Group Presentation FY/Q4 2019...2009/04/20 · Total Group revenues decreased by 5.4%, from EUR 1,686.1 million to EUR 1,594.7 million . EBIT fell very sharply from EUR 100.1 million
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Group Presentation FYQ4 2019April 9 2020
Foundation works for ldquoQH Trackrdquo project ndash Berlin Germany
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 2
Total Group revenues decreased by 54 from EUR 16861 million to EUR 15947 million EBIT fell very sharply from EUR 1001 million to EUR 225 million At EUR -366 million earnings after taxes were significantly in the negative range (previous year EUR 241 million)
The appeal against an arbitration court verdict led to a significant valuation allowance of about EUR 40 million in the balance sheet which consequently impacted revenues and earnings figures to a significant extent For this reason it was also not possible to keep to the covenants agreed with the banks The decline is also attributable to the markets of the Far East which were affected by a lack of orders and project postponements
The order backlog increased significantly by 14 from EUR 10136 million to EUR 10276 million
Net debt was EUR 5637 million remaining approximately at the 2018 level of EUR 5619 million This was essentially due to IFRS 16 and market valuation of financial liabilities Pure bank debt has seen further reductions
Due to coronavirus pandemic forecast 2020 is much more cautious a slight increase in total Group revenues a significant increase in EBIT as well as a significant increase in earnings after taxes in the positive area
HighlightsFY 2019 ndash BAUER GroupTotal Group revenues
EUR 1595 million(-54)
Sales revenues
EUR 1471 million(-74)
EBIT
EUR 225 million(-775)
Earnings after tax
EUR -366 million(FY 18 EUR 241 million)
Total assets
EUR 1629 million(-02)
Order backlog
EUR 1028 million(+14)
Net debt
EUR 564 million(+03)
Equity ratio
238(FY 18 265)
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Key FiguresFY 2019
FY 2018in EUR million
FY 2019in EUR million
∆ FY in
Total Group revenues of which- Germany- International- Construction- Equipment- Resources
- OtherConsolidation
168614671
12190767672312615
-661
159475187
10760668871362749
-626
-54+111-117-129
-13+51
na
Sales revenues 15891 14709 -74Order intake 17219 16087 -66Order backlog 10136 10276 +14EBITDA 1986 1230 -380EBIT 1001 225 -775EBIT margin in (of sales revenues) 63 15 naEarnings after tax 241 -366 naEarnings per share (in EUR) 132 -217 naTotal assets 16323 16285 -02Equity 4318 3869 -104Equity ratio in 265 238 naEmployees (average over the year) 11643 11684 +04
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 4
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 5
The BAUER Group is a leading provider of services equipment amp 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 servicesfor related markets
Highly innovative products and services related to water environmentand natural resources
BAUER GroupMission amp Strategy
EUR 16 billiontotal Group revenues
EUR 225 millionEBIT
15EBIT margin
238equity ratio
11684employees FY 2019
Key targets Revenue growth 3 - 8 per year
EBIT margin 7 - 9
Equity ratio gt 30
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 6
Equipment673
ConstructionOverseas433
ConstructionDomestic220
Resources269
BAUER GroupLongstanding healthy business development
1600
1000
1400
800
600
200
1200
400
1800
Note from 2003 based on IFRS figures
0
Total 1595Total Group revenuesin EUR million (segment after deducting OtherConsolidation)
1980 1984 2000 2004 200819921988 1996 2012 2016 2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
9801208
15271278 1304 1372 1436 1504 1560 1656 1555
1772 1686 1595
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
8351033
12911097 1132 1220
1344 1402 1376 1379 13971668 1589
1471
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sales revenuesin EUR million
Total Group revenuesin EUR million
7
CAGR38
BAUER GroupLongstanding healthy business development
CAGR45
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 8
Schrobenhausen
Kuala LumpurTianjinConroe
Worldwide networkMore than 110 subsidiaries in about 70 countries
Permanent OfficesConstructionEquipment salesResourcesEquipment production
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
Market few large projects in some countries
Bauer low order backlog
Latin America
Market stable markets in most Western European countries slow development in Eastern Europe Russia remains weak
Bauer good backlog in UK Netherlands and Hungary Russia weak
Europe
Market positive development inThailand Indonesia Philippines Australia Malaysia Vietnam weak stable demand in China (equipment)
Bauer major projects especially in Thailand and Philippines
Far East
Market few projects in some countries Egypt with slow growth
Bauer focus only on single projects reasonable backlog in Egypt
Africa
Market ongoing uncertainty as a result of oil price and political crisis
Bauer reasonable order backlog in UAE and Qatar major project in Jordan slight recovery in Saudi Arabia Lebanon very weak bigger projects in Bangladesh and Bhutan
Middle East amp Central Asia
Market the infrastructure market in the USA is still strong
Bauer good backlog with mainly federal projects in the USA reasonable workload in Canada
USA Canada Market good first signs of weakening growth in infrastructure expected
Bauer solid order backlog
Germany
9
BAUER GroupConstruction market environment vs order backlog
+
+
oo
+
+
+
+
-o
+
+
o+
-- weak - slightly weak o stable + growing ++ strong growthThe corona pandemic can have a significant impact on this basic market assessment Last update April 2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 10
Regional breakdownTotal Group revenues FY 2019 ndash Group
Africa 80 (5)
Americas 192 (12)
Asia-PacificFar East amp Australia266 (17)
Middle East amp Central Asia208 (13)
Germany 519 (33)
EU excl Germany 259 (16)
Europe (other)71 (4)
Africa 73 (4)
Americas 171 (10)
Asia-PacificFar East amp Australia428 (25)
Middle East amp Central Asia212 (13)
Germany 467 (28)
EU excl Germany 276 (16)
Europe (other)59 (4)
Full year 2018Total 1686in EUR million
Total 1595 in EUR million
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Regional breakdownTotal Group revenues FY 2019 ndash Segments
Construction segment Equipment segment Resources segment
Figures after deducting OtherConsolidation
Africa 50 (8)
Americas 47 (7)
Asia-Pacific Far East amp Australia85 (13)
Middle East amp Central Asia136 (21)
Germany 220 (34)
EU excl Germany 89 (13)
Europe (other)26 (4)
Africa 18 (3)
Americas 138 (20)
Asia-PacificFar East amp Australia180 (27)
Middle East amp Central Asia34 (5)
Germany 111 (16)
EU excl Germany 147 (22)
Europe (other)45 (7)
Africa 12 (4)
Americas 7 (3)
Asia-Pacific Far East amp Australia 1 (0)
Middle East amp Central Asia 38 (14)
Germany 188 (70)
EU excl Germany 23 (9)
Europe (other)0 (0)
Total 653in EUR million
Total 673 Total 269
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 12
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
379 484 429 420
381454 386 418
396409
422 450
411394 485 321
2016 2017 2018 2019
15551772 1686 1595
13971668 1589
1471
0
400
800
1200
1600
2000
2016 2017 2018 2019
1008 978 1014 1028
0
250
500
750
1000
1250
2016 2017 2018 2019
703896
1001
22514437
241
-366-50
-25
0
25
50
75
100
125
2016 2017 2018 2019
13
Q1
Q2
Q3
Q4
FinancialsRevenues earnings amp orders ndash 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
1567
+14
-661741
-54-74
∆ FY
-775na
∆ FY 1722 1609
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
231154
768669
2018 2019
547639
2018 2019
263
-207
391
-199
2018 2019
FinancialsConstruction segment ndash Highlights FY 2019
Construction
Global provider for specialist foundation engineering services
Focus on complex international projects
~ 5050 infrastructure industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues fell by 129 to EUR 6688 million compared to EUR 7676 million At EUR -199 million EBIT was markedly negative (2018 EUR 391 million) At EUR -527 million earnings after taxes were negative In 2018 positive earnings of EUR 96 million were reported
The verdict on appeal against an arbitration court verdict from 2018 resulted in a considerable valuation allowance of about EUR 40 million This had an impact of corresponding magnitude on revenues and earnings figures for the segment The decline is also attributable to the markets of the Far East and Australia which were affected by a lack of orders and project postponements
At EUR 6386 million order backlog which was 167 well above the previous years figure of EUR 5473 million is at a record level At EUR 7601 million order intake fell back by 76 from EUR 8222 million The order book lasts for 115 months
14
-129+167Full year 2019
41 of total Group revenues EBIT margin -32Key targets ~ 40 of total Group revenues (TGR) EBIT margin 4 - 6
Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 2
Total Group revenues decreased by 54 from EUR 16861 million to EUR 15947 million EBIT fell very sharply from EUR 1001 million to EUR 225 million At EUR -366 million earnings after taxes were significantly in the negative range (previous year EUR 241 million)
The appeal against an arbitration court verdict led to a significant valuation allowance of about EUR 40 million in the balance sheet which consequently impacted revenues and earnings figures to a significant extent For this reason it was also not possible to keep to the covenants agreed with the banks The decline is also attributable to the markets of the Far East which were affected by a lack of orders and project postponements
The order backlog increased significantly by 14 from EUR 10136 million to EUR 10276 million
Net debt was EUR 5637 million remaining approximately at the 2018 level of EUR 5619 million This was essentially due to IFRS 16 and market valuation of financial liabilities Pure bank debt has seen further reductions
Due to coronavirus pandemic forecast 2020 is much more cautious a slight increase in total Group revenues a significant increase in EBIT as well as a significant increase in earnings after taxes in the positive area
HighlightsFY 2019 ndash BAUER GroupTotal Group revenues
EUR 1595 million(-54)
Sales revenues
EUR 1471 million(-74)
EBIT
EUR 225 million(-775)
Earnings after tax
EUR -366 million(FY 18 EUR 241 million)
Total assets
EUR 1629 million(-02)
Order backlog
EUR 1028 million(+14)
Net debt
EUR 564 million(+03)
Equity ratio
238(FY 18 265)
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 3
Key FiguresFY 2019
FY 2018in EUR million
FY 2019in EUR million
∆ FY in
Total Group revenues of which- Germany- International- Construction- Equipment- Resources
- OtherConsolidation
168614671
12190767672312615
-661
159475187
10760668871362749
-626
-54+111-117-129
-13+51
na
Sales revenues 15891 14709 -74Order intake 17219 16087 -66Order backlog 10136 10276 +14EBITDA 1986 1230 -380EBIT 1001 225 -775EBIT margin in (of sales revenues) 63 15 naEarnings after tax 241 -366 naEarnings per share (in EUR) 132 -217 naTotal assets 16323 16285 -02Equity 4318 3869 -104Equity ratio in 265 238 naEmployees (average over the year) 11643 11684 +04
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 4
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 5
The BAUER Group is a leading provider of services equipment amp 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 servicesfor related markets
Highly innovative products and services related to water environmentand natural resources
BAUER GroupMission amp Strategy
EUR 16 billiontotal Group revenues
EUR 225 millionEBIT
15EBIT margin
238equity ratio
11684employees FY 2019
Key targets Revenue growth 3 - 8 per year
EBIT margin 7 - 9
Equity ratio gt 30
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 6
Equipment673
ConstructionOverseas433
ConstructionDomestic220
Resources269
BAUER GroupLongstanding healthy business development
1600
1000
1400
800
600
200
1200
400
1800
Note from 2003 based on IFRS figures
0
Total 1595Total Group revenuesin EUR million (segment after deducting OtherConsolidation)
1980 1984 2000 2004 200819921988 1996 2012 2016 2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
9801208
15271278 1304 1372 1436 1504 1560 1656 1555
1772 1686 1595
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
8351033
12911097 1132 1220
1344 1402 1376 1379 13971668 1589
1471
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sales revenuesin EUR million
Total Group revenuesin EUR million
7
CAGR38
BAUER GroupLongstanding healthy business development
CAGR45
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 8
Schrobenhausen
Kuala LumpurTianjinConroe
Worldwide networkMore than 110 subsidiaries in about 70 countries
Permanent OfficesConstructionEquipment salesResourcesEquipment production
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
Market few large projects in some countries
Bauer low order backlog
Latin America
Market stable markets in most Western European countries slow development in Eastern Europe Russia remains weak
Bauer good backlog in UK Netherlands and Hungary Russia weak
Europe
Market positive development inThailand Indonesia Philippines Australia Malaysia Vietnam weak stable demand in China (equipment)
Bauer major projects especially in Thailand and Philippines
Far East
Market few projects in some countries Egypt with slow growth
Bauer focus only on single projects reasonable backlog in Egypt
Africa
Market ongoing uncertainty as a result of oil price and political crisis
Bauer reasonable order backlog in UAE and Qatar major project in Jordan slight recovery in Saudi Arabia Lebanon very weak bigger projects in Bangladesh and Bhutan
Middle East amp Central Asia
Market the infrastructure market in the USA is still strong
Bauer good backlog with mainly federal projects in the USA reasonable workload in Canada
USA Canada Market good first signs of weakening growth in infrastructure expected
Bauer solid order backlog
Germany
9
BAUER GroupConstruction market environment vs order backlog
+
+
oo
+
+
+
+
-o
+
+
o+
-- weak - slightly weak o stable + growing ++ strong growthThe corona pandemic can have a significant impact on this basic market assessment Last update April 2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 10
Regional breakdownTotal Group revenues FY 2019 ndash Group
Africa 80 (5)
Americas 192 (12)
Asia-PacificFar East amp Australia266 (17)
Middle East amp Central Asia208 (13)
Germany 519 (33)
EU excl Germany 259 (16)
Europe (other)71 (4)
Africa 73 (4)
Americas 171 (10)
