dam remediation at forggensee lake rosshaupten, germany€¦ · tunnel under suez canal –egypt...
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Group Presentation FY/Q4 2018April 15, 2019
Dam remediation at Forggensee Lake – Rosshaupten, Germany
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 2
At EUR 1,686.1 billion, total Group revenues were down by 4.9%. Insufficient capacity utilization as well as project
postponements and cancellations, which were mainly caused by the weak market in the Middle East, resulted in the
overall decline in revenues.
With EBIT of EUR 100.1 million and earnings after tax of EUR 24.1 million, we have reached our earnings targets from
the last annual report. EBIT was even slightly better than expected.
At EUR 1,013.6 million, the order backlog stood at a very pleasing level at the end of 2018 and was up 3.7% from the
previous year's figure.
The net debt of our company fell significantly by 5.4% to EUR 561.9 and has returned to a lower level once again. A
decline of 12.3% was already achieved last year.
Forecast 2019: total Group revenues of around EUR 1.7 billion and EBIT of around EUR 95 million. We expect earnings
after tax to be significantly higher than in the previous year.
HighlightsFY 2018 – BAUER Group
Total Group revenues
EUR 1,686 million(-4.9%)
Sales revenues
EUR 1,589 million(-4.7%)
EBIT
EUR 100.1 million(+11.7%)
Earnings after tax
EUR 24.1 million(2017: EUR 3.7 million)
Total assets
EUR 1,632 million(+0.9%)
Order backlog
EUR 1,014 million(+3.7%)
Net debt
EUR 561.9 million(-5.4%)
Equity ratio
26.5%(2017: 25.9%)
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 3
Key FiguresFY 2018
FY 2017in EUR million
FY 2018in EUR million
∆ FY in %
Total Group revenues, of which
- Germany
- International
- Construction
- Equipment
- Resources
- Other/Consolidation
1,772.0
477.8
1,294.2
835.0
754.5
248.2
-65.7
1,686.1
467.1
1,219.0
767.6
723.1
261.5
-66.1
-4.9%
-2.3%
-5.8%
-8.1%
-4.2%
+5.3%
n/a
Sales revenues 1,667.9 1,589.1 -4.7%
Order intake 1,741.7 1,721.9 -1.1%
Order backlog 977.8 1,013.6 +3.7%
EBITDA 182.6 198.6 +8.8%
EBIT 89.6 100.1 +11.7%
EBIT margin in % (of sales revenues) 5.4 6.3 n/a
Earnings after tax 3.7 24.1 n/a
Earnings per share (in EUR) 0.16 1.32 n/a
Total assets 1,617.7 1,632.3 +0.9%
Equity 418.7 431.8 +3.1%
Equity ratio in % 25.9 26.5 n/a
Employees (average over the year) 10,913 11,643 +6.7%
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 4
FinancialsFinal figures 2018 vs. forecast and long-term targets
2018 forecast
Total Group Revenues ~ 1,700 EUR million ~ 1,686 EUR million
Revenue growth -4.9% 3 - 8 %
EBIT ~ 90 EUR million 100.1 EUR million
EBIT margin 6.3% 7 - 9 %
Earnings after tax significantly higher than 2017 24.1 EUR million
Equity ratio 26.5% > 30 %
2018 final Long-term goal
Tunnel under Suez Canal – Egypt Soil replacement – Hersbruck, GermanyIn-house exhibition
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 5
Table of Content
BAUER Group – Strategy, Chances & Markets
Appendix
Financials FY/Q4 2018 & Guidance
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 6
The BAUER Group is a leading provider of services, equipment &
products dealing with ground and groundwater.
Mission
Strategy
The world is our market.
Global network organization with flexible, decentralized management.
Three forward-looking segments providing high level of synergies:
Construction, Equipment, Resources
World market leadership for foundation technology.
Powerful development of drilling applications and services
for related markets.
Highly innovative products and services related to water, environment
and natural resources.
