of sales revenues (b) pre-minorities



in EUR '000 Q4 2011 Q4 2012 ∆ Q4 in % FY 2011 FY 2012 ∆ FY in %

EBITDA 52,014 50,316 -3.3% 164,496 163,194 -0.8%

Margin (a) 15.1% 12.3% n/a 13.5% 12.1% n/a

EBIT 30,791 26,177 -15.0% 82,300 71,399 -13.2%

EBIT margin (a) 8.9% 6.4% n/a 6.7% 5.3% n/a

EBIT Construction segment * 7,982 5,726 -28.3% 17,866 21,784 21.9%

EBIT margin, Construction segment (a) 6.1% 3.9% n/a 3.5% 3.8% n/a

EBIT Equipment segment * 18,689 13,574 -27.4% 52,981 33,720 -36.4%

EBIT margin, Equipment segment (a) 11.3% 7.0% n/a 10.4% 6.5% n/a

EBIT Resources segment 2,674 6,482 n/a 10,897 15,169 39.2%

EBIT margin, Resources segment (a) 5.5% 9.5% n/a 5.4% 6.2% n/a

Net income (b) 19,943 19,103 -4.2% 34,115 25,339 -25.7%

Margin (a) 5.8% 4.7% n/a 2.8% 1.9% n/a

Earnings per share (in EUR) 1.16 1.08 -7.0% 1.86 1.42 -8.8%


Financials Income statement FY 2012

4

in EUR '000 FY 2011 FY 2012 ∆ FY in %

Consolidated revenues (P&L) 1,327,085 1,385,862 4.4%

Sales revenues (P&L) 1,219,587 1,344,421 10.2%

Material costs -672,807 -686,834 2.1%

Personnel costs -298,761 -325,594 9.0%

Depreciation and amortization of fixed assets -66,287 -76,403 15.3%

Write-downs of inventories due to use -15,909 -15,392 -3.2%

Other operation expenses -191,021 -210,240 10.1%

EBIT 82,300 71,399 -13.2%

Financial income 6,624 5,972 -9.8%

Financial expenses -40,702 -44,657 9.7%

Result from associated entities -689 5,549 n/a

Profit before tax (EBT) 47,533 38,263 -19.5%

Income tax -13,418 -12,924 -3.7%

Net income 34,115 25,339 -25.7%

of which attributable to shareholders of BAUER AG 31,933 24,309 -23.9%

of which attributable to minority interest 2,182 1,030 -52.8%


Financials Balance sheet December 31, 2012

4

(a) Other provisions also include short term portion of pension provisions

in EUR '000 Dec 31, 2011 Dec 31, 2012 ∆ in %

Assets 1,487,450 1,521,474 2.3%

Intangible assets 30,303 34,567 14.1%

Property, plant and equipment 458,572 465,316 1.5%

Long term financial assets 18,635 23,617 26.7%

Other long term assets & deferred taxes 26,285 28,828 9.7%

Receivables from concession arrangements 43,975 40,770 -7.3%

Inventories 467,139 429,794 -8.0%

Receivables and other assets 412,808 448,836 8.7%

Effective income tax refund claims 4,786 4,514 -5.7%

Cash and cash equivalents 24,947 45,232 81.3%

Equity and liabilities 1,487,450 1,521,474 2.3%

Equity 470,434 483,075 2.7%

Pension provisions 50,732 51,859 2.2%

Non-current liabilities 412,153 493,156 19.7%

Current liabilities 529,692 471,799 -10.9%

Other provisions / tax 24,439 21,585 -11.7%


Financials Cash flow statement FY 2012

4

in EUR '000 FY 2011 FY 2012 ∆ FY in %

Cash flow from operating activities 8,459 165,713 n/a

Cash flow from investing activities -84,656 -76,187 -10.0%

Cash flow from financing activities 73,466 -68,008 n/a

Free Cash Flow -76,197 89,526 n/a

Changes in liquid funds affecting payments -2,731 21,518 n/a

Influence of exchange rate movements on cash 65 -1,233 n/a

Total change in liquid funds -2,666 20,285 n/a

Cash at beginning of reporting period 27,613 24,947 -9.7%

Cash at end of reporting period 24,947 45,232 81.3%


BAUER share Facts & Figures

5

Bauer family

48.19 %

Free float

51.81 %

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

Listed in SDAX (MDAX from 22.09.2008 to 19.09.2010)

Shareholder structure

Share performance (2012 – Jan. 2013)

SDAX

DAX

Trading volume

BAUER AG

in EUR 2009 2010 2011 2012 2013

Earnings per share 2.28 2.04 1.86 1.42 ---

Share price year end 29.25 35.30 21.10 19.32 ---

Share price highest 34.45 36.81 38.49 26.50 23.05

Share price lowest 20.64 27.38 16.04 16.13 18.93

Market Cap (in EUR million)

501.1 604.7 361.5 330.9 ~330


BAUER share Dividend policy

5

2009

Dividend payment (in EUR per share)

2010 2008 2007 2006

0.30

0.00

0.60

0.90

1.20

0.50

1.00 1.00

0.60 0.60

Dividend policy founded on a reasonable

balance between shareholders and

company

fair participation of shareholders

continuity over the years

safeguarding of the equity base

All shareholders shall participate in the

success of the business.

In turbulent times such as the financial crisis

our goal of strategic and safe growth of the

company led to slightly higher profit retention

for the last years.

To secure an adequate equity ratio is an

important aim of the company’s management.

With this we intend to safeguard the long-term

success of the Group.

2011

0.50

2012*

0.30

* Proposed; subject to the consent of the Annual General Meeting to be held on June 27, 2013


Guidance 2013 Top-line growth with an increase in profitability

5

2012e* 2012 final 2013e

Total Group Revenues ~ 1,450 EUR million 1,446 EUR million > 1,500 EUR million

EBIT ~ 76 EUR million 71.4 EUR million ~ 85 EUR million

Net profit 25 - 30 EUR million 25.3 EUR million > 30 EUR million

Merdeka station – Kuala Lumpur, Malaysia In-house exhibition, Schrobenhausen Water treatment plant – Nimr, Oman

* Guidance published November 14, 2012


Investor Relations

BAUER AG Tel.: +49 8252 97-1218

BAUER-Straße 1 Fax: +49 8252 97-2900

86529 Schrobenhausen

[email protected]

Germany www.bauer.de

BAUER AG

Financial calendar 2013

Publication Annual Report 2012 April 11, 2013

Annual Press Conference April 11, 2013

Analyst Conference April 11, 2013

Annual General Meeting June 27, 2013

Interim Report to March 31, 2013 May 15, 2013

Half-Year Interim Report to June 30, 2013 August 14, 2013

Interim Report to September 30, 2013 November 14, 2013

ISIN DE0005168108

Reuters B5AG.DE

Bloomberg B5A GR

Listing SDAX, CDAX, GEX,

Classic All Share

Prime All Share

DAXplus Family


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 are currently available to the

management of BAUER AG and therefore speak only as of the date they are made.

We assume no liability to update publicly or conform any of them to future events or

future developments.

Forward-looking information is subject to various known and unknown risks and un-

certainties, which could lead to material differences between the actual future results,

financial situation, development or performance of the BAUER Group and those

factors contained in any forward-looking statement. In view of these uncertainties, no

assurance can be given that these forward-looking statements will prove accurate

and correct, or that anticipated and projected future results will be achieved and we

caution you not to place undue reliance on these forward-looking statements.

bauer ag · bauer ag diaphragm wall for mrt stations ... regional breakdown of revenues3 4...

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