Asia-PacificFar East amp Australia428 (25)
Middle East amp Central Asia212 (13)
Germany 467 (28)
EU excl Germany 276 (16)
Europe (other)59 (4)
Full year 2018Total 1686in EUR million
Total 1595 in EUR million
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 11
Regional breakdownTotal Group revenues FY 2019 ndash Segments
Construction segment Equipment segment Resources segment
Figures after deducting OtherConsolidation
Africa 50 (8)
Americas 47 (7)
Asia-Pacific Far East amp Australia85 (13)
Middle East amp Central Asia136 (21)
Germany 220 (34)
EU excl Germany 89 (13)
Europe (other)26 (4)
Africa 18 (3)
Americas 138 (20)
Asia-PacificFar East amp Australia180 (27)
Middle East amp Central Asia34 (5)
Germany 111 (16)
EU excl Germany 147 (22)
Europe (other)45 (7)
Africa 12 (4)
Americas 7 (3)
Asia-Pacific Far East amp Australia 1 (0)
Middle East amp Central Asia 38 (14)
Germany 188 (70)
EU excl Germany 23 (9)
Europe (other)0 (0)
Total 653in EUR million
Total 673 Total 269
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 12
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
379 484 429 420
381454 386 418
396409
422 450
411394 485 321
2016 2017 2018 2019
15551772 1686 1595
13971668 1589
1471
0
400
800
1200
1600
2000
2016 2017 2018 2019
1008 978 1014 1028
0
250
500
750
1000
1250
2016 2017 2018 2019
703896
1001
22514437
241
-366-50
-25
0
25
50
75
100
125
2016 2017 2018 2019
13
Q1
Q2
Q3
Q4
FinancialsRevenues earnings amp orders ndash 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
1567
+14
-661741
-54-74
∆ FY
-775na
∆ FY 1722 1609
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
231154
768669
2018 2019
547639
2018 2019
263
-207
391
-199
2018 2019
FinancialsConstruction segment ndash Highlights FY 2019
Construction
Global provider for specialist foundation engineering services
Focus on complex international projects
~ 5050 infrastructure industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues fell by 129 to EUR 6688 million compared to EUR 7676 million At EUR -199 million EBIT was markedly negative (2018 EUR 391 million) At EUR -527 million earnings after taxes were negative In 2018 positive earnings of EUR 96 million were reported
The verdict on appeal against an arbitration court verdict from 2018 resulted in a considerable valuation allowance of about EUR 40 million This had an impact of corresponding magnitude on revenues and earnings figures for the segment The decline is also attributable to the markets of the Far East and Australia which were affected by a lack of orders and project postponements
At EUR 6386 million order backlog which was 167 well above the previous years figure of EUR 5473 million is at a record level At EUR 7601 million order intake fell back by 76 from EUR 8222 million The order book lasts for 115 months
14
-129+167Full year 2019
41 of total Group revenues EBIT margin -32Key targets ~ 40 of total Group revenues (TGR) EBIT margin 4 - 6
Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 3
Key FiguresFY 2019
FY 2018in EUR million
FY 2019in EUR million
∆ FY in
Total Group revenues of which- Germany- International- Construction- Equipment- Resources
- OtherConsolidation
168614671
12190767672312615
-661
159475187
10760668871362749
-626
-54+111-117-129
-13+51
na
Sales revenues 15891 14709 -74Order intake 17219 16087 -66Order backlog 10136 10276 +14EBITDA 1986 1230 -380EBIT 1001 225 -775EBIT margin in (of sales revenues) 63 15 naEarnings after tax 241 -366 naEarnings per share (in EUR) 132 -217 naTotal assets 16323 16285 -02Equity 4318 3869 -104Equity ratio in 265 238 naEmployees (average over the year) 11643 11684 +04
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 4
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 5
The BAUER Group is a leading provider of services equipment amp 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 servicesfor related markets
Highly innovative products and services related to water environmentand natural resources
BAUER GroupMission amp Strategy
EUR 16 billiontotal Group revenues
EUR 225 millionEBIT
15EBIT margin
238equity ratio
11684employees FY 2019
Key targets Revenue growth 3 - 8 per year
EBIT margin 7 - 9
Equity ratio gt 30
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 6
Equipment673
ConstructionOverseas433
ConstructionDomestic220
Resources269
BAUER GroupLongstanding healthy business development
1600
1000
1400
800
600
200
1200
400
1800
Note from 2003 based on IFRS figures
0
Total 1595Total Group revenuesin EUR million (segment after deducting OtherConsolidation)
1980 1984 2000 2004 200819921988 1996 2012 2016 2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
9801208
15271278 1304 1372 1436 1504 1560 1656 1555
1772 1686 1595
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
8351033
12911097 1132 1220
1344 1402 1376 1379 13971668 1589
1471
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sales revenuesin EUR million
Total Group revenuesin EUR million
7
CAGR38
BAUER GroupLongstanding healthy business development
CAGR45
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 8
Schrobenhausen
Kuala LumpurTianjinConroe
Worldwide networkMore than 110 subsidiaries in about 70 countries
Permanent OfficesConstructionEquipment salesResourcesEquipment production
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
Market few large projects in some countries
Bauer low order backlog
Latin America
Market stable markets in most Western European countries slow development in Eastern Europe Russia remains weak
Bauer good backlog in UK Netherlands and Hungary Russia weak
Europe
Market positive development inThailand Indonesia Philippines Australia Malaysia Vietnam weak stable demand in China (equipment)
Bauer major projects especially in Thailand and Philippines
Far East
Market few projects in some countries Egypt with slow growth
Bauer focus only on single projects reasonable backlog in Egypt
Africa
Market ongoing uncertainty as a result of oil price and political crisis
Bauer reasonable order backlog in UAE and Qatar major project in Jordan slight recovery in Saudi Arabia Lebanon very weak bigger projects in Bangladesh and Bhutan
Middle East amp Central Asia
Market the infrastructure market in the USA is still strong
Bauer good backlog with mainly federal projects in the USA reasonable workload in Canada
USA Canada Market good first signs of weakening growth in infrastructure expected
Bauer solid order backlog
Germany
9
BAUER GroupConstruction market environment vs order backlog
+
+
oo
+
+
+
+
-o
+
+
o+
-- weak - slightly weak o stable + growing ++ strong growthThe corona pandemic can have a significant impact on this basic market assessment Last update April 2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 10
Regional breakdownTotal Group revenues FY 2019 ndash Group
Africa 80 (5)
Americas 192 (12)
Asia-PacificFar East amp Australia266 (17)
Middle East amp Central Asia208 (13)
Germany 519 (33)
EU excl Germany 259 (16)
Europe (other)71 (4)
Africa 73 (4)
Americas 171 (10)
Asia-PacificFar East amp Australia428 (25)
Middle East amp Central Asia212 (13)
Germany 467 (28)
EU excl Germany 276 (16)
Europe (other)59 (4)
Full year 2018Total 1686in EUR million
Total 1595 in EUR million
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 11
Regional breakdownTotal Group revenues FY 2019 ndash Segments
Construction segment Equipment segment Resources segment
Figures after deducting OtherConsolidation
Africa 50 (8)
Americas 47 (7)
Asia-Pacific Far East amp Australia85 (13)
Middle East amp Central Asia136 (21)
Germany 220 (34)
EU excl Germany 89 (13)
Europe (other)26 (4)
Africa 18 (3)
Americas 138 (20)
Asia-PacificFar East amp Australia180 (27)
Middle East amp Central Asia34 (5)
Germany 111 (16)
EU excl Germany 147 (22)
Europe (other)45 (7)
Africa 12 (4)
Americas 7 (3)
Asia-Pacific Far East amp Australia 1 (0)
Middle East amp Central Asia 38 (14)
Germany 188 (70)
EU excl Germany 23 (9)
Europe (other)0 (0)
Total 653in EUR million
Total 673 Total 269
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 12
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
379 484 429 420
381454 386 418
396409
422 450
411394 485 321
2016 2017 2018 2019
15551772 1686 1595
13971668 1589
1471
0
400
800
1200
1600
2000
2016 2017 2018 2019
1008 978 1014 1028
0
250
500
750
1000
1250
2016 2017 2018 2019
703896
1001
22514437
241
-366-50
-25
0
25
50
75
100
125
2016 2017 2018 2019
13
Q1
Q2
Q3
Q4
FinancialsRevenues earnings amp orders ndash 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
1567
+14
-661741
-54-74
∆ FY
-775na
∆ FY 1722 1609
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
231154
768669
2018 2019
547639
2018 2019
263
-207
391
-199
2018 2019
FinancialsConstruction segment ndash Highlights FY 2019
Construction
Global provider for specialist foundation engineering services
Focus on complex international projects
~ 5050 infrastructure industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues fell by 129 to EUR 6688 million compared to EUR 7676 million At EUR -199 million EBIT was markedly negative (2018 EUR 391 million) At EUR -527 million earnings after taxes were negative In 2018 positive earnings of EUR 96 million were reported
The verdict on appeal against an arbitration court verdict from 2018 resulted in a considerable valuation allowance of about EUR 40 million This had an impact of corresponding magnitude on revenues and earnings figures for the segment The decline is also attributable to the markets of the Far East and Australia which were affected by a lack of orders and project postponements
At EUR 6386 million order backlog which was 167 well above the previous years figure of EUR 5473 million is at a record level At EUR 7601 million order intake fell back by 76 from EUR 8222 million The order book lasts for 115 months
14
-129+167Full year 2019
41 of total Group revenues EBIT margin -32Key targets ~ 40 of total Group revenues (TGR) EBIT margin 4 - 6
Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 4
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 5
The BAUER Group is a leading provider of services equipment amp 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 servicesfor related markets
Highly innovative products and services related to water environmentand natural resources
BAUER GroupMission amp Strategy
EUR 16 billiontotal Group revenues
EUR 225 millionEBIT
15EBIT margin
238equity ratio
11684employees FY 2019
Key targets Revenue growth 3 - 8 per year
EBIT margin 7 - 9
Equity ratio gt 30
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 6
Equipment673
ConstructionOverseas433
ConstructionDomestic220
Resources269
BAUER GroupLongstanding healthy business development
1600
1000
1400
800
600
200
1200
400
1800
Note from 2003 based on IFRS figures
0
Total 1595Total Group revenuesin EUR million (segment after deducting OtherConsolidation)
1980 1984 2000 2004 200819921988 1996 2012 2016 2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
9801208
15271278 1304 1372 1436 1504 1560 1656 1555
1772 1686 1595
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
8351033
12911097 1132 1220
1344 1402 1376 1379 13971668 1589
1471
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sales revenuesin EUR million
Total Group revenuesin EUR million
7
CAGR38
BAUER GroupLongstanding healthy business development
CAGR45
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 8
Schrobenhausen
Kuala LumpurTianjinConroe
Worldwide networkMore than 110 subsidiaries in about 70 countries
Permanent OfficesConstructionEquipment salesResourcesEquipment production
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
Market few large projects in some countries
Bauer low order backlog
Latin America
Market stable markets in most Western European countries slow development in Eastern Europe Russia remains weak
Bauer good backlog in UK Netherlands and Hungary Russia weak
Europe
Market positive development inThailand Indonesia Philippines Australia Malaysia Vietnam weak stable demand in China (equipment)
Bauer major projects especially in Thailand and Philippines
Far East
Market few projects in some countries Egypt with slow growth
Bauer focus only on single projects reasonable backlog in Egypt
Africa
Market ongoing uncertainty as a result of oil price and political crisis
Bauer reasonable order backlog in UAE and Qatar major project in Jordan slight recovery in Saudi Arabia Lebanon very weak bigger projects in Bangladesh and Bhutan
Middle East amp Central Asia
Market the infrastructure market in the USA is still strong
Bauer good backlog with mainly federal projects in the USA reasonable workload in Canada
USA Canada Market good first signs of weakening growth in infrastructure expected
Bauer solid order backlog
Germany
9
BAUER GroupConstruction market environment vs order backlog
+
+
oo
+
+
+
+
-o
+
+
o+
-- weak - slightly weak o stable + growing ++ strong growthThe corona pandemic can have a significant impact on this basic market assessment Last update April 2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 10
Regional breakdownTotal Group revenues FY 2019 ndash Group
Africa 80 (5)
Americas 192 (12)
Asia-PacificFar East amp Australia266 (17)
Middle East amp Central Asia208 (13)
Germany 519 (33)
EU excl Germany 259 (16)
Europe (other)71 (4)
Africa 73 (4)
Americas 171 (10)
Asia-PacificFar East amp Australia428 (25)
Middle East amp Central Asia212 (13)
Germany 467 (28)
EU excl Germany 276 (16)
Europe (other)59 (4)
Full year 2018Total 1686in EUR million
Total 1595 in EUR million
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 11
Regional breakdownTotal Group revenues FY 2019 ndash Segments
Construction segment Equipment segment Resources segment
Figures after deducting OtherConsolidation
Africa 50 (8)
Americas 47 (7)
Asia-Pacific Far East amp Australia85 (13)
Middle East amp Central Asia136 (21)
Germany 220 (34)
EU excl Germany 89 (13)
Europe (other)26 (4)
Africa 18 (3)
Americas 138 (20)
Asia-PacificFar East amp Australia180 (27)
Middle East amp Central Asia34 (5)
Germany 111 (16)
EU excl Germany 147 (22)
Europe (other)45 (7)
Africa 12 (4)
Americas 7 (3)
Asia-Pacific Far East amp Australia 1 (0)
Middle East amp Central Asia 38 (14)
Germany 188 (70)
EU excl Germany 23 (9)
Europe (other)0 (0)
Total 653in EUR million
Total 673 Total 269
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 12
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
379 484 429 420
381454 386 418
396409
422 450
411394 485 321
2016 2017 2018 2019
15551772 1686 1595
13971668 1589
1471
0
400
800
1200
1600
2000
2016 2017 2018 2019
1008 978 1014 1028
0
250
500
750
1000
1250