Diaphragm wall for dam remediation – Germany
BAUER GroupMission & Strategy
EUR 1.7 billiontotal Group revenues
EUR 100 millionEBIT
6.3%EBIT margin
26.5%equity ratio
11,643employees FY 2018
Key targets
Revenue growth: 3 - 8% per year
EBIT margin: 7 - 9%
Equity ratio: > 30%
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 7
Equipment
672
Construction
Overseas
566
Construction
Domestic
189
Resources
259
BAUER GroupLongstanding healthy business development
1,600
1,000
1,400
800
600
200
1,200
400
1,800
Note: from 2003 based on IFRS figures
1980 1982 1984 1986 1996 1998 2000 2002 2004 200619901988 1992 1994 2008 2010 2012 2014 2016
0
Total 1,686Total Group revenuesin EUR million (segment after deducting Other/Consolidation)
2018
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
Sales
CAGR
835
1,033
1,291
1,097 1,1321,220
1,344 1,402 1,376 1,379 1,397
1,6681,589
0
400
800
1,200
1,600
2,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
980
1,208
1,527
1,278 1,304 1,372 1,436 1,504 1,5601,656
1,555
1,7721,686
0
400
800
1,200
1,600
2,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Sales revenuesin EUR million
Total Group revenuesin EUR million
8
CAGR
4.6%
BAUER GroupLongstanding healthy business development
CAGR
5.5%
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 9
Worldwide networkMore than 110 subsidiaries in about 70 countries
Schrobenhausen
Kuala LumpurTianjin
Permanent Offices:
Construction
Equipment sales
Resources
Equipment production
Conroe
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
Market: repeatedly large projects
in some countries
Bauer: reasonable order backlog
Latin America
Market: recovery in most West
European countries; slow
development in Eastern Europe;
Russia remains weak
Bauer: Switzerland, Netherlands,
UK positive; good backlog in
Eastern Europe
Europe
Market: positive development in
most markets; Malaysia,
Singapore and Hong Kong weak
Bauer: high order backlog,
especially Thailand and
Philippines;
Far East
Market: repeatedly large projects in
some countries, Egypt still growing
Bauer: focus only on single projects,
high backlog in Egypt
Africa
Market: ongoing uncertainty as a
result of oil price; some projects
stopped; sanctions against Qatar;
Bauer: low order backlog, major
project in Jordan
Middle East
Market: big need for infrastructure
investments in USA, Canada
weaker
Bauer: still in reorganization phase
in USA, just single projects;
Canada a bit weak
USA / CanadaMarket: infrastructure
budgets raised
Bauer: high order backlog
Germany
10
BAUER GroupConstruction market environment vs. order backlog
+
-
o
o
+
++
o
o
-
-
+
+
o
o
-- weak - slightly weak o stable + growing ++ strong growthLast update: April 2019
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 11
Africa 73 (4 %)
Americas 171 (10 %)
Asia-Pacific,
Far East & Australia
428 (25 %)
Middle East
& Central Asia 212 (13 %)
Germany 467 (28 %)
EU excl. Germany 276 (16 %)
Europe (other)
59 (4 %)
Regional breakdownTotal Group revenues FY 2018 – Group
Total 1,686in EUR million
Africa 63 (3 %)
Americas 228 (13 %)
Asia-Pacific,
Far East & Australia
426 (24 %)
Middle East
& Central Asia 201 (11 %)
Germany 478 (27 %)
EU excl. Germany
258 (15 %)
Europe (other)
118 (7 %)
Full year 2017
Total 1,772
in EUR million
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 12
Africa 48 (6 %)
Americas 44 (6 %)
Asia-Pacific,
Far East
& Australia
203 (27 %)
Middle East
& Central Asia 147 (19 %)
Germany 189 (25 %)
EU excl. Germany
109 (15 %)
Europe
(other)
15 (2 %)
Africa 15 (2 %)
Americas 120 (18 %)
Asia-Pacific,
Far East & Australia
224 (33 %)
Middle East
& Central Asia 27 (4 %)
Germany 100 (15 %)
EU excl.
Germany
144 (22 %)
Europe
(other)
42 (6 %)
Africa 10 (4 %)
Americas 7 (3 %)
Asia-Pacific,
Far East & Australia 1 (0 %)
Middle East & Central Asia
38 (15 %)
Germany 178 (68 %)
EU excl.
Germany
23 (9 %)
Europe (other)
2 (1 %)
Regional breakdownTotal Group revenues FY 2018 – Segments
Total 755in EUR million
Total 672 Total 259
Construction segment Equipment segment Resources segment
Figures after deducting Other/Consolidation
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 13
Table of Content
BAUER Group – Strategy, Chances & Markets
Appendix
Financials FY/Q4 2018 & Guidance
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
494 379 484 429
405381
454386
550
396
409422
362
411
394485
2015 2016 2017 2018
996 1,008 978 1,014
0
250
500
750
1,000
1,250
2015 2016 2017 2018
1,6561,555
1,7721,686
1,379 1,397
1,6681,589
0
400
800
1,200
1,600
2,000
2015 2016 2017 2018
90.7
70.3
89.6100.1
29.0
14.43.7
24.1
0
25
50
75
100
125
2015 2016 2017 2018
14
Q1
Q2
Q3
Q4
FinancialsRevenues, earnings & orders – Group
Revenues
Earnings
Order backlog
Order intake
in EUR million
in EUR million in EUR million
in EUR millionTotal Group revenues Sales revenues
EBIT Earnings after tax
1,811
1,567
+3.7%
-4.7%1,741
-4.9%
-4.7%
∆ FY
+11.7%
n/a
∆ FY 1,722
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
-1.8
26.3
19.6
39.1
177231
835768 493
547
FinancialsConstruction segment – Highlights FY 2018
Construction
Global provider for specialist
foundation engineering services
Focus on complex, international
projects
~ 50/50 infrastructure / industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues were EUR 767.6 million, down 8.1% (previous year:
EUR 835.0 million). FY 2017 figures were at an unusually high level. This decline is
due to a weaker utilization as well as project postponements and cancellations,
which were mainly caused by the weak market in the Middle East.