2016 2017 2018 2019
703896
1001
22514437
241
-366-50
-25
0
25
50
75
100
125
2016 2017 2018 2019
13
Q1
Q2
Q3
Q4
FinancialsRevenues earnings amp orders ndash 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
1567
+14
-661741
-54-74
∆ FY
-775na
∆ FY 1722 1609
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
231154
768669
2018 2019
547639
2018 2019
263
-207
391
-199
2018 2019
FinancialsConstruction segment ndash Highlights FY 2019
Construction
Global provider for specialist foundation engineering services
Focus on complex international projects
~ 5050 infrastructure industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues fell by 129 to EUR 6688 million compared to EUR 7676 million At EUR -199 million EBIT was markedly negative (2018 EUR 391 million) At EUR -527 million earnings after taxes were negative In 2018 positive earnings of EUR 96 million were reported
The verdict on appeal against an arbitration court verdict from 2018 resulted in a considerable valuation allowance of about EUR 40 million This had an impact of corresponding magnitude on revenues and earnings figures for the segment The decline is also attributable to the markets of the Far East and Australia which were affected by a lack of orders and project postponements
At EUR 6386 million order backlog which was 167 well above the previous years figure of EUR 5473 million is at a record level At EUR 7601 million order intake fell back by 76 from EUR 8222 million The order book lasts for 115 months
14
-129+167Full year 2019
41 of total Group revenues EBIT margin -32Key targets ~ 40 of total Group revenues (TGR) EBIT margin 4 - 6
Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 5
The BAUER Group is a leading provider of services equipment amp 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 servicesfor related markets
Highly innovative products and services related to water environmentand natural resources
BAUER GroupMission amp Strategy
EUR 16 billiontotal Group revenues
EUR 225 millionEBIT
15EBIT margin
238equity ratio
11684employees FY 2019
Key targets Revenue growth 3 - 8 per year
EBIT margin 7 - 9
Equity ratio gt 30
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 6
Equipment673
ConstructionOverseas433
ConstructionDomestic220
Resources269
BAUER GroupLongstanding healthy business development
1600
1000
1400
800
600
200
1200
400
1800
Note from 2003 based on IFRS figures
0
Total 1595Total Group revenuesin EUR million (segment after deducting OtherConsolidation)
1980 1984 2000 2004 200819921988 1996 2012 2016 2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
9801208
15271278 1304 1372 1436 1504 1560 1656 1555
1772 1686 1595
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
8351033
12911097 1132 1220
1344 1402 1376 1379 13971668 1589
1471
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sales revenuesin EUR million
Total Group revenuesin EUR million
7
CAGR38
BAUER GroupLongstanding healthy business development
CAGR45
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 8
Schrobenhausen
Kuala LumpurTianjinConroe
Worldwide networkMore than 110 subsidiaries in about 70 countries
Permanent OfficesConstructionEquipment salesResourcesEquipment production
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
Market few large projects in some countries
Bauer low order backlog
Latin America
Market stable markets in most Western European countries slow development in Eastern Europe Russia remains weak
Bauer good backlog in UK Netherlands and Hungary Russia weak
Europe
Market positive development inThailand Indonesia Philippines Australia Malaysia Vietnam weak stable demand in China (equipment)
Bauer major projects especially in Thailand and Philippines
Far East
Market few projects in some countries Egypt with slow growth
Bauer focus only on single projects reasonable backlog in Egypt
Africa
Market ongoing uncertainty as a result of oil price and political crisis
Bauer reasonable order backlog in UAE and Qatar major project in Jordan slight recovery in Saudi Arabia Lebanon very weak bigger projects in Bangladesh and Bhutan
Middle East amp Central Asia
Market the infrastructure market in the USA is still strong
Bauer good backlog with mainly federal projects in the USA reasonable workload in Canada
USA Canada Market good first signs of weakening growth in infrastructure expected
Bauer solid order backlog
Germany
9
BAUER GroupConstruction market environment vs order backlog
+
+
oo
+
+
+
+
-o
+
+
o+
-- weak - slightly weak o stable + growing ++ strong growthThe corona pandemic can have a significant impact on this basic market assessment Last update April 2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 10
Regional breakdownTotal Group revenues FY 2019 ndash Group
Africa 80 (5)
Americas 192 (12)
Asia-PacificFar East amp Australia266 (17)
Middle East amp Central Asia208 (13)
Germany 519 (33)
EU excl Germany 259 (16)
Europe (other)71 (4)
Africa 73 (4)
Americas 171 (10)
Asia-PacificFar East amp Australia428 (25)
Middle East amp Central Asia212 (13)
Germany 467 (28)
EU excl Germany 276 (16)
Europe (other)59 (4)
Full year 2018Total 1686in EUR million
Total 1595 in EUR million
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 11
Regional breakdownTotal Group revenues FY 2019 ndash Segments
Construction segment Equipment segment Resources segment
Figures after deducting OtherConsolidation
Africa 50 (8)
Americas 47 (7)
Asia-Pacific Far East amp Australia85 (13)
Middle East amp Central Asia136 (21)
Germany 220 (34)
EU excl Germany 89 (13)
Europe (other)26 (4)
Africa 18 (3)
Americas 138 (20)
Asia-PacificFar East amp Australia180 (27)
Middle East amp Central Asia34 (5)
Germany 111 (16)
EU excl Germany 147 (22)
Europe (other)45 (7)
Africa 12 (4)
Americas 7 (3)
Asia-Pacific Far East amp Australia 1 (0)
Middle East amp Central Asia 38 (14)
Germany 188 (70)
EU excl Germany 23 (9)
Europe (other)0 (0)
Total 653in EUR million
Total 673 Total 269
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 12
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
379 484 429 420
381454 386 418
396409
422 450
411394 485 321
2016 2017 2018 2019
15551772 1686 1595
13971668 1589
1471
0
400
800
1200
1600
2000
2016 2017 2018 2019
1008 978 1014 1028
0
250
500
750
1000
1250
2016 2017 2018 2019
703896
1001
22514437
241
-366-50
-25
0
25
50
75
100
125
2016 2017 2018 2019
13
Q1
Q2
Q3
Q4
FinancialsRevenues earnings amp orders ndash 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
1567
+14
-661741
-54-74
∆ FY
-775na
∆ FY 1722 1609
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
231154
768669
2018 2019
547639
2018 2019
263
-207
391
-199
2018 2019
FinancialsConstruction segment ndash Highlights FY 2019
Construction
Global provider for specialist foundation engineering services
Focus on complex international projects
~ 5050 infrastructure industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues fell by 129 to EUR 6688 million compared to EUR 7676 million At EUR -199 million EBIT was markedly negative (2018 EUR 391 million) At EUR -527 million earnings after taxes were negative In 2018 positive earnings of EUR 96 million were reported
The verdict on appeal against an arbitration court verdict from 2018 resulted in a considerable valuation allowance of about EUR 40 million This had an impact of corresponding magnitude on revenues and earnings figures for the segment The decline is also attributable to the markets of the Far East and Australia which were affected by a lack of orders and project postponements
At EUR 6386 million order backlog which was 167 well above the previous years figure of EUR 5473 million is at a record level At EUR 7601 million order intake fell back by 76 from EUR 8222 million The order book lasts for 115 months
14
-129+167Full year 2019
41 of total Group revenues EBIT margin -32Key targets ~ 40 of total Group revenues (TGR) EBIT margin 4 - 6
Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 6
Equipment673
ConstructionOverseas433
ConstructionDomestic220
Resources269
BAUER GroupLongstanding healthy business development
1600
1000
1400
800
600
200
1200
400
1800
Note from 2003 based on IFRS figures
0
Total 1595Total Group revenuesin EUR million (segment after deducting OtherConsolidation)
1980 1984 2000 2004 200819921988 1996 2012 2016 2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
9801208
15271278 1304 1372 1436 1504 1560 1656 1555
1772 1686 1595
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
8351033
12911097 1132 1220
1344 1402 1376 1379 13971668 1589
1471
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sales revenuesin EUR million
Total Group revenuesin EUR million
7
CAGR38
BAUER GroupLongstanding healthy business development
CAGR45
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 8
Schrobenhausen
Kuala LumpurTianjinConroe
Worldwide networkMore than 110 subsidiaries in about 70 countries
Permanent OfficesConstructionEquipment salesResourcesEquipment production
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
Market few large projects in some countries
Bauer low order backlog
Latin America
Market stable markets in most Western European countries slow development in Eastern Europe Russia remains weak
Bauer good backlog in UK Netherlands and Hungary Russia weak
Europe
Market positive development inThailand Indonesia Philippines Australia Malaysia Vietnam weak stable demand in China (equipment)
Bauer major projects especially in Thailand and Philippines
Far East
Market few projects in some countries Egypt with slow growth
Bauer focus only on single projects reasonable backlog in Egypt
Africa
Market ongoing uncertainty as a result of oil price and political crisis
Bauer reasonable order backlog in UAE and Qatar major project in Jordan slight recovery in Saudi Arabia Lebanon very weak bigger projects in Bangladesh and Bhutan
Middle East amp Central Asia
Market the infrastructure market in the USA is still strong
Bauer good backlog with mainly federal projects in the USA reasonable workload in Canada
USA Canada Market good first signs of weakening growth in infrastructure expected
Bauer solid order backlog
Germany
9
BAUER GroupConstruction market environment vs order backlog
+
+
oo
+
+
+
+
-o
+
+
o+
-- weak - slightly weak o stable + growing ++ strong growthThe corona pandemic can have a significant impact on this basic market assessment Last update April 2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 10
Regional breakdownTotal Group revenues FY 2019 ndash Group
Africa 80 (5)
Americas 192 (12)
Asia-PacificFar East amp Australia266 (17)
Middle East amp Central Asia208 (13)
Germany 519 (33)
EU excl Germany 259 (16)
Europe (other)71 (4)
Africa 73 (4)
Americas 171 (10)
Asia-PacificFar East amp Australia428 (25)
Middle East amp Central Asia212 (13)
Germany 467 (28)
EU excl Germany 276 (16)
Europe (other)59 (4)
Full year 2018Total 1686in EUR million
Total 1595 in EUR million
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 11
Regional breakdownTotal Group revenues FY 2019 ndash Segments
Construction segment Equipment segment Resources segment
Figures after deducting OtherConsolidation
Africa 50 (8)
Americas 47 (7)
Asia-Pacific Far East amp Australia85 (13)
Middle East amp Central Asia136 (21)
Germany 220 (34)
EU excl Germany 89 (13)
Europe (other)26 (4)
Africa 18 (3)
Americas 138 (20)
Asia-PacificFar East amp Australia180 (27)
Middle East amp Central Asia34 (5)
Germany 111 (16)
EU excl Germany 147 (22)
Europe (other)45 (7)
Africa 12 (4)
Americas 7 (3)
Asia-Pacific Far East amp Australia 1 (0)
Middle East amp Central Asia 38 (14)
Germany 188 (70)
EU excl Germany 23 (9)
Europe (other)0 (0)
Total 653in EUR million
Total 673 Total 269
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 12
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
379 484 429 420
381454 386 418
396409
422 450
411394 485 321
2016 2017 2018 2019
15551772 1686 1595
13971668 1589
1471
0
400
800
1200
1600
2000
2016 2017 2018 2019
1008 978 1014 1028
0
250
500
750
1000
1250
2016 2017 2018 2019
703896
1001
22514437
241
-366-50
-25
0
25
50
75
100
125
2016 2017 2018 2019
13
Q1
Q2
Q3
Q4
FinancialsRevenues earnings amp orders ndash 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
1567
+14
-661741
-54-74
∆ FY
-775na
∆ FY 1722 1609
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
231154
768669
2018 2019
547639
2018 2019
263
-207
391
-199
2018 2019
FinancialsConstruction segment ndash Highlights FY 2019
Construction
Global provider for specialist foundation engineering services
Focus on complex international projects
~ 5050 infrastructure industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues fell by 129 to EUR 6688 million compared to EUR 7676 million At EUR -199 million EBIT was markedly negative (2018 EUR 391 million) At EUR -527 million earnings after taxes were negative In 2018 positive earnings of EUR 96 million were reported
The verdict on appeal against an arbitration court verdict from 2018 resulted in a considerable valuation allowance of about EUR 40 million This had an impact of corresponding magnitude on revenues and earnings figures for the segment The decline is also attributable to the markets of the Far East and Australia which were affected by a lack of orders and project postponements
At EUR 6386 million order backlog which was 167 well above the previous years figure of EUR 5473 million is at a record level At EUR 7601 million order intake fell back by 76 from EUR 8222 million The order book lasts for 115 months
14
-129+167Full year 2019
41 of total Group revenues EBIT margin -32Key targets ~ 40 of total Group revenues (TGR) EBIT margin 4 - 6
Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
9801208
15271278 1304 1372 1436 1504 1560 1656 1555
1772 1686 1595
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
8351033
12911097 1132 1220
1344 1402 1376 1379 13971668 1589
1471
0
400
800
1200
1600
2000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sales revenuesin EUR million
Total Group revenuesin EUR million
7
CAGR38
BAUER GroupLongstanding healthy business development
CAGR45
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 8
Schrobenhausen
Kuala LumpurTianjinConroe
Worldwide networkMore than 110 subsidiaries in about 70 countries
Permanent OfficesConstructionEquipment salesResourcesEquipment production
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
Market few large projects in some countries
Bauer low order backlog
Latin America
Market stable markets in most Western European countries slow development in Eastern Europe Russia remains weak
Bauer good backlog in UK Netherlands and Hungary Russia weak
Europe
Market positive development inThailand Indonesia Philippines Australia Malaysia Vietnam weak stable demand in China (equipment)
Bauer major projects especially in Thailand and Philippines
Far East
Market few projects in some countries Egypt with slow growth
Bauer focus only on single projects reasonable backlog in Egypt
Africa
Market ongoing uncertainty as a result of oil price and political crisis
Bauer reasonable order backlog in UAE and Qatar major project in Jordan slight recovery in Saudi Arabia Lebanon very weak bigger projects in Bangladesh and Bhutan
Middle East amp Central Asia
Market the infrastructure market in the USA is still strong
Bauer good backlog with mainly federal projects in the USA reasonable workload in Canada
USA Canada Market good first signs of weakening growth in infrastructure expected
Bauer solid order backlog
Germany
9
BAUER GroupConstruction market environment vs order backlog
+
+
oo
+
+
+
+
-o
+
+
o+
-- weak - slightly weak o stable + growing ++ strong growthThe corona pandemic can have a significant impact on this basic market assessment Last update April 2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 10
Regional breakdownTotal Group revenues FY 2019 ndash Group
Africa 80 (5)
Americas 192 (12)
Asia-PacificFar East amp Australia266 (17)
Middle East amp Central Asia208 (13)
Germany 519 (33)
EU excl Germany 259 (16)
Europe (other)71 (4)
Africa 73 (4)
Americas 171 (10)
Asia-PacificFar East amp Australia428 (25)
Middle East amp Central Asia212 (13)
Germany 467 (28)
EU excl Germany 276 (16)
Europe (other)59 (4)
Full year 2018Total 1686in EUR million
Total 1595 in EUR million
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 11
Regional breakdownTotal Group revenues FY 2019 ndash Segments
Construction segment Equipment segment Resources segment
Figures after deducting OtherConsolidation
Africa 50 (8)
Americas 47 (7)
Asia-Pacific Far East amp Australia85 (13)
Middle East amp Central Asia136 (21)
Germany 220 (34)
EU excl Germany 89 (13)
Europe (other)26 (4)
Africa 18 (3)
Americas 138 (20)
Asia-PacificFar East amp Australia180 (27)
Middle East amp Central Asia34 (5)
Germany 111 (16)
EU excl Germany 147 (22)
Europe (other)45 (7)
Africa 12 (4)
Americas 7 (3)
Asia-Pacific Far East amp Australia 1 (0)
Middle East amp Central Asia 38 (14)
Germany 188 (70)
EU excl Germany 23 (9)
Europe (other)0 (0)
Total 653in EUR million
Total 673 Total 269
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 12
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
379 484 429 420
381454 386 418
396409
422 450
411394 485 321
2016 2017 2018 2019
15551772 1686 1595
13971668 1589
1471
0
400
800
1200
1600
2000
2016 2017 2018 2019
1008 978 1014 1028
0
250
500
750
1000
1250
2016 2017 2018 2019
703896
1001
22514437
241
-366-50
-25
0
25
50
75
100
125
2016 2017 2018 2019
13
Q1
Q2
Q3
Q4
FinancialsRevenues earnings amp orders ndash 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
1567
+14
-661741
-54-74
∆ FY
-775na
∆ FY 1722 1609
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
231154
768669
2018 2019
547639
2018 2019
263
-207
391
-199
2018 2019
FinancialsConstruction segment ndash Highlights FY 2019
Construction
Global provider for specialist foundation engineering services
Focus on complex international projects
~ 5050 infrastructure industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues fell by 129 to EUR 6688 million compared to EUR 7676 million At EUR -199 million EBIT was markedly negative (2018 EUR 391 million) At EUR -527 million earnings after taxes were negative In 2018 positive earnings of EUR 96 million were reported
The verdict on appeal against an arbitration court verdict from 2018 resulted in a considerable valuation allowance of about EUR 40 million This had an impact of corresponding magnitude on revenues and earnings figures for the segment The decline is also attributable to the markets of the Far East and Australia which were affected by a lack of orders and project postponements
At EUR 6386 million order backlog which was 167 well above the previous years figure of EUR 5473 million is at a record level At EUR 7601 million order intake fell back by 76 from EUR 8222 million The order book lasts for 115 months
14
-129+167Full year 2019
41 of total Group revenues EBIT margin -32Key targets ~ 40 of total Group revenues (TGR) EBIT margin 4 - 6
Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 8
Schrobenhausen
Kuala LumpurTianjinConroe
Worldwide networkMore than 110 subsidiaries in about 70 countries
Permanent OfficesConstructionEquipment salesResourcesEquipment production
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
Market few large projects in some countries
Bauer low order backlog
Latin America
Market stable markets in most Western European countries slow development in Eastern Europe Russia remains weak
Bauer good backlog in UK Netherlands and Hungary Russia weak
Europe
Market positive development inThailand Indonesia Philippines Australia Malaysia Vietnam weak stable demand in China (equipment)
Bauer major projects especially in Thailand and Philippines
Far East
Market few projects in some countries Egypt with slow growth
Bauer focus only on single projects reasonable backlog in Egypt
Africa
Market ongoing uncertainty as a result of oil price and political crisis
Bauer reasonable order backlog in UAE and Qatar major project in Jordan slight recovery in Saudi Arabia Lebanon very weak bigger projects in Bangladesh and Bhutan
Middle East amp Central Asia
Market the infrastructure market in the USA is still strong
Bauer good backlog with mainly federal projects in the USA reasonable workload in Canada
USA Canada Market good first signs of weakening growth in infrastructure expected
Bauer solid order backlog
Germany
9
BAUER GroupConstruction market environment vs order backlog
+
+
oo
+
+
+
+
-o
+
+
o+
-- weak - slightly weak o stable + growing ++ strong growthThe corona pandemic can have a significant impact on this basic market assessment Last update April 2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 10
Regional breakdownTotal Group revenues FY 2019 ndash Group
Africa 80 (5)
Americas 192 (12)
Asia-PacificFar East amp Australia266 (17)
Middle East amp Central Asia208 (13)
Germany 519 (33)
EU excl Germany 259 (16)
Europe (other)71 (4)
Africa 73 (4)
Americas 171 (10)
Asia-PacificFar East amp Australia428 (25)
Middle East amp Central Asia212 (13)
Germany 467 (28)
EU excl Germany 276 (16)
Europe (other)59 (4)
Full year 2018Total 1686in EUR million
Total 1595 in EUR million
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 11
Regional breakdownTotal Group revenues FY 2019 ndash Segments
Construction segment Equipment segment Resources segment
Figures after deducting OtherConsolidation
Africa 50 (8)
Americas 47 (7)
Asia-Pacific Far East amp Australia85 (13)
Middle East amp Central Asia136 (21)
Germany 220 (34)
EU excl Germany 89 (13)
Europe (other)26 (4)
Africa 18 (3)
Americas 138 (20)
Asia-PacificFar East amp Australia180 (27)
Middle East amp Central Asia34 (5)
Germany 111 (16)
EU excl Germany 147 (22)
Europe (other)45 (7)
Africa 12 (4)
Americas 7 (3)
Asia-Pacific Far East amp Australia 1 (0)
Middle East amp Central Asia 38 (14)
Germany 188 (70)
EU excl Germany 23 (9)
Europe (other)0 (0)
Total 653in EUR million
Total 673 Total 269
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 12
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
379 484 429 420
381454 386 418
396409
422 450
411394 485 321
2016 2017 2018 2019
15551772 1686 1595
13971668 1589
1471
0
400
800
1200
1600
2000
2016 2017 2018 2019
1008 978 1014 1028
0
250
500
750
1000
1250
2016 2017 2018 2019
703896
1001
22514437
241
-366-50
-25
0
25
50
75
100
125
2016 2017 2018 2019
13
Q1
Q2
Q3
Q4
FinancialsRevenues earnings amp orders ndash 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
1567
+14
-661741
-54-74
∆ FY
-775na
∆ FY 1722 1609
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
231154
768669
2018 2019
547639
2018 2019
263
-207
391
-199
2018 2019
FinancialsConstruction segment ndash Highlights FY 2019
Construction
Global provider for specialist foundation engineering services
Focus on complex international projects
~ 5050 infrastructure industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues fell by 129 to EUR 6688 million compared to EUR 7676 million At EUR -199 million EBIT was markedly negative (2018 EUR 391 million) At EUR -527 million earnings after taxes were negative In 2018 positive earnings of EUR 96 million were reported
The verdict on appeal against an arbitration court verdict from 2018 resulted in a considerable valuation allowance of about EUR 40 million This had an impact of corresponding magnitude on revenues and earnings figures for the segment The decline is also attributable to the markets of the Far East and Australia which were affected by a lack of orders and project postponements
At EUR 6386 million order backlog which was 167 well above the previous years figure of EUR 5473 million is at a record level At EUR 7601 million order intake fell back by 76 from EUR 8222 million The order book lasts for 115 months
14
-129+167Full year 2019
41 of total Group revenues EBIT margin -32Key targets ~ 40 of total Group revenues (TGR) EBIT margin 4 - 6
Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
Market few large projects in some countries
Bauer low order backlog
Latin America
Market stable markets in most Western European countries slow development in Eastern Europe Russia remains weak
Bauer good backlog in UK Netherlands and Hungary Russia weak
Europe
Market positive development inThailand Indonesia Philippines Australia Malaysia Vietnam weak stable demand in China (equipment)
Bauer major projects especially in Thailand and Philippines
Far East
Market few projects in some countries Egypt with slow growth
Bauer focus only on single projects reasonable backlog in Egypt
Africa
Market ongoing uncertainty as a result of oil price and political crisis
Bauer reasonable order backlog in UAE and Qatar major project in Jordan slight recovery in Saudi Arabia Lebanon very weak bigger projects in Bangladesh and Bhutan
Middle East amp Central Asia
Market the infrastructure market in the USA is still strong
Bauer good backlog with mainly federal projects in the USA reasonable workload in Canada
USA Canada Market good first signs of weakening growth in infrastructure expected
Bauer solid order backlog
Germany
9
BAUER GroupConstruction market environment vs order backlog
+
+
oo
+
+
+
+
-o
+
+
o+
-- weak - slightly weak o stable + growing ++ strong growthThe corona pandemic can have a significant impact on this basic market assessment Last update April 2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 10
Regional breakdownTotal Group revenues FY 2019 ndash Group
Africa 80 (5)
Americas 192 (12)
Asia-PacificFar East amp Australia266 (17)
Middle East amp Central Asia208 (13)
Germany 519 (33)
EU excl Germany 259 (16)
Europe (other)71 (4)
Africa 73 (4)
Americas 171 (10)
Asia-PacificFar East amp Australia428 (25)
Middle East amp Central Asia212 (13)
Germany 467 (28)
EU excl Germany 276 (16)
Europe (other)59 (4)
Full year 2018Total 1686in EUR million
Total 1595 in EUR million
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 11
Regional breakdownTotal Group revenues FY 2019 ndash Segments
Construction segment Equipment segment Resources segment
Figures after deducting OtherConsolidation
Africa 50 (8)
Americas 47 (7)
Asia-Pacific Far East amp Australia85 (13)
Middle East amp Central Asia136 (21)
Germany 220 (34)
EU excl Germany 89 (13)
Europe (other)26 (4)
Africa 18 (3)
Americas 138 (20)
Asia-PacificFar East amp Australia180 (27)
Middle East amp Central Asia34 (5)
Germany 111 (16)
EU excl Germany 147 (22)
Europe (other)45 (7)
Africa 12 (4)
Americas 7 (3)
Asia-Pacific Far East amp Australia 1 (0)
Middle East amp Central Asia 38 (14)
Germany 188 (70)
EU excl Germany 23 (9)
Europe (other)0 (0)
Total 653in EUR million
Total 673 Total 269
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 12
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
379 484 429 420
381454 386 418
396409
422 450
411394 485 321
2016 2017 2018 2019
15551772 1686 1595
13971668 1589
1471
0
400
800
1200
1600
2000
2016 2017 2018 2019
1008 978 1014 1028
0
250
500
750
1000
1250
2016 2017 2018 2019
703896
1001
22514437
241
-366-50
-25
0
25
50
75
100
125
2016 2017 2018 2019
13
Q1
Q2
Q3
Q4
FinancialsRevenues earnings amp orders ndash 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
1567
+14
-661741
-54-74
∆ FY
-775na
∆ FY 1722 1609
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
231154
768669
2018 2019
547639
2018 2019
263
-207
391
-199
2018 2019
FinancialsConstruction segment ndash Highlights FY 2019
Construction
Global provider for specialist foundation engineering services
Focus on complex international projects
~ 5050 infrastructure industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues fell by 129 to EUR 6688 million compared to EUR 7676 million At EUR -199 million EBIT was markedly negative (2018 EUR 391 million) At EUR -527 million earnings after taxes were negative In 2018 positive earnings of EUR 96 million were reported
The verdict on appeal against an arbitration court verdict from 2018 resulted in a considerable valuation allowance of about EUR 40 million This had an impact of corresponding magnitude on revenues and earnings figures for the segment The decline is also attributable to the markets of the Far East and Australia which were affected by a lack of orders and project postponements
At EUR 6386 million order backlog which was 167 well above the previous years figure of EUR 5473 million is at a record level At EUR 7601 million order intake fell back by 76 from EUR 8222 million The order book lasts for 115 months
14
-129+167Full year 2019
41 of total Group revenues EBIT margin -32Key targets ~ 40 of total Group revenues (TGR) EBIT margin 4 - 6
Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 10
Regional breakdownTotal Group revenues FY 2019 ndash Group
Africa 80 (5)
Americas 192 (12)
Asia-PacificFar East amp Australia266 (17)
Middle East amp Central Asia208 (13)
Germany 519 (33)
EU excl Germany 259 (16)
Europe (other)71 (4)
Africa 73 (4)
Americas 171 (10)
Asia-PacificFar East amp Australia428 (25)
Middle East amp Central Asia212 (13)
Germany 467 (28)
EU excl Germany 276 (16)
Europe (other)59 (4)
Full year 2018Total 1686in EUR million
Total 1595 in EUR million
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 11
Regional breakdownTotal Group revenues FY 2019 ndash Segments