EBIT increased from EUR 19.6 million to EUR 39.1 million. Earnings after tax
amounted to EUR 9.6 million (previous year: EUR -15.2 million).
Q4 2018 was exceptionally good, while 2017 was burdened by two negative effects:
reassessment of slightly more than EUR 20 million on receivables (Hong Kong
arbitration) as well as negative currency effects.
Order backlog increased by 11.1% to EUR 547.3 million (previous year: EUR 492.7
million) due to higher order intake, which totaled EUR 822.2 million and was 10.8%
above the previous year's figure of EUR 742.4 million. The order book lasts for 8.6
months.
15
-8.1%+11.1%
2017 2018 2017 2018 2017 2018
Full year 2018:
45% of total Group revenues
EBIT margin: 5.4%
Key targets:
~ 40% of total Group revenues (TGR)
EBIT margin: 4 - 6%
Key figures to be considered:
TGR, order backlog, EBIT
FY
Q4+98.9%
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
153
193 197 199178 177
187 183193
176195
178156
171185
201211 221 227
177
151
176
210231
0
50
100
150
200
250
Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18Q4/18
513 531498 499
436477 472 455
513551 584 591 585 575 578 585 578
526 516 493 511 507 503547
0
125
250
375
500
625
Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18Q4/18
FinancialsConstruction segment – Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
16
+30.6%
+11.1%
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
31.7
22.7
80.674.9
180 194
661 640
182 167
760 724
FinancialsEquipment segment – Highlights FY 2018
Market leader in specialist
foundation equipment
New products for mining, deep
drilling and offshore drilling
About 80% of sales abroad Sales revenuesin EUR million
Order intakein EUR million
EBITin EUR million
Equipment Total Group revenues with EUR 723.1 million decreased by 4.2% against the
previous year (EUR 754.5 million). Sales revenues decreased by 3.2% from EUR
660.0 million to EUR 640.1 million.
In a very healthy market environment, we succeeded in keeping figures at very
good levels. The main drivers were the sales markets in Europe and Asia,
especially China.
EBIT dropped slightly from EUR 80.6 million to EUR 74.9 million and earnings after
tax from EUR 41.0 million to EUR 34.0 million. Additional depreciation of deep
drilling rigs amounting to about EUR 15 million influenced the earnings figures for
2018.
Order intake fell by 4.8% from EUR 759.9 million to EUR 723.7 million. Order
backlog with EUR 149.9 million is at the previous year's level (EUR 149.3 million).
17
-3.2% -4.8%
Full year 2018:
40% of total Group revenues
EBIT margin: 11.7%
Key targets:
~ 40% of total Group revenues
EBIT margin: 10 - 12%
Key figures to be considered:
Sales revenues, order intake, EBIT 2017 2018 2017 2018 2017 2018
FY
Q4
-7.1%
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
104125 128
205
103115
143
171
100
137 129
181
108 115 123
197
127
186169
180
129
174
144
194
0
50
100
150
200
250
Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18Q4/18
165185
154
127
165 163187
162177
155166
152 161 159 160171
212 218
148
182
227
170 160 167
0
50
100
150
200
250
Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18Q4/18
FinancialsEquipment segment – Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
18
+7.6%
-8.6%
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
186163 159
133 130
162
0
50
100
150
200
2012 2013 2014 2015 2016 2017
521562 545 548
543
661
0
175
350
525
700
2012 2013 2014 2015 2016 2017
FinancialsEquipment segment – Market development vs. Bauer
Sales revenues of the Bauer Equipment segmentin EUR million
Revenues of 50 largest construction equipment manufacturersin USD billion
Equipment
Source: internationalconstruction (04/2018)
Revenues of the world’s 50 largest construction
equipment manufacturers saw a tremendous
decline between 2012 and 2016 of 31%. In China the
decline with 50% was even worse.