Construction segment Equipment segment Resources segment
Figures after deducting OtherConsolidation
Africa 50 (8)
Americas 47 (7)
Asia-Pacific Far East amp Australia85 (13)
Middle East amp Central Asia136 (21)
Germany 220 (34)
EU excl Germany 89 (13)
Europe (other)26 (4)
Africa 18 (3)
Americas 138 (20)
Asia-PacificFar East amp Australia180 (27)
Middle East amp Central Asia34 (5)
Germany 111 (16)
EU excl Germany 147 (22)
Europe (other)45 (7)
Africa 12 (4)
Americas 7 (3)
Asia-Pacific Far East amp Australia 1 (0)
Middle East amp Central Asia 38 (14)
Germany 188 (70)
EU excl Germany 23 (9)
Europe (other)0 (0)
Total 653in EUR million
Total 673 Total 269
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 12
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
379 484 429 420
381454 386 418
396409
422 450
411394 485 321
2016 2017 2018 2019
15551772 1686 1595
13971668 1589
1471
0
400
800
1200
1600
2000
2016 2017 2018 2019
1008 978 1014 1028
0
250
500
750
1000
1250
2016 2017 2018 2019
703896
1001
22514437
241
-366-50
-25
0
25
50
75
100
125
2016 2017 2018 2019
13
Q1
Q2
Q3
Q4
FinancialsRevenues earnings amp orders ndash 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
1567
+14
-661741
-54-74
∆ FY
-775na
∆ FY 1722 1609
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
231154
768669
2018 2019
547639
2018 2019
263
-207
391
-199
2018 2019
FinancialsConstruction segment ndash Highlights FY 2019
Construction
Global provider for specialist foundation engineering services
Focus on complex international projects
~ 5050 infrastructure industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues fell by 129 to EUR 6688 million compared to EUR 7676 million At EUR -199 million EBIT was markedly negative (2018 EUR 391 million) At EUR -527 million earnings after taxes were negative In 2018 positive earnings of EUR 96 million were reported
The verdict on appeal against an arbitration court verdict from 2018 resulted in a considerable valuation allowance of about EUR 40 million This had an impact of corresponding magnitude on revenues and earnings figures for the segment The decline is also attributable to the markets of the Far East and Australia which were affected by a lack of orders and project postponements
At EUR 6386 million order backlog which was 167 well above the previous years figure of EUR 5473 million is at a record level At EUR 7601 million order intake fell back by 76 from EUR 8222 million The order book lasts for 115 months
14
-129+167Full year 2019
41 of total Group revenues EBIT margin -32Key targets ~ 40 of total Group revenues (TGR) EBIT margin 4 - 6
Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 11
Regional breakdownTotal Group revenues FY 2019 ndash Segments
Construction segment Equipment segment Resources segment
Figures after deducting OtherConsolidation
Africa 50 (8)
Americas 47 (7)
Asia-Pacific Far East amp Australia85 (13)
Middle East amp Central Asia136 (21)
Germany 220 (34)
EU excl Germany 89 (13)
Europe (other)26 (4)
Africa 18 (3)
Americas 138 (20)
Asia-PacificFar East amp Australia180 (27)
Middle East amp Central Asia34 (5)
Germany 111 (16)
EU excl Germany 147 (22)
Europe (other)45 (7)
Africa 12 (4)
Americas 7 (3)
Asia-Pacific Far East amp Australia 1 (0)
Middle East amp Central Asia 38 (14)
Germany 188 (70)
EU excl Germany 23 (9)
Europe (other)0 (0)
Total 653in EUR million
Total 673 Total 269
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 12
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
379 484 429 420
381454 386 418
396409
422 450
411394 485 321
2016 2017 2018 2019
15551772 1686 1595
13971668 1589
1471
0
400
800
1200
1600
2000
2016 2017 2018 2019
1008 978 1014 1028
0
250
500
750
1000
1250
2016 2017 2018 2019
703896
1001
22514437
241
-366-50
-25
0
25
50
75
100
125
2016 2017 2018 2019
13
Q1
Q2
Q3
Q4
FinancialsRevenues earnings amp orders ndash 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
1567
+14
-661741
-54-74
∆ FY
-775na
∆ FY 1722 1609
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
231154
768669
2018 2019
547639
2018 2019
263
-207
391
-199
2018 2019
FinancialsConstruction segment ndash Highlights FY 2019
Construction
Global provider for specialist foundation engineering services
Focus on complex international projects
~ 5050 infrastructure industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues fell by 129 to EUR 6688 million compared to EUR 7676 million At EUR -199 million EBIT was markedly negative (2018 EUR 391 million) At EUR -527 million earnings after taxes were negative In 2018 positive earnings of EUR 96 million were reported
The verdict on appeal against an arbitration court verdict from 2018 resulted in a considerable valuation allowance of about EUR 40 million This had an impact of corresponding magnitude on revenues and earnings figures for the segment The decline is also attributable to the markets of the Far East and Australia which were affected by a lack of orders and project postponements
At EUR 6386 million order backlog which was 167 well above the previous years figure of EUR 5473 million is at a record level At EUR 7601 million order intake fell back by 76 from EUR 8222 million The order book lasts for 115 months
14
-129+167Full year 2019
41 of total Group revenues EBIT margin -32Key targets ~ 40 of total Group revenues (TGR) EBIT margin 4 - 6
Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 12
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
379 484 429 420
381454 386 418
396409
422 450
411394 485 321
2016 2017 2018 2019
15551772 1686 1595
13971668 1589
1471
0
400
800
1200
1600
2000
2016 2017 2018 2019
1008 978 1014 1028
0
250
500
750
1000
1250
2016 2017 2018 2019
703896
1001
22514437
241
-366-50
-25
0
25
50
75
100
125
2016 2017 2018 2019
13
Q1
Q2
Q3
Q4
FinancialsRevenues earnings amp orders ndash 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
1567
+14
-661741
-54-74
∆ FY
-775na
∆ FY 1722 1609
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
231154
768669
2018 2019
547639
2018 2019
263
-207
391
-199
2018 2019
FinancialsConstruction segment ndash Highlights FY 2019
Construction
Global provider for specialist foundation engineering services
Focus on complex international projects
~ 5050 infrastructure industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues fell by 129 to EUR 6688 million compared to EUR 7676 million At EUR -199 million EBIT was markedly negative (2018 EUR 391 million) At EUR -527 million earnings after taxes were negative In 2018 positive earnings of EUR 96 million were reported
The verdict on appeal against an arbitration court verdict from 2018 resulted in a considerable valuation allowance of about EUR 40 million This had an impact of corresponding magnitude on revenues and earnings figures for the segment The decline is also attributable to the markets of the Far East and Australia which were affected by a lack of orders and project postponements
At EUR 6386 million order backlog which was 167 well above the previous years figure of EUR 5473 million is at a record level At EUR 7601 million order intake fell back by 76 from EUR 8222 million The order book lasts for 115 months
14
-129+167Full year 2019
41 of total Group revenues EBIT margin -32Key targets ~ 40 of total Group revenues (TGR) EBIT margin 4 - 6
Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
379 484 429 420
381454 386 418
396409
422 450
411394 485 321
2016 2017 2018 2019
15551772 1686 1595
13971668 1589
1471
0
400
800
1200
1600
2000
2016 2017 2018 2019
1008 978 1014 1028
0
250
500
750
1000
1250
2016 2017 2018 2019
703896
1001
22514437
241
-366-50
-25
0
25
50
75
100
125
2016 2017 2018 2019
13
Q1
Q2
Q3
Q4
FinancialsRevenues earnings amp orders ndash 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
1567
+14
-661741
-54-74
∆ FY
-775na
∆ FY 1722 1609
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
231154
768669
2018 2019
547639
2018 2019
263
-207
391
-199
2018 2019
FinancialsConstruction segment ndash Highlights FY 2019
Construction
Global provider for specialist foundation engineering services
Focus on complex international projects
~ 5050 infrastructure industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues fell by 129 to EUR 6688 million compared to EUR 7676 million At EUR -199 million EBIT was markedly negative (2018 EUR 391 million) At EUR -527 million earnings after taxes were negative In 2018 positive earnings of EUR 96 million were reported
The verdict on appeal against an arbitration court verdict from 2018 resulted in a considerable valuation allowance of about EUR 40 million This had an impact of corresponding magnitude on revenues and earnings figures for the segment The decline is also attributable to the markets of the Far East and Australia which were affected by a lack of orders and project postponements
At EUR 6386 million order backlog which was 167 well above the previous years figure of EUR 5473 million is at a record level At EUR 7601 million order intake fell back by 76 from EUR 8222 million The order book lasts for 115 months
14
-129+167Full year 2019
41 of total Group revenues EBIT margin -32Key targets ~ 40 of total Group revenues (TGR) EBIT margin 4 - 6
Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
231154
768669
2018 2019
547639
2018 2019
263
-207
391
-199
2018 2019
FinancialsConstruction segment ndash Highlights FY 2019
Construction
Global provider for specialist foundation engineering services
Focus on complex international projects
~ 5050 infrastructure industrialTotal Group revenuesin EUR million
Order backlogin EUR million
EBITin EUR million
Total Group revenues fell by 129 to EUR 6688 million compared to EUR 7676 million At EUR -199 million EBIT was markedly negative (2018 EUR 391 million) At EUR -527 million earnings after taxes were negative In 2018 positive earnings of EUR 96 million were reported
The verdict on appeal against an arbitration court verdict from 2018 resulted in a considerable valuation allowance of about EUR 40 million This had an impact of corresponding magnitude on revenues and earnings figures for the segment The decline is also attributable to the markets of the Far East and Australia which were affected by a lack of orders and project postponements
At EUR 6386 million order backlog which was 167 well above the previous years figure of EUR 5473 million is at a record level At EUR 7601 million order intake fell back by 76 from EUR 8222 million The order book lasts for 115 months
14
-129+167Full year 2019
41 of total Group revenues EBIT margin -32Key targets ~ 40 of total Group revenues (TGR) EBIT margin 4 - 6
Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
178 177 187 183 193176
195178
156171 185
201 211 221 227
177151
176210 231
170 172 173154
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
436 477 472 455513 551 584 591 585 575 578 585 578
526 516 493 511 507 503 547 546 551631 639
0
150
300
450
600
750
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsConstruction segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Construction
15
-333
+167
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
194 164
640 610
2018 2019
724 672
2018 2019
227
97
749
612
2018 2019
FinancialsEquipment segment ndash Highlights FY 2019
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 fell slightly by 13 from EUR 7231 million to EUR 7136
million Sales revenues also dropped by 47 from EUR 6401 million to EUR 6102 million Accordingly EBIT decreased from EUR 749 million to EUR 612 million Earnings after taxes rose slightly from EUR 340 million to EUR 395 million in particular because of a lower tax burden and lower at-equity loss compared with the previous year
In the overall very favorable market environment we succeeded in keeping revenue sales and earnings at very good levels The main drivers were once again the sales markets in Europe and China
Order intake performed less well in the second half of 2019 Overall it fell by 71 from EUR 7237 million to EUR 6721 million Order backlog was EUR 1083 million remaining significantly below the previous years level of EUR 1500 million
16
-47 -76Full year 2019 42 of total Group revenues EBIT margin 100Key targets ~ 40 of total Group revenues EBIT margin 10 - 12Key figures to be considered Sales revenues order intake EBIT
-183FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
103 115143
171
100137 129
181
108 115 123
197
127
186169 180
129
174144
194
125
180
142164
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
165 163187
162 177155 166 152 161 159 160 171
212 218
148182
227
170 160 167186 192
168
127
0
50
100
150
200
250
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsEquipment segment ndash Revenues and order development
Order intakein EUR million
Sales revenuesin EUR million
Equipment
17
-156
-239
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
72 70
261 275
2018 2019
316281
2018 2019
-32
-137-110
-1622018 2019
FinancialsResources segment ndash Highlights FY 2019
Products amp 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 increased by 51 from EUR 2615 million in the previous
year to EUR 2749 million EBIT decreased from EUR -110 million to EUR -162 million and earnings after taxes were up from EUR -160 million in the previous year to EUR -137 million primarily due to higher at-equity earnings
The segment fell short of expectations once again in 2019 While earnings from the operating business improved significantly underutilization in Jordan a weak order situation in the business with brewery and beverage technology further restructuring expenditure and adjustments for receivables from old projects primarily proved to be a burden
At the order backlog was down 113 from EUR 3165 million to EUR 2807 million The decline is essentially due to progress on the large Kesslergrube project The order intake was EUR 2391 million in 2019 and thus 13 slightly below the 2018 value of EUR 2422 million The order book lasts for 123 months
18
+51-113Full year 2019
17 of total Group revenues EBIT margin naKey targets ~ 20 of total Group revenues (TGR) EBIT margin 6 - 8Key figures to be considered TGR order backlog EBIT
FYQ4
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
48 5360
92
5448
75
44
71 67 6657 63 65 65
55 52
68 70 72 69 70 66 70
0
20
40
60
80
100
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
173 169 172 153 173 174
274 276 287 294 290 279 297 317 308336 330 321 324 316 327 322
295 281
0
75
150
225
300
375
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
FinancialsResources segment ndash Revenues and order development
Order backlogin EUR million
Total Group revenuesin EUR million
Resources
19
-32
-113
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
FinancialsWorking capital amp net debt ndash Financing of future revenues
Bauerrsquos 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 valuation adjustments on receivables were only about 4 in average over the last years
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 247 after-sales service A relatively large rental fleet is needed for different contract types (eg rental purchase)
Resources segment Outstanding customer payments (water business) and receivables on projects (environmental amp drilling business)
75-8015-20 ~5
Construction Equipment Resources20-2555-60 15-20
20
Key facts
Why does the business model needs so much working capital
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
629 608549 552
467
665 677594 562 564
0
150
300
450
600
750
2015 2016 2017 2018 2019
646 665 677594 562 564
171 185 158 183 199123
38 36
43
33
28
46
00
10
20
30
40
50
0
160
320
480
640
800
2014 2015 2016 2017 2018 2019
1656 15551772 1686 1595
665 677 594 562 564
0
360
720
1080
1440
1800
2015 2016 2017 2018 201921
FinancialsWorking capital amp net debt ndash Current development
Total Group revenues net debtin EUR million
Net debtWorking capital
EBITDANet debt
Current development At EUR 5637 million net debt was at the same level
as 2018 This was essentially due to the new IFRS 16 standard and the market valuation of financial liabilities Pure bank debt has seen further reductions which demonstrates that our numerous measures are making progress
Net debt to EBITDA ratio has worsened substantially as a consequence of significantly lower earnings than originally expected Our target range is a ratio of below 30 yearend
-37-152
∆ 20152019
Working capital net debtin EUR million
Net debt EBITDA ratioin EUR million
Net debtTotal Group revenues ndash Net debtEBITDA
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
711 720 736
604
726 701 700629 672 709 684
608674 646 628
549 576624 629
552 584 609 591
467
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
773 776 778
646
779 752 749665
743 762 736677
740 712 686594 639 678 679
562620 648 637
564
0
160
320
480
640
800
Q114 Q314 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319
22
FinancialsWorking capital amp net debt are lower year-end than during the year
Net debt (excl pensions)in EUR million
Working capitalin EUR million -154
+03
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 23
FinancialsIncome statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Sales revenues (PampL) 1589091 1470922 -74
Consolidated revenues (PampL) 1616936 1537691 -49
Cost of materials -821496 -783126 -47
Personel expenses -392384 -418805 67
Other operation expenses -204440 -212713 40
EBITDA 198616 123047 -380
Depreciation of fixed assets -80967 -84760 47
Write-downs of inventories due to use -17590 -15806 -101
EBIT 100059 22481 -775
Financial income 38204 33742 -117
Financial expenses -76992 -78766 23
Share of profitloss of associated companies (equity method) 4594 11225 na
Earnings before tax (EBT) 65865 -11318 na
Income tax expense -41778 -25232 -396
Earnings after tax 24087 -36550 na
of which attributable to shareholders of BAUER AG 22577 -37146 na
of which attributable to non-controlling interests 1510 596 -605
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 24
Financials Balance sheet December 31 2019in EUR 000 Dec 31 2018 Dec 31 2019 ∆ in Assets 1632284 1628549 -02
Non-current assets 621041 692778 116Intangible assets 18077 16946 -63Property plant and equipment and investment property 411571 460470 119Investments accounted for using the equity method 113019 118185 46Participations 8350 8806 55Other non-current assets amp deferred tax assets 70024 88371 262Current assets 1011243 935771 -75Inventories 365865 405401 108Rental equipment 60488 61838 22Less advances received on inventories -16098 -8921 -446
410255 458318 117Receivables and other assets 535111 434608 -188Effective income tax refund claims 3290 5270 602Cash and cash equivalents 62587 37575 -400
Equity and liabilities 1632284 1628549 -02
Equity 431816 386916 -104Non-current debt 501424 327118 -348Provisions for pensions 134389 158641 180Non-current liabilities amp deferred tax liabilities 367035 257977 -297Current debt 699044 914515 308Financial liabilities 286104 376453 316Other current liabilities 357851 402318 124Effective income tax obligations 31687 19566 -383Provisions 23402 26678 140
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 25
FinancialsCash flow statement 12M 2019in EUR 000 12M 2018 12M 2019 ∆ in
Cash flow from operational activity 147444 168882 145
Cash flow from investment activity -57600 -75213 306
Cash flow from financing activity -75088 -120339 603
Free Cash Flow 89844 93669 43
Changes in liquid funds affecting payments 14756 -26670 na
Influence of exchange rate movements on cash 565 1658 na
Total change in liquid funds 15321 -25012 na
Cash and cash equivalents at beginning of reporting period 47266 62587 324
Cash and cash equivalents at end of reporting period 62587 37575 -400
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 26
FinancialsForecast 2020 ndash More cautious view due to coronavirus pandemic
2019 final
Total Group Revenues 1594 EUR million slight increase
Revenue growth -54 3 - 8
EBIT 225 EUR million significant increase
EBIT margin 15 7 - 9
Earnings after tax -366 EUR million significant increase in the positive area
Equity ratio 238 gt 30
2020 forecast Long-term goal
Slope stabilisation with BG 15 ndash Germany Largest water treatment plant ndash Nimr OmanCompact cutter system for Grand Paris
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 27
BAUER AktiengesellschaftBAUER-Straszlige 186529 SchrobenhausenGermany
Tel +49 8252 97-1218investorrelationsbauerdewwwbauerde
April 9 2020 Annual Report 2019Analyst amp Press Conference
May 13 2020 Quarterly Statement Q1 2020
June 25 2020 Annual General Meeting
August 13 2020 Half-Year Interim Report toJune 30 2020
November 13 2020 Quarterly Statement 9MQ3 2020
wwwyoutubecomBauergruppe
wwwfacebookcomBauerAGgroup
Investor RelationsFinancial calendar amp contact
Christopher WolfHead of Investor Relations
2020
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 28
Table of Content
BAUER Group ndash Strategy Chances amp Markets
Appendix
Financials FYQ4 2019 amp Guidance
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 29
1790 middot 1900 middot 1902 middot 1928 middot 1948 middot 1956 middot 1958 middot 1967 middot 1969 middot 1972 middot 1975 middot 1976 middot 1984 middot 1990 middot 1992 middot 1994 middot 1998 middot 2001 middot 2019
BAUER GroupThe history ndash Two centuries of experience
End of 1970rsquosStart of
internationalisation
Early 1990rsquosBuild up of
specialist construction environmental business
FY 2019Total Group
revenues EUR 16 billion 11684
employees
4 Jul 2006IPO
Early 1970rsquosStart of equipment
manufacturing
Company founded as copper forge
After WW II (1950s)Start of construction
business
Early 1980rsquosSelling of equipment to
third parties
1790 1900-1970 1980-1990 2000-2019
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 30
Michael Stomberg (CEO) HSE IT Process Management Quality Management
Florian Bauer Digitalization Development
Coordination Training Company Culture
Hartmut Beutler (CFO) Financing amp Treasury Legal Affairs amp Insurance IR amp Corporate
Communications Facility Management Media Design
Peter Hingott Group Controlling amp
Accounting Human Resources Group Purchasing
Management BoardBAUER AG
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 31
BAUER GroupThe three segments
31copy 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 32
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ConstructionKey factsConstruction
Leading global provider for specialist foundation engineering
services
33
Total Group revenues (incl JV) Order backlog EBIT
~ 40 of total Group revenues EBIT margin 4 - 6
(2018 54 2019 na)
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 5050 infrastructureindustrial split
Figures are somewhat cyclical between the quarters ndash 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 34
What is specialist foundationBuilding an excavation pit
Permeation Grouting
Mixed-In-Place Method
Injection Anchor
Diaphragm andCut-off Wall
Pile Foundation
Piling Retaining Wall
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 35
What is specialist foundation used forApplications
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 36
ConstructionMunich Germany ndash Foundation works for a boarding house
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
EquipmentKey facts
Market leader in specialistfoundation equipment
Equipment
37
Sales revenues (excl JV) Order intake EBIT
~ 40 of total Group revenues EBIT margin 10 - 12
(2018 117 2019 100)
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 amp 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
(eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 38
EquipmentWhole range of products for special foundation engineering
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 39
EquipmentProduct range Deep Drilling
Joint Ventureof Bauer amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
ResourcesKey factsResources
40
Products amp 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 na 2019 na)
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 amp 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 eg 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 41
ResourcesPool of competences from a single hand
Industrial Waste Water Process amp Produced Water NORM Constructed Wetlands Modelling amp 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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 42
ResourcesWater ndash Process Water amp Water Distribution Management
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 43
ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 44
Market environment ndash GermanyGerman construction market
Source Federal Statistical Office Statistical Office Bavaria
in EUR billion
Germany2019
Employees (in 1000)
Revenues 922Building construction 508Foundation engineering 414
Orders received in EUR billion
Housebuilding 196Industrial building 363Public sectorof which
public buildings 55road building 142underground structures 105
) only companies gt 20 employees
49
108
95
39
109
65
80
88
38
49
82
77
112
132
25
Dezember 2019 2018 20192017 2018
in
89
97
302
861
4867
88
100 82
59
125
Weiszlig
Bunt
Kunterbunt
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 45
Building constructionpositive cash contribution
Specialist foundation engineeringpre-financing need
Financials Working capital needs ndash Comparison with building construction
EUR
12 24 months
Positive cash contribution
Negative cash contribution
Con
trac
t val
ue
EUR
Negative cash contribution
12 24 months
Con
trac
t val
ue
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 46
BAUER shareFacts amp Figures
Listed on Frankfurt stock exchange (Prime Standard) since July 4 2006
Share capital EUR 7300142045
Shares issued 17131000
Issue price EUR 1675
Share performance (012019 ndash 032020)
Bauer familyFree float
5181
Shareholder structure
4819
in EUR 2015 2016 2017 2018 2019
Earnings per share 173 066 016 132 -217
Share price year end 1740 1140 3000 1216 1510
Share price highest 1920 1716 3096 3125 2430
Share price lowest 1385 945 1172 1208 1262
Market Cap(in EUR million) 2981 1953 5139 2083 2587
CDAXClassic All SharePrime All Share
ISIN DE0005168108Reuters B5AGDEBloomberg B5A GR
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
050
100 100
060 060050
030
001
015 015010 010 010
001000
030
060
090
120
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
47
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 companyrsquos 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
000
Proposed subject to the consent of the Annual General Meeting to be held on June 25 2020
000
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 48
Key Figures Time LineFY 2008 ndash FY 2019
In all three segments total Group revenues and EBIT figures of FY 2015 were influenced by exceptional earnings
Total Group revenues 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 15272 12758 13040 13718 14358 15042 15602 16564 15547 4482 4541 4766 3931 17720 3708 4215 4435 4503 16861 4109 4207 4078 3553 15947
Construction 7009 5700 6154 6066 6552 7417 7256 7429 7131 2110 2205 2269 1766 8350 1508 1762 2100 2306 7676 1702 1722 1726 1538 6688Equipment 7801 6085 5817 6365 5891 6286 6392 7531 6344 1867 1853 1966 1859 7545 1808 1936 1802 1685 7231 1859 1950 1781 1547 7137Resources 1351 1743 1777 2115 2628 1889 2528 2216 2624 630 647 651 554 2482 517 676 699 723 2615 692 695 662 700 2749
Sales revenues 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 12908 10965 11317 12196 13444 14022 13757 13790 13969 3789 4512 4354 4022 16679 3184 3987 4051 4669 15891 3419 4035 3622 3633 14709
Construction 5843 4879 5058 5062 5791 6575 6466 6508 6145 1966 2064 2145 1663 7838 1432 1642 2021 2168 7263 1616 1628 1605 1408 6257Equipment 6012 4565 4693 5114 5206 5616 5327 5480 5427 1266 1857 1685 1801 6609 1287 1736 1440 1938 6401 1253 1797 1417 1635 6102Resources 1051 1520 1564 2015 2443 1826 1959 1793 2382 553 577 532 553 2215 462 605 587 559 2213 548 607 597 583 2335
EBIT 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 1675 844 884 823 720 301 764 907 703 85 302 277 232 896 110 231 227 433 1001 104 248 133 -260 225
Construction 463 257 288 179 220 212 260 139 297 09 124 81 -18 196 27 21 80 263 391 00 42 -34 -207 -199Equipment 1183 513 483 530 340 322 360 994 384 80 160 249 317 806 142 222 158 227 749 83 230 202 97 612Resources 40 60 81 109 152 -240 159 -198 -37 -01 09 -53 -55 -100 -57 -10 -12 -32 -110 27 -22 -30 -137 -162
EBIT margin 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in )BAUER Group 130 77 78 67 54 21 56 66 50 22 67 64 58 54 35 58 56 93 63 30 61 37 -72 15
Construction 79 53 57 35 38 32 40 21 48 05 60 38 -11 25 19 13 39 121 54 00 26 -21 -147 -32Equipment 197 112 103 104 65 57 68 181 71 64 86 148 176 122 110 128 110 117 117 66 128 143 60 100Resources 38 39 52 54 62 -131 81 -110 -16 -02 15 -100 -99 -45 -123 -16 -20 -57 -50 49 -37 -49 -235 -69
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 49
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
- Foliennummer 1
- Foliennummer 2
- Key FiguresFY 2019
- Table of Content
- Foliennummer 5
- Foliennummer 6
- Foliennummer 7
- Foliennummer 8
- BAUER Group Construction market environment vs order backlog
- Foliennummer 10
- Foliennummer 11