The very competitive situation because of the
surplus production capacities in China is easing.
In 2017 there was a reasonable growth of 22%.
The main driver was the Chinese market with +82%.
Bauer passed through this turbulences between
2012 and 2016 with a small increase in revenues
and profited from the overall growth in 2017 also
with a 22% increase of sales.
This development shows the success of the efforts
made regarding, quality, efficiency and noise
reduction of Bauer equipment.
19
-13%
+24%
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
-5.5
-3.2
-10.0-11.0
5572
248261 336
316
FinancialsResources segment – Highlights FY 2018
Products & services related to water,
environment and natural resources.
Competence areas: water treatment,
environmental remediation, waste
management, drilling technologies
and constructed wetlands
Total Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Resources Total Group revenues with EUR 261.5 million increased by 5.3% against the
previous year (EUR 248.2 million).
EBIT decreased slightly from EUR -10.0 million to EUR -11.0 million and earnings
after tax were up from EUR -22.4 million in the previous year to EUR -16.0 million.
The overcapacities and underutilization of the subsidiary in Jordan continued to
result in heavy financial burdens.
Order backlog was 5.7% down to EUR 316.5 million. The order book lasts for 14.5
months. With EUR 242.2 million, order intake was significantly lower than in the
previous year (EUR 305.2 million). The decrease was mainly due to the very high
order intake of 2017, which included the major contract to expand the reed bed
treatment plant in Oman, a project worth about EUR 160 million.
We are confident that we will be able to make significant progress towards positive
earnings in the Resources segment in 2019.
20
+5.3%-5.7%
Full year 2018:
15% of total Group revenues
EBIT margin: n/a
Key targets:
~ 20% of total Group revenues (TGR)
EBIT margin: 6 - 8%
Key figures to be considered:
TGR, order backlog, EBIT 2017 2018 2017 2018 2017 2018
FY
Q4
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
39
55 53
4248
5360
92
5448
75
44
7167 66
5763 65 65
55 52
68 70 72
0
20
40
60
80
100
Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18Q4/18
165183 177
150173 169 172
153173 174
274 276 287 294 290 279297
317 308336 330 321 324 316
0
75
150
225
300
375
Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18Q4/18
FinancialsResources segment – Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
21
+30.6%
-5.7%
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
FinancialsWorking capital & net debt – Financing of future revenues
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
Inventory
Receivables
Construction segment
Construction contracts with short duration need approx. 2 - 3 months of pre-financing
(no advance payments, no front-loading of prices possible, comparably long time needed for final account settlement).
Receivables also includes litigations. On some jobs collection of money need a long time due to disputes with the customer.
However, there were no large valuation adjustments on receivables in the last years (less than 4% of receivables in average p.a.)
Payment terms in some regions are 6 to 9 months
Equipment segment
Machinery parts need to be pre-ordered well in advance, because of delivery times of up to 12 months. Customer often need their
equipment in a few weeks. Therefore, approx. 3 months of the equipment during production is pre-financed.
Worldwide spare parts stores are needed for large customer base and a 24/7 after-sales service. A relatively large rental fleet is
needed for different contract types (e.g. rental purchase).
Resources segment
Outstanding customer payments (water business) and receivables on projects (environmental & drilling business)
75-80%15-20% ~5%
Construction Equipment Resources
20-25%55-60% 15-20%
22
Key facts
Why does the business model needs so much working capital?
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
1,504 1,5601,656
1,555
1,772 1,686
672 646 665 677594 562
0
360
720
1,080
1,440
1,800
2013 2014 2015 2016 2017 2018
605 604 629 608549 552
672646 665 677
594562
0
150
300
450
600
750
2013 2014 2015 2016 2017 2018
23
FinancialsWorking capital & net debt – Current development
Total Group revenues / net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development:
Net debt fell very sharply by 17.7% to EUR 561.9
million in the last two years. Inventories, finished
goods and receivables are lower due to the
improvement of the operating business as well as our
own implemented measures.
Net debt to EBITDA ratio has improved substantially.
Our target range is a ratio of below 3.0 yearend,
which is a comfortable area for our business model.