- Table of Content
- Foliennummer 13
- Foliennummer 14
- Foliennummer 15
- Foliennummer 16
- Foliennummer 17
- Foliennummer 18
- Foliennummer 19
- Foliennummer 20
- Foliennummer 21
- Foliennummer 22
- FinancialsIncome statement 12M 2019
- Financials Balance sheet December 31 2019
- FinancialsCash flow statement 12M 2019
- Foliennummer 26
- Foliennummer 27
- Table of Content
- BAUER GroupThe history ndash Two centuries of experience
- Foliennummer 30
- BAUER GroupThe three segments
- Foliennummer 32
- Foliennummer 33
- What is specialist foundationBuilding an excavation pit
- What is specialist foundation used forApplications
- ConstructionMunich Germany ndash Foundation works for a boarding house
- Foliennummer 37
- EquipmentWhole range of products for special foundation engineering
- EquipmentProduct range Deep Drilling
- Foliennummer 40
- ResourcesPool of competences from a single hand
- ResourcesWater ndash Process Water amp Water Distribution Management
- ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
- Market environment ndash Germany German construction market
- Financials Working capital needs ndash Comparison with building construction
- BAUER shareFacts amp Figures
- BAUER shareDividend policy
- Foliennummer 48
- Disclaimer
| Zweistelliges Auftragsplus am Bau in Bayern | |||||||||||||||||||||||||||||||||||||
| Absolute Werte | Veraumlnderungen in | ||||||||||||||||||||||||||||||||||||
| August 2006 | 2004 | Bayern | Westdeutschland | Ostdeutschland | |||||||||||||||||||||||||||||||||
| Bayern | West- | Ost- | 2004 | 2004 | 0 | 2004 | 2004 | 0 | 2004 | 2004 | 0 | ||||||||||||||||||||||||||
| Laumlnder | Laumlnder | 1994 | 2003 | 0 | 1994 | 2003 | 0 | 1994 | 2003 | 0 | |||||||||||||||||||||||||||
| Beschaumlftigte in 1000 | 1261 | 5283 | 1887 | -52 | -52 | 00 | -432 | -60 | -52 | 00 | -539 | -72 | 00 | ||||||||||||||||||||||||
| Baugenehmigungen Mio msup3 umb Raum | 653 | 2572 | 423 | -108 | -108 | 00 | -252 | -84 | 00 | -68 | -103 | 00 | |||||||||||||||||||||||||
| Umsatz in Mrd EUR | 139 | 570 | 173 | -249 | -58 | 00 | -277 | -45 | 00 | -399 | -76 | 00 | |||||||||||||||||||||||||
| Hochbau | 96 | 371 | 92 | -265 | -56 | 00 | -301 | -44 | 00 | -507 | -74 | 00 | |||||||||||||||||||||||||
| Tiefbau | 43 | 199 | 81 | -217 | -62 | 00 | -222 | -45 | 00 | -207 | -79 | 00 | |||||||||||||||||||||||||
| 0 | 90 | 337 | 99 | -393 | -100 | 00 | -452 | -56 | 00 | -580 | -60 | 00 | |||||||||||||||||||||||||
| in Mrd EUR | |||||||||||||||||||||||||||||||||||||
| Wohnungsbau | 23 | 65 | 11 | -480 | -71 | 00 | -561 | -64 | 00 | -771 | -207 | 00 | |||||||||||||||||||||||||
| Wirtschaftsbau | 33 | 140 | 40 | -347 | -105 | 00 | -457 | -59 | 00 | -603 | -94 | 00 | |||||||||||||||||||||||||
| Oumlffentlicher Bau | 33 | 131 | 48 | -352 | -115 | 00 | -346 | -49 | 00 | -382 | 18 | 00 | |||||||||||||||||||||||||
| darunter | |||||||||||||||||||||||||||||||||||||
| Oumlffentl Hochbau | 09 | 25 | 09 | -324 | -85 | 00 | -480 | -01 | 00 | -561 | 69 | 00 | |||||||||||||||||||||||||
| Straszligenbau | 12 | 58 | 21 | -128 | -112 | 00 | -146 | -51 | 00 | -160 | 42 | 00 | |||||||||||||||||||||||||
| Sonstiger Tiefbau | 12 | 48 | 18 | -502 | -137 | 00 | -425 | -71 | 00 | -467 | -34 | 00 | |||||||||||||||||||||||||
| 197 | 1256 | 1362 | 168 | -243 | -95 | 248 | -173 | -23 | 210 | -21 | 146 | ||||||||||||||||||||||||||
| 1) Bei Baugenehmigungen liegen erst die Oktoberwerte vor | |||||||||||||||||||||||||||||||||||||
| 1) Bei Baugenehmigungen liegen erst die Februarwerte vor | |||||||||||||||||||||||||||||||||||||
| 2) Nur Betriebe von Unternehmen mit 20 und mehr Beschaumlftigten |
| in EUR billion | in | ||||||||||||||||
| Dezember 2019 | Germany | 2005 | 2005 | Jan - Aug | 2018 | 2019 | |||||||||||
| 2019 | 1994 | 2004 | 0605 | 2017 | 2018 | ||||||||||||
| Employees (in 1000) | 4867 | -47 | -60 | -10 | 49 | 49 | |||||||||||
| Revenues | 922 | -305 | -64 | 73 | 108 | 82 | |||||||||||
| Building construction | 508 | -318 | -61 | 100 | 95 | 77 | |||||||||||
| Foundation engineering | 414 | -280 | -71 | 12 | 125 | 88 | |||||||||||
| Orders received | 861 | -374 | 31 | 106 | 100 | 82 | |||||||||||
| in EUR billion | |||||||||||||||||
| Housebuilding | 196 | -489 | -18 | 12 | 112 | 97 | |||||||||||
| Industrial building | 363 | -303 | 68 | 181 | 132 | 89 | |||||||||||
| Public sector | 302 | -331 | 32 | 99 | 59 | 65 | |||||||||||
| of which | |||||||||||||||||
| public buildings | 55 | -238 | 127 | 290 | 25 | 109 | |||||||||||
| road building | 142 | -138 | -12 | 47 | 88 | 39 | |||||||||||
| underground structures | 105 | -495 | 15 | 22 | 38 | 80 | |||||||||||
| 1256 | 168 | -243 | -95 | -173 | -23 | ||||||||||||
| 1) Bei Baugenehmigungen liegen fuumlr West- und Ostdeutschland erst die Maumlrzwerte vor | |||||||||||||||||
| ) only companies gt 20 employees |
| Zweistelliges Auftragsplus am Bau in Bayern | |||||||||||||||||||||||||||||||||||||
| Absolute Werte | Veraumlnderungen in | ||||||||||||||||||||||||||||||||||||
| August 2006 | 2005 | Bayern | Westdeutschland | Ostdeutschland | |||||||||||||||||||||||||||||||||
| Bayern | West- | Ost- | 2005 | 2005 | Jan - Aug | 2005 | 2005 | Jan - Aug | 2005 | 2005 | Jan - Aug | ||||||||||||||||||||||||||
| Laumlnder | Laumlnder | 1994 | 2004 | 0605 | 1994 | 2004 | 0605 | 1994 | 2004 | 0605 | |||||||||||||||||||||||||||
| Beschaumlftigte in 1000 | 1261 | 5283 | 1887 | -470 | -60 | -10 | -465 | -60 | -58 | -38 | -578 | -85 | -51 | ||||||||||||||||||||||||
| Baugenehmigungen Mio msup3 umb Raum | 653 | 2572 | 423 | -395 | -101 | 249 | -417 | -41 | 171 | -680 | -157 | 259 | |||||||||||||||||||||||||
| Umsatz in Mrd EUR | 139 | 570 | 173 | -305 | -64 | 73 | -312 | -48 | 35 | -452 | -88 | 13 | |||||||||||||||||||||||||
| Hochbau | 96 | 371 | 92 | -318 | -61 | 100 | -336 | -50 | 48 | -565 | -118 | 35 | |||||||||||||||||||||||||
| Tiefbau | 43 | 199 | 81 | -280 | -71 | 12 | -255 | -43 | 11 | -247 | -51 | -14 | |||||||||||||||||||||||||
| Auftragseingang | 90 | 337 | 99 | -374 | 31 | 106 | -447 | 09 | 84 | -609 | -70 | 43 | |||||||||||||||||||||||||
| in Mrd EUR | |||||||||||||||||||||||||||||||||||||
| Wohnungsbau | 23 | 65 | 11 | -489 | -18 | 12 | -586 | -58 | 88 | -805 | -148 | 41 | |||||||||||||||||||||||||
| Wirtschaftsbau | 33 | 140 | 40 | -303 | 68 | 181 | -433 | 45 | 104 | -625 | -56 | 121 | |||||||||||||||||||||||||
| Oumlffentlicher Bau | 33 | 131 | 48 | -331 | 32 | 99 | -340 | 09 | 72 | -420 | -62 | -18 | |||||||||||||||||||||||||
| darunter | |||||||||||||||||||||||||||||||||||||
| Oumlffentl Hochbau | 09 | 25 | 09 | -238 | 127 | 290 | -500 | -38 | 142 | -602 | -93 | -51 | |||||||||||||||||||||||||
| Straszligenbau | 12 | 58 | 21 | -138 | -12 | 47 | -96 | 59 | 78 | -211 | -85 | 82 | |||||||||||||||||||||||||
| Sonstiger Tiefbau | 12 | 48 | 18 | -495 | 15 | 22 | -439 | -24 | 30 | -477 | -18 | -124 | |||||||||||||||||||||||||
| 197 | 1256 | 1362 | 168 | -243 | -95 | 248 | -173 | -23 | 210 | -21 | 146 | ||||||||||||||||||||||||||
| 1) Bei Baugenehmigungen liegen fuumlr West- und Ostdeutschland erst die Maumlrzwerte vor | |||||||||||||||||||||||||||||||||||||
| ) Nur Betriebe von Unternehmen mit 20 und mehr Beschaumlftigten |
Bunt
Kunterbunt
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 45
Building constructionpositive cash contribution
Specialist foundation engineeringpre-financing need
Financials Working capital needs ndash Comparison with building construction
EUR
12 24 months
Positive cash contribution
Negative cash contribution
Con
trac
t val
ue
EUR
Negative cash contribution
12 24 months
Con
trac
t val
ue
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 46
BAUER shareFacts amp Figures
Listed on Frankfurt stock exchange (Prime Standard) since July 4 2006
Share capital EUR 7300142045
Shares issued 17131000
Issue price EUR 1675
Share performance (012019 ndash 032020)
Bauer familyFree float
5181
Shareholder structure
4819
in EUR 2015 2016 2017 2018 2019
Earnings per share 173 066 016 132 -217
Share price year end 1740 1140 3000 1216 1510
Share price highest 1920 1716 3096 3125 2430
Share price lowest 1385 945 1172 1208 1262
Market Cap(in EUR million) 2981 1953 5139 2083 2587
CDAXClassic All SharePrime All Share
ISIN DE0005168108Reuters B5AGDEBloomberg B5A GR
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
050
100 100
060 060050
030
001
015 015010 010 010
001000
030
060
090
120
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
47
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 companyrsquos 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
000
Proposed subject to the consent of the Annual General Meeting to be held on June 25 2020
000
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 48
Key Figures Time LineFY 2008 ndash FY 2019
In all three segments total Group revenues and EBIT figures of FY 2015 were influenced by exceptional earnings
Total Group revenues 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 15272 12758 13040 13718 14358 15042 15602 16564 15547 4482 4541 4766 3931 17720 3708 4215 4435 4503 16861 4109 4207 4078 3553 15947
Construction 7009 5700 6154 6066 6552 7417 7256 7429 7131 2110 2205 2269 1766 8350 1508 1762 2100 2306 7676 1702 1722 1726 1538 6688Equipment 7801 6085 5817 6365 5891 6286 6392 7531 6344 1867 1853 1966 1859 7545 1808 1936 1802 1685 7231 1859 1950 1781 1547 7137Resources 1351 1743 1777 2115 2628 1889 2528 2216 2624 630 647 651 554 2482 517 676 699 723 2615 692 695 662 700 2749
Sales revenues 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 12908 10965 11317 12196 13444 14022 13757 13790 13969 3789 4512 4354 4022 16679 3184 3987 4051 4669 15891 3419 4035 3622 3633 14709
Construction 5843 4879 5058 5062 5791 6575 6466 6508 6145 1966 2064 2145 1663 7838 1432 1642 2021 2168 7263 1616 1628 1605 1408 6257Equipment 6012 4565 4693 5114 5206 5616 5327 5480 5427 1266 1857 1685 1801 6609 1287 1736 1440 1938 6401 1253 1797 1417 1635 6102Resources 1051 1520 1564 2015 2443 1826 1959 1793 2382 553 577 532 553 2215 462 605 587 559 2213 548 607 597 583 2335
EBIT 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 1675 844 884 823 720 301 764 907 703 85 302 277 232 896 110 231 227 433 1001 104 248 133 -260 225
Construction 463 257 288 179 220 212 260 139 297 09 124 81 -18 196 27 21 80 263 391 00 42 -34 -207 -199Equipment 1183 513 483 530 340 322 360 994 384 80 160 249 317 806 142 222 158 227 749 83 230 202 97 612Resources 40 60 81 109 152 -240 159 -198 -37 -01 09 -53 -55 -100 -57 -10 -12 -32 -110 27 -22 -30 -137 -162
EBIT margin 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in )BAUER Group 130 77 78 67 54 21 56 66 50 22 67 64 58 54 35 58 56 93 63 30 61 37 -72 15
Construction 79 53 57 35 38 32 40 21 48 05 60 38 -11 25 19 13 39 121 54 00 26 -21 -147 -32Equipment 197 112 103 104 65 57 68 181 71 64 86 148 176 122 110 128 110 117 117 66 128 143 60 100Resources 38 39 52 54 62 -131 81 -110 -16 -02 15 -100 -99 -45 -123 -16 -20 -57 -50 49 -37 -49 -235 -69
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 49
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
- Foliennummer 1
- Foliennummer 2
- Key FiguresFY 2019
- Table of Content
- Foliennummer 5
- Foliennummer 6
- Foliennummer 7
- Foliennummer 8
- BAUER Group Construction market environment vs order backlog
- Foliennummer 10
- Foliennummer 11
- Table of Content
- Foliennummer 13
- Foliennummer 14
- Foliennummer 15
- Foliennummer 16
- Foliennummer 17
- Foliennummer 18
- Foliennummer 19
- Foliennummer 20
- Foliennummer 21
- Foliennummer 22
- FinancialsIncome statement 12M 2019
- Financials Balance sheet December 31 2019
- FinancialsCash flow statement 12M 2019
- Foliennummer 26
- Foliennummer 27
- Table of Content
- BAUER GroupThe history ndash Two centuries of experience
- Foliennummer 30
- BAUER GroupThe three segments
- Foliennummer 32
- Foliennummer 33
- What is specialist foundationBuilding an excavation pit
- What is specialist foundation used forApplications
- ConstructionMunich Germany ndash Foundation works for a boarding house
- Foliennummer 37
- EquipmentWhole range of products for special foundation engineering
- EquipmentProduct range Deep Drilling
- Foliennummer 40
- ResourcesPool of competences from a single hand
- ResourcesWater ndash Process Water amp Water Distribution Management
- ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
- Market environment ndash Germany German construction market
- Financials Working capital needs ndash Comparison with building construction
- BAUER shareFacts amp Figures
- BAUER shareDividend policy
- Foliennummer 48
- Disclaimer
| Zweistelliges Auftragsplus am Bau in Bayern | |||||||||||||||||||||||||||||||||||||
| Absolute Werte | Veraumlnderungen in | ||||||||||||||||||||||||||||||||||||
| August 2006 | 2004 | Bayern | Westdeutschland | Ostdeutschland | |||||||||||||||||||||||||||||||||
| Bayern | West- | Ost- | 2004 | 2004 | 0 | 2004 | 2004 | 0 | 2004 | 2004 | 0 | ||||||||||||||||||||||||||
| Laumlnder | Laumlnder | 1994 | 2003 | 0 | 1994 | 2003 | 0 | 1994 | 2003 | 0 | |||||||||||||||||||||||||||
| Beschaumlftigte in 1000 | 1261 | 5283 | 1887 | -52 | -52 | 00 | -432 | -60 | -52 | 00 | -539 | -72 | 00 | ||||||||||||||||||||||||
| Baugenehmigungen Mio msup3 umb Raum | 653 | 2572 | 423 | -108 | -108 | 00 | -252 | -84 | 00 | -68 | -103 | 00 | |||||||||||||||||||||||||
| Umsatz in Mrd EUR | 139 | 570 | 173 | -249 | -58 | 00 | -277 | -45 | 00 | -399 | -76 | 00 | |||||||||||||||||||||||||
| Hochbau | 96 | 371 | 92 | -265 | -56 | 00 | -301 | -44 | 00 | -507 | -74 | 00 | |||||||||||||||||||||||||
| Tiefbau | 43 | 199 | 81 | -217 | -62 | 00 | -222 | -45 | 00 | -207 | -79 | 00 | |||||||||||||||||||||||||
| 0 | 90 | 337 | 99 | -393 | -100 | 00 | -452 | -56 | 00 | -580 | -60 | 00 | |||||||||||||||||||||||||
| in Mrd EUR | |||||||||||||||||||||||||||||||||||||
| Wohnungsbau | 23 | 65 | 11 | -480 | -71 | 00 | -561 | -64 | 00 | -771 | -207 | 00 | |||||||||||||||||||||||||
| Wirtschaftsbau | 33 | 140 | 40 | -347 | -105 | 00 | -457 | -59 | 00 | -603 | -94 | 00 | |||||||||||||||||||||||||
| Oumlffentlicher Bau | 33 | 131 | 48 | -352 | -115 | 00 | -346 | -49 | 00 | -382 | 18 | 00 | |||||||||||||||||||||||||
| darunter | |||||||||||||||||||||||||||||||||||||
| Oumlffentl Hochbau | 09 | 25 | 09 | -324 | -85 | 00 | -480 | -01 | 00 | -561 | 69 | 00 | |||||||||||||||||||||||||
| Straszligenbau | 12 | 58 | 21 | -128 | -112 | 00 | -146 | -51 | 00 | -160 | 42 | 00 | |||||||||||||||||||||||||
| Sonstiger Tiefbau | 12 | 48 | 18 | -502 | -137 | 00 | -425 | -71 | 00 | -467 | -34 | 00 | |||||||||||||||||||||||||
| 197 | 1256 | 1362 | 168 | -243 | -95 | 248 | -173 | -23 | 210 | -21 | 146 | ||||||||||||||||||||||||||
| 1) Bei Baugenehmigungen liegen erst die Oktoberwerte vor | |||||||||||||||||||||||||||||||||||||
| 1) Bei Baugenehmigungen liegen erst die Februarwerte vor | |||||||||||||||||||||||||||||||||||||
| 2) Nur Betriebe von Unternehmen mit 20 und mehr Beschaumlftigten |
| in EUR billion | in | ||||||||||||||||
| Dezember 2019 | Germany | 2005 | 2005 | Jan - Aug | 2018 | 2019 | |||||||||||
| 2019 | 1994 | 2004 | 0605 | 2017 | 2018 | ||||||||||||
| Employees (in 1000) | 4867 | -47 | -60 | -10 | 49 | 49 | |||||||||||
| Revenues | 922 | -305 | -64 | 73 | 108 | 82 | |||||||||||
| Building construction | 508 | -318 | -61 | 100 | 95 | 77 | |||||||||||
| Foundation engineering | 414 | -280 | -71 | 12 | 125 | 88 | |||||||||||
| Orders received | 861 | -374 | 31 | 106 | 100 | 82 | |||||||||||
| in EUR billion | |||||||||||||||||
| Housebuilding | 196 | -489 | -18 | 12 | 112 | 97 | |||||||||||
| Industrial building | 363 | -303 | 68 | 181 | 132 | 89 | |||||||||||
| Public sector | 302 | -331 | 32 | 99 | 59 | 65 | |||||||||||
| of which | |||||||||||||||||
| public buildings | 55 | -238 | 127 | 290 | 25 | 109 | |||||||||||
| road building | 142 | -138 | -12 | 47 | 88 | 39 | |||||||||||
| underground structures | 105 | -495 | 15 | 22 | 38 | 80 | |||||||||||
| 1256 | 168 | -243 | -95 | -173 | -23 | ||||||||||||
| 1) Bei Baugenehmigungen liegen fuumlr West- und Ostdeutschland erst die Maumlrzwerte vor | |||||||||||||||||
| ) only companies gt 20 employees |
Kunterbunt
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 45
Building constructionpositive cash contribution
Specialist foundation engineeringpre-financing need
Financials Working capital needs ndash Comparison with building construction
EUR
12 24 months
Positive cash contribution
Negative cash contribution
Con
trac
t val
ue
EUR
Negative cash contribution
12 24 months
Con
trac
t val
ue
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 46
BAUER shareFacts amp Figures
Listed on Frankfurt stock exchange (Prime Standard) since July 4 2006
Share capital EUR 7300142045
Shares issued 17131000
Issue price EUR 1675
Share performance (012019 ndash 032020)
Bauer familyFree float
5181
Shareholder structure
4819
in EUR 2015 2016 2017 2018 2019
Earnings per share 173 066 016 132 -217
Share price year end 1740 1140 3000 1216 1510
Share price highest 1920 1716 3096 3125 2430
Share price lowest 1385 945 1172 1208 1262
Market Cap(in EUR million) 2981 1953 5139 2083 2587
CDAXClassic All SharePrime All Share
ISIN DE0005168108Reuters B5AGDEBloomberg B5A GR
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
050
100 100
060 060050
030
001
015 015010 010 010
001000
030
060
090
120
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
47
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 companyrsquos 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
000
Proposed subject to the consent of the Annual General Meeting to be held on June 25 2020
000
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 48
Key Figures Time LineFY 2008 ndash FY 2019
In all three segments total Group revenues and EBIT figures of FY 2015 were influenced by exceptional earnings
Total Group revenues 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 15272 12758 13040 13718 14358 15042 15602 16564 15547 4482 4541 4766 3931 17720 3708 4215 4435 4503 16861 4109 4207 4078 3553 15947
Construction 7009 5700 6154 6066 6552 7417 7256 7429 7131 2110 2205 2269 1766 8350 1508 1762 2100 2306 7676 1702 1722 1726 1538 6688Equipment 7801 6085 5817 6365 5891 6286 6392 7531 6344 1867 1853 1966 1859 7545 1808 1936 1802 1685 7231 1859 1950 1781 1547 7137Resources 1351 1743 1777 2115 2628 1889 2528 2216 2624 630 647 651 554 2482 517 676 699 723 2615 692 695 662 700 2749
Sales revenues 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 12908 10965 11317 12196 13444 14022 13757 13790 13969 3789 4512 4354 4022 16679 3184 3987 4051 4669 15891 3419 4035 3622 3633 14709
Construction 5843 4879 5058 5062 5791 6575 6466 6508 6145 1966 2064 2145 1663 7838 1432 1642 2021 2168 7263 1616 1628 1605 1408 6257Equipment 6012 4565 4693 5114 5206 5616 5327 5480 5427 1266 1857 1685 1801 6609 1287 1736 1440 1938 6401 1253 1797 1417 1635 6102Resources 1051 1520 1564 2015 2443 1826 1959 1793 2382 553 577 532 553 2215 462 605 587 559 2213 548 607 597 583 2335
EBIT 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 1675 844 884 823 720 301 764 907 703 85 302 277 232 896 110 231 227 433 1001 104 248 133 -260 225
Construction 463 257 288 179 220 212 260 139 297 09 124 81 -18 196 27 21 80 263 391 00 42 -34 -207 -199Equipment 1183 513 483 530 340 322 360 994 384 80 160 249 317 806 142 222 158 227 749 83 230 202 97 612Resources 40 60 81 109 152 -240 159 -198 -37 -01 09 -53 -55 -100 -57 -10 -12 -32 -110 27 -22 -30 -137 -162
EBIT margin 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in )BAUER Group 130 77 78 67 54 21 56 66 50 22 67 64 58 54 35 58 56 93 63 30 61 37 -72 15
Construction 79 53 57 35 38 32 40 21 48 05 60 38 -11 25 19 13 39 121 54 00 26 -21 -147 -32Equipment 197 112 103 104 65 57 68 181 71 64 86 148 176 122 110 128 110 117 117 66 128 143 60 100Resources 38 39 52 54 62 -131 81 -110 -16 -02 15 -100 -99 -45 -123 -16 -20 -57 -50 49 -37 -49 -235 -69
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 49
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
- Foliennummer 1
- Foliennummer 2
- Key FiguresFY 2019
- Table of Content
- Foliennummer 5
- Foliennummer 6
- Foliennummer 7
- Foliennummer 8
- BAUER Group Construction market environment vs order backlog
- Foliennummer 10
- Foliennummer 11
- Table of Content
- Foliennummer 13
- Foliennummer 14
- Foliennummer 15
- Foliennummer 16
- Foliennummer 17
- Foliennummer 18
- Foliennummer 19
- Foliennummer 20
- Foliennummer 21
- Foliennummer 22
- FinancialsIncome statement 12M 2019
- Financials Balance sheet December 31 2019
- FinancialsCash flow statement 12M 2019
- Foliennummer 26
- Foliennummer 27
- Table of Content
- BAUER GroupThe history ndash Two centuries of experience
- Foliennummer 30
- BAUER GroupThe three segments
- Foliennummer 32
- Foliennummer 33
- What is specialist foundationBuilding an excavation pit
- What is specialist foundation used forApplications
- ConstructionMunich Germany ndash Foundation works for a boarding house
- Foliennummer 37
- EquipmentWhole range of products for special foundation engineering
- EquipmentProduct range Deep Drilling
- Foliennummer 40
- ResourcesPool of competences from a single hand
- ResourcesWater ndash Process Water amp Water Distribution Management
- ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
- Market environment ndash Germany German construction market
- Financials Working capital needs ndash Comparison with building construction
- BAUER shareFacts amp Figures
- BAUER shareDividend policy
- Foliennummer 48
- Disclaimer
| Zweistelliges Auftragsplus am Bau in Bayern | |||||||||||||||||||||||||||||||||||||
| Absolute Werte | Veraumlnderungen in | ||||||||||||||||||||||||||||||||||||
| August 2006 | 2004 | Bayern | Westdeutschland | Ostdeutschland | |||||||||||||||||||||||||||||||||
| Bayern | West- | Ost- | 2004 | 2004 | 0 | 2004 | 2004 | 0 | 2004 | 2004 | 0 | ||||||||||||||||||||||||||
| Laumlnder | Laumlnder | 1994 | 2003 | 0 | 1994 | 2003 | 0 | 1994 | 2003 | 0 | |||||||||||||||||||||||||||
| Beschaumlftigte in 1000 | 1261 | 5283 | 1887 | -52 | -52 | 00 | -432 | -60 | -52 | 00 | -539 | -72 | 00 | ||||||||||||||||||||||||
| Baugenehmigungen Mio msup3 umb Raum | 653 | 2572 | 423 | -108 | -108 | 00 | -252 | -84 | 00 | -68 | -103 | 00 | |||||||||||||||||||||||||
| Umsatz in Mrd EUR | 139 | 570 | 173 | -249 | -58 | 00 | -277 | -45 | 00 | -399 | -76 | 00 | |||||||||||||||||||||||||
| Hochbau | 96 | 371 | 92 | -265 | -56 | 00 | -301 | -44 | 00 | -507 | -74 | 00 | |||||||||||||||||||||||||
| Tiefbau | 43 | 199 | 81 | -217 | -62 | 00 | -222 | -45 | 00 | -207 | -79 | 00 | |||||||||||||||||||||||||
| 0 | 90 | 337 | 99 | -393 | -100 | 00 | -452 | -56 | 00 | -580 | -60 | 00 | |||||||||||||||||||||||||
| in Mrd EUR | |||||||||||||||||||||||||||||||||||||
| Wohnungsbau | 23 | 65 | 11 | -480 | -71 | 00 | -561 | -64 | 00 | -771 | -207 | 00 | |||||||||||||||||||||||||
| Wirtschaftsbau | 33 | 140 | 40 | -347 | -105 | 00 | -457 | -59 | 00 | -603 | -94 | 00 | |||||||||||||||||||||||||
| Oumlffentlicher Bau | 33 | 131 | 48 | -352 | -115 | 00 | -346 | -49 | 00 | -382 | 18 | 00 | |||||||||||||||||||||||||
| darunter | |||||||||||||||||||||||||||||||||||||
| Oumlffentl Hochbau | 09 | 25 | 09 | -324 | -85 | 00 | -480 | -01 | 00 | -561 | 69 | 00 | |||||||||||||||||||||||||
| Straszligenbau | 12 | 58 | 21 | -128 | -112 | 00 | -146 | -51 | 00 | -160 | 42 | 00 | |||||||||||||||||||||||||
| Sonstiger Tiefbau | 12 | 48 | 18 | -502 | -137 | 00 | -425 | -71 | 00 | -467 | -34 | 00 | |||||||||||||||||||||||||
| 197 | 1256 | 1362 | 168 | -243 | -95 | 248 | -173 | -23 | 210 | -21 | 146 | ||||||||||||||||||||||||||
| 1) Bei Baugenehmigungen liegen erst die Oktoberwerte vor | |||||||||||||||||||||||||||||||||||||
| 1) Bei Baugenehmigungen liegen erst die Februarwerte vor | |||||||||||||||||||||||||||||||||||||
| 2) Nur Betriebe von Unternehmen mit 20 und mehr Beschaumlftigten |
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 45
Building constructionpositive cash contribution
Specialist foundation engineeringpre-financing need
Financials Working capital needs ndash Comparison with building construction
EUR
12 24 months
Positive cash contribution
Negative cash contribution
Con
trac
t val
ue
EUR
Negative cash contribution
12 24 months
Con
trac
t val
ue
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
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 46
BAUER shareFacts amp Figures
Listed on Frankfurt stock exchange (Prime Standard) since July 4 2006
Share capital EUR 7300142045
Shares issued 17131000
Issue price EUR 1675
Share performance (012019 ndash 032020)
Bauer familyFree float
5181
Shareholder structure
4819
in EUR 2015 2016 2017 2018 2019
Earnings per share 173 066 016 132 -217
Share price year end 1740 1140 3000 1216 1510
Share price highest 1920 1716 3096 3125 2430
Share price lowest 1385 945 1172 1208 1262
Market Cap(in EUR million) 2981 1953 5139 2083 2587
CDAXClassic All SharePrime All Share
ISIN DE0005168108Reuters B5AGDEBloomberg B5A GR
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
050
100 100
060 060050
030
001
015 015010 010 010
001000
030
060
090
120
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
47
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 companyrsquos 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
000
Proposed subject to the consent of the Annual General Meeting to be held on June 25 2020
000
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 48
Key Figures Time LineFY 2008 ndash FY 2019
In all three segments total Group revenues and EBIT figures of FY 2015 were influenced by exceptional earnings
Total Group revenues 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 15272 12758 13040 13718 14358 15042 15602 16564 15547 4482 4541 4766 3931 17720 3708 4215 4435 4503 16861 4109 4207 4078 3553 15947
Construction 7009 5700 6154 6066 6552 7417 7256 7429 7131 2110 2205 2269 1766 8350 1508 1762 2100 2306 7676 1702 1722 1726 1538 6688Equipment 7801 6085 5817 6365 5891 6286 6392 7531 6344 1867 1853 1966 1859 7545 1808 1936 1802 1685 7231 1859 1950 1781 1547 7137Resources 1351 1743 1777 2115 2628 1889 2528 2216 2624 630 647 651 554 2482 517 676 699 723 2615 692 695 662 700 2749
Sales revenues 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 12908 10965 11317 12196 13444 14022 13757 13790 13969 3789 4512 4354 4022 16679 3184 3987 4051 4669 15891 3419 4035 3622 3633 14709
Construction 5843 4879 5058 5062 5791 6575 6466 6508 6145 1966 2064 2145 1663 7838 1432 1642 2021 2168 7263 1616 1628 1605 1408 6257Equipment 6012 4565 4693 5114 5206 5616 5327 5480 5427 1266 1857 1685 1801 6609 1287 1736 1440 1938 6401 1253 1797 1417 1635 6102Resources 1051 1520 1564 2015 2443 1826 1959 1793 2382 553 577 532 553 2215 462 605 587 559 2213 548 607 597 583 2335
EBIT 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 1675 844 884 823 720 301 764 907 703 85 302 277 232 896 110 231 227 433 1001 104 248 133 -260 225
Construction 463 257 288 179 220 212 260 139 297 09 124 81 -18 196 27 21 80 263 391 00 42 -34 -207 -199Equipment 1183 513 483 530 340 322 360 994 384 80 160 249 317 806 142 222 158 227 749 83 230 202 97 612Resources 40 60 81 109 152 -240 159 -198 -37 -01 09 -53 -55 -100 -57 -10 -12 -32 -110 27 -22 -30 -137 -162
EBIT margin 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in )BAUER Group 130 77 78 67 54 21 56 66 50 22 67 64 58 54 35 58 56 93 63 30 61 37 -72 15
Construction 79 53 57 35 38 32 40 21 48 05 60 38 -11 25 19 13 39 121 54 00 26 -21 -147 -32Equipment 197 112 103 104 65 57 68 181 71 64 86 148 176 122 110 128 110 117 117 66 128 143 60 100Resources 38 39 52 54 62 -131 81 -110 -16 -02 15 -100 -99 -45 -123 -16 -20 -57 -50 49 -37 -49 -235 -69
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 49
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
- Foliennummer 1
- Foliennummer 2
- Key FiguresFY 2019
- Table of Content
- Foliennummer 5
- Foliennummer 6
- Foliennummer 7
- Foliennummer 8
- BAUER Group Construction market environment vs order backlog
- Foliennummer 10
- Foliennummer 11
- Table of Content
- Foliennummer 13
- Foliennummer 14
- Foliennummer 15
- Foliennummer 16
- Foliennummer 17
- Foliennummer 18
- Foliennummer 19
- Foliennummer 20
- Foliennummer 21
- Foliennummer 22
- FinancialsIncome statement 12M 2019
- Financials Balance sheet December 31 2019
- FinancialsCash flow statement 12M 2019
- Foliennummer 26
- Foliennummer 27
- Table of Content
- BAUER GroupThe history ndash Two centuries of experience
- Foliennummer 30
- BAUER GroupThe three segments
- Foliennummer 32
- Foliennummer 33
- What is specialist foundationBuilding an excavation pit
- What is specialist foundation used forApplications
- ConstructionMunich Germany ndash Foundation works for a boarding house
- Foliennummer 37
- EquipmentWhole range of products for special foundation engineering
- EquipmentProduct range Deep Drilling
- Foliennummer 40
- ResourcesPool of competences from a single hand
- ResourcesWater ndash Process Water amp Water Distribution Management
- ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
- Market environment ndash Germany German construction market
- Financials Working capital needs ndash Comparison with building construction
- BAUER shareFacts amp Figures
- BAUER shareDividend policy
- Foliennummer 