+12.1%
-16.4%
∆ 2013/
2018
Working capital / net debtin EUR million
Net debt / EBITDA ratioin EUR million
Net debtTotal Group revenues – Net debt/EBITDA
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
724777 781
672
773 776 778
646
779 752 749
665
743 762 736677
740 712 686
594639
678 679
562
0
160
320
480
640
800
Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18Q4/18
686721 717
605
711 720 736
604
726 701 700
629672
709 684
608674 646 628
549 576624 629
552
0
160
320
480
640
800
Q1/13Q2/13Q3/13Q4/13Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18Q4/18
24
FinancialsWorking capital & net debt are lower year-end than during the year
Net debt (excl. pensions)in EUR million
Working capitalin EUR million +0.6%
-5.4%
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 25
FinancialsIncome statement FY 2018
in EUR '000 12M 2017 12M 2018 ∆ in %
Sales revenues (P&L) 1,667,861 1,589,091 -4.7%
Consolidated revenues (P&L) 1,688,137 1,616,936 -4.2%
Cost of materials -919,596 -821,496 -10.7%
Personel expenses -383,530 -392,384 2.3%
Other operation expenses -202,458 -204,440 1.0%
EBITDA 182,553 198,616 8.8%
Depreciation of fixed assets -78,342 -80,967 3.4%
Write-downs of inventories due to use -14,644 -17,590 20.1%
EBIT 89,567 100,059 11.7%
Financial income 37,649 38,204 1.5%
Financial expenses -90,784 -76,992 -15.2%
Share of profit/loss of associated companies (equity method) -1,124 4,594 n/a
Earnings before tax (EBT) 35,308 65,865 86.5%
Income tax expense -31,643 -41,778 32.0%
Earnings after tax 3,665 24,087 n/a
of which attributable to shareholders of BAUER AG 2,740 22,577 n/a
of which attributable to non-controlling interests 925 1,510 63.2%
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 26
Financials Balance sheet December 31, 2018
in EUR '000 Dec 31, 2017 Dec 31, 2018 ∆ in %
Assets 1,617,703 1,632,284 0.9%
Non-current assets 629,147 621,041 -1.3%
Intangible assets 21,021 18,077 -14.0%
Property, plant and equipment and investment property 407,429 411,571 1.0%
Investments accounted for using the equity method 121,315 113,019 -6.8%
Participations 11,733 8,350 -28.8%
Other non-current assets & deferred tax assets 67,649 70,024 3.5%
Current assets 988,556 1,011,243 2.3%
Inventories 430,606 426,353 -1.0%
Less advances received on inventories -13,883 -16,098 16.0%
416,723 410,255 -1.6%
Receivables and other assets 520,591 535,111 2.8%
Effective income tax refund claims 3,976 3,290 -17.3%
Cash and cash equivalents 47,266 62,587 32.4%
Equity and liabilities 1,617,703 1,632,284 0.9%
Equity 418,732 431,816 3.1%
Non-current debt 334,399 501,424 49.9%
Provisions for pensions 126,332 134,389 6.4%
Non-current liabilities & deferred tax liabilities 208,067 367,035 76.4%
Current debt 864,572 699,044 -19.1%
Financial liabilities 460,565 286,104 -37.9%
Other current liabilities 364,998 357,851 -2.0%
Effective income tax obligations 16,202 31,687 95.6%
Provisions 22,807 23,402 2.6%
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 27
FinancialsCash flow statement FY 2018
in EUR '000 12M 2017 12M 2018 ∆ in %
Cash flow from operational activity 183,330 147,444 -19.6%
Cash flow from investment activity -64,816 -57,600 -11.1%
Cash flow from financing activity -102,732 -75,088 -26.9%
Free Cash Flow 118,514 89,844 -24.2%
Changes in liquid funds affecting payments 15,782 14,756 -6.5%
Influence of exchange rate movements on cash -1,979 565 n/a
Total change in liquid funds 13,803 15,321 11.0%
Cash and cash equivalents at beginning of reporting period 33,463 47,266 41.2%
Cash and cash equivalents at end of reporting period 47,266 62,587 32.4%
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 28
FinancialsForecast 2019 – Increase of earnings after tax
2018 final
Total Group Revenues 1,686 EUR million ~ 1,700 EUR million
Revenue growth -4.9% 3 - 8 %
EBIT 100.1 EUR million ~ 95 EUR million
EBIT margin 6.3% 7 - 9 %
Earnings after tax 24.1 EUR million significantly higher than 2018
Equity ratio 26.5% > 30 %
2019 forecast Long-term goal
Slope stabilisation with BG 15 – Germany Largest water treatment plant – Nimr, OmanCompact cutter system for Grand Paris
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 29
BAUER Aktiengesellschaft
BAUER-Straße 1
86529 Schrobenhausen
Germany
Tel.: +49 8252 97-1218
www.bauer.de
April 15, 2019 Annual Report 2018
Analyst & Press Conference
May 14, 2019 Quarterly Statement Q1 2019
June 27, 2019 Annual General Meeting
August 14, 2019 Half-Year Interim Report to June 30, 2019
November 14, 2019 Quarterly Statement 9M/Q3 2019
www.youtube.com/Bauergruppe
www.facebook.com/BauerAGgroup
Investor RelationsFinancial calendar & contact
Christopher Wolf
Head of Investor Relations
2019
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 30
Table of Content
BAUER Group – Strategy, Chances & Markets
Appendix
Financials FY/Q4 2018 & Guidance
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 31
1790 · 1900 · 1902 · 1928 · 1948 · 1956 · 1958 · 1967 · 1969 · 1972 · 1975 · 1976 · 1984 · 1990 · 1992 · 1994 · 1998 · 2001 · 2018
BAUER GroupThe history – Two centuries of experience
End of 1970’s:
Start of
internationalisation
Early 1990’s:
Build up of
specialist construction/
environmental business
FY 2018:
Total Group
revenues
EUR 1.7
billion,
11,643
employees
4. Jul 2006:
IPO
Early 1970’s:
Start of equipment
manufacturing
Company founded as
copper forge
After WW II (1950's):
Start of construction
business
Early 1980’s:
Selling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2018
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 32
Michael Stomberg (CEO)
HSE
IT
Process Management
Quality Management
Florian Bauer
Digitalization
Development
Coordination
Training
Company Culture
Hartmut Beutler (CFO)
Financing & Treasury
Legal Affairs & Insurance
IR & Corporate
Communications
Facility Management
Media Design
Peter Hingott
Group Controlling &
Accounting
Human Resources
Group Purchasing
Management BoardBAUER AG
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 33
BAUER GroupThe three segments
33© BAUER AG, D-86529 Schrobenhausen
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, deep
drilling, well
construction,
materials
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 34
BAUER GroupChallenges of the world provide chances for the company
The megatrend of urbanization requires
construction solutions for the city of
the future
To deal with the scarcity of drinking
water, purification and supply
technologies are needed
The increasing mobility in society
demands new and renewed transport
routes
Changing social values are
fundamentally revolutionizing the
business world
UrbanizationInfrastructure Water
CultureA change in energy supply can only be
realized through comprehensive
construction works
The remediation of contaminated soil
is the key to sustainable utilization of
resources
Energy transitionEnvironment
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
ConstructionKey facts
Construction
Leading global provider for
specialist foundation engineering
services
35
Total Group revenues (incl. JV)
Order backlog
EBIT
~ 40% of total Group revenues
EBIT margin: 4 - 6%
(2018: 5.4%)
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 on the entire year
Market environment
Growing construction markets worldwide
Special foundation engineering is growing stronger than construction markets
Huge pent-up demand in developed countries and in emerging markets
Competition
Keller, Trevi, Soletanche Bachy
(worldwide)
Local competitors in each country
Current focus topics
Improving project and risk management, especially for major projects
Leading in digitalization solutions for our market
Key figures
Key targets
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 36
What is specialist foundation?Building an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection
Anchor
Diaphragm and
Cut-off Wall
Pile Foundation
Piling Retaining
Wall
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 37
What is specialist foundation used for?Applications
Foundationsfor the highest buildings in the world
Excavation Pits for every problem and requirement
Ground Improvementallows projects on weak ground
Cut-off Walls as solution for dams and dikes
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 38
ConstructionYork, UK – Shaft sinking for Woodsmith Mine
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
EquipmentKey facts
Market leader in specialist
foundation equipment
Equipment
39
Sales revenues (excl. JV)
Order intake
EBIT
~ 40% of total Group revenues
EBIT margin: 10 - 12%
(2018: 11.7%)
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 drilling rigs (oil & gas)
Market environment
Growing construction markets worldwide lead to positive equipment demand
Strong position due to efforts regarding quality, efficiency and noise reduction
Growth potential with specialized machines for mining, water and offshore drilling
Competition
Trevi, Liebherr, Chinese manufactures
(e.g. Sany, XCMG)
Further competition regarding special product types
Current focus topics
Focus on value analysis methods and purchase organization
Optimizing and increasing after-sales services
Key figures
Key targets
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 40
EquipmentWhole range of products for special foundation engineering
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 41
EquipmentProduct 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 and
manufacturing of drilling rigs, NeoRig develops and manufactures
modern drilling solutions which set new standards of safety, efficiency,
productivity and ease of service in the deep drilling business.
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
ResourcesKey facts
Resources
42
Products & services for environmental
technology, mining, well construction
and water cleaning
Total Group revenues (incl. JV)
Order backlog
EBIT
~ 20% of total Group revenues
EBIT margin: 6 - 8%
(2018: n/a)
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 environment
Huge demand for environmental and water solutions
Outstanding market position with ground-breaking projects in the field of cleaning
drinking and process water, e.g. the biological water treatment plant in Oman
Competition
Fragmented competition for each single product and service area
Current focus topics
Improvement of loss-making Jordan subsidiary, which is caused by overcapacities
Consistent proceeding of reorganization in the water related companies
Focus on new projects for the profitable environment business
Key figures
Key targets
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 43
ResourcesPool of competences from a single hand
Industrial Waste Water
Process & Produced Water
NORM
Constructed Wetlands
Modelling & Well Design
Construction Material for Wells
and Geothermal
Water Distribution Management
Irrigation Systems
Remediation
Landfill Restoration
Decommissioning
Demolition
Hazardous Waste Management
Soil Treatment and Waste
Management
Exploration Drilling
Deep Geothermal Drilling
Well Drilling
Blast Hole Drilling
EnvironmentWater Natural Resources
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 44
ResourcesWater – Process Water & Water Distribution Management
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 45
ResourcesEnvironment – World’s biggest reed bed treatment plant, Oman
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 46
Market environment – GermanyGerman construction market
Source: Federal Statistical Office, Statistical Office Bavaria
in EUR billion
Germany
2018
Employees (in 1,000)
Revenues 85.2
Building construction 47.2
Foundation engineering 38.0
Orders received *
in EUR billion
Housebuilding 17.8
Industrial building 33.3
Public sector
of which
public buildings 4.9
road building 13.7
underground structures 9.7
*) only companies > 20 employees
28.4
79.5
463.7
12.5
6.6 10.0
7.2
6.8
in %
13.2
11.2
December 20182017/ 2018
2016 2017
3.8
5.3
7.8
4.9
10.8
9.5
5.0
6.9
11.4
5.9
8.5
9.8
8.8
2.5
5.9
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
2019 2020
2019 2020 2019 2020
47
2019 2020
2019 2020
2019 2020
2019 2020
1.8 1.73.3 3.6
2019 20204.4 4.8
1.42.4
2019 2020
6.3 6.3
1.6 1.7
6.3 6.1
2.12.8
2019 2020
2.3 1.9
2019 20201.3 1.5
0.81.4
2019 2020
3.5 3.72019 2020
1.3
3.2
Global economic situationIMF projection of the real annual GDP growth in %
Source: International Monetary Fund, World Economic Outlook Database, April 2019
United States
Germany
Middle East &
North Africa
Sub-Saharan Africa
World
Russia
Australia
Developing Asia
Latin America
Europe
China
Advanced
Economies
Emerging Markets &
Develop. Economies
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 48
Building construction
positive cash contribution
Specialist foundation engineering
pre-financing need
Financials Working capital needs – Comparison with building construction
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
Construction contracts with short duration need
No advance payments, no front-loading of prices
possible approx. 2 - 3 months of pre-financing
Negative cash contribution during construction phase
Construction contracts with long durations
Advance payments, front-loading of prices
Positive cash contribution during construction phase
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 49
BAUER shareFacts & Figures
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
Share performance (01/2018 – 04/2019)
Bauer familyFree float
51.81 %
Shareholder structure
48.19 %
in EUR 2015 2016 2017 2018 2019
Earnings per share 1.73 0.66 0.16 1.32 ---
Share price year end 17.40 11.40 30.00 12.16 ---
Share price highest 19.20 17.16 30.96 31.25 18.30
Share price lowest 13.85 9.45 11.72 12.08 12.62
Market Cap(in EUR million)
298.1 195.3 513.9 208.3 ~300
CDAX
Classic All Share
Prime All Share
ISIN DE0005168108
Reuters B5AG.DE
Bloomberg B5A GR
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018
0.50
1.00 1.00
0.60 0.60
0.50
0.30
0.01
0.15 0.150.10 0.10 0.10
0.00
0.30
0.60
0.90
1.20
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
50
BAUER shareDividend policy
Dividend payment Dividend policy founded on a reasonable balance
between shareholders and company
fair participation of shareholders
maintaining continuity
safeguarding of the equity ratio
All shareholders shall participate in the success of the
business.
After some difficult years, we must continue to strike a
careful balance between continuity and shareholder
participation on the one hand, and safeguarding our
equity ratio on the other.
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. Our mid-term target is an equity ratio of more
than 30%.
In the medium term, the payout ratio should be about
25 to 30% of the reported earnings after tax.
in EUR per share
0.00
* Proposed; subject to the consent of the Annual General Meeting to be held on June 27, 2019
*
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 51
Key Figures Time LineFY 2008 – FY 2018
In all three segments, total Group revenues and EBIT figures of Q4 2015 and FY 2015 were influenced by exceptional earnings.
Quarters and FY’s of 2016 and 2017 were adjusted.
Total Group revenues2008 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
(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 1,656.4 374.0 372.0 387.3 421.3 1,554.7 448.2 454.1 476.6 393.1 1,772.0 370.8 421.5 443.5 450.3 1,686.1
Construction 700.9 570.0 615.4 606.6 655.2 741.7 725.6 742.9 156.3 171.3 185.0 200.6 713.1 211.0 220.5 226.9 176.6 835.0 150.8 176.2 210.0 230.6 767.6
Equipment 780.1 608.5 581.7 636.5 589.1 628.6 639.2 753.1 159.6 146.7 150.8 177.3 634.4 186.7 185.3 196.6 185.9 754.5 180.8 193.6 180.2 168.5 723.1
Resources 135.1 174.3 177.7 211.5 262.8 188.9 252.8 221.6 71.4 67.4 66.4 57.4 262.4 63.0 64.7 65.1 55.4 248.2 51.7 67.6 69.9 72.3 261.5
Sales revenues2008 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
(in EUR million)
BAUER Group 1,290.8 1,096.5 1,131.7 1,219.6 1,344.4 1,402.2 1,375.7 1,379.0 317.6 332.2 342.8 404.3 1,396.9 378.9 451.2 435.4 402.2 1,667.9 318.4 398.7 405.1 466.9 1,589.1
Construction 584.3 487.9 505.8 506.2 579.1 657.5 646.6 650.8 143.6 154.9 162.7 153.3 614.5 196.6 206.4 214.5 166.3 783.8 143.2 164.2 202.1 216.8 726.3
Equipment 601.2 456.5 469.3 511.4 520.6 561.6 532.7 548.0 107.8 115.2 123.0 196.7 542.7 126.6 185.7 168.5 180.1 660.9 128.7 173.6 144.0 193.8 640.1
Resources 105.1 152.0 156.4 201.5 244.3 182.6 195.9 179.3 65.9 61.6 56.7 54.0 238.2 55.3 57.7 53.2 55.3 221.5 46.2 60.5 58.7 55.9 221.3
EBIT2008 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
(in EUR million)
BAUER Group 167.5 84.4 88.4 82.3 72.0 30.1 76.4 90.7 9.8 13.3 21.3 25.9 70.3 8.5 30.2 27.7 23.2 89.6 11.0 23.1 22.7 43.3 100.1
Construction 46.3 25.7 28.8 17.9 22.0 21.2 26.0 13.9 4.8 2.6 10.4 12.0 29.7 0.9 12.4 8.1 -1.8 19.6 2.7 2.1 8.0 26.3 39.1
Equipment 118.3 51.3 48.3 53.0 34.0 32.2 36.0 99.4 5.8 8.8 8.0 15.8 38.4 8.0 16.0 24.9 31.7 80.6 14.2 22.2 15.8 22.7 74.9
Resources 4.0 6.0 8.1 10.9 15.2 -24.0 15.9 -19.8 -1.1 1.3 3.5 -7.6 -3.7 -0.1 0.9 -5.3 -5.5 -10.0 -5.7 -1.0 -1.2 -3.2 -11.0
EBIT margin2008 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
(in %)
BAUER Group 13.0% 7.7% 7.8% 6.7% 5.4% 2.1% 5.6% 6.6% 3.1% 4.0% 6.2% 6.4% 5.0% 2.2% 6.7% 6.4% 5.8% 5.4% 3.5% 5.8% 5.6% 9.3% 6.3%
Construction 7.9% 5.3% 5.7% 3.5% 3.8% 3.2% 4.0% 2.1% 3.3% 1.7% 6.4% 7.8% 4.8% 0.5% 6.0% 3.8% -1.1% 2.5% 1.9% 1.3% 3.9% 12.1% 5.4%
Equipment 19.7% 11.2% 10.3% 10.4% 6.5% 5.7% 6.8% 18.1% 5.4% 7.6% 6.5% 8.0% 7.1% 6.4% 8.6% 14.8% 17.6% 12.2% 11.0% 12.8% 11.0% 11.7% 11.7%
Resources 3.8% 3.9% 5.2% 5.4% 6.2% -13.1% 8.1% -11.0% -1.7% 2.1% 6.2% -14.1% -1.6% -0.2% 1.5% -10.0% -9.9% -4.5% -12.3% -1.6% -2.0% -5.7% -5.0%
© BAUER AG, D-86529 Schrobenhausen19-04-15 IR-Presentation_FY/Q4_2018 52
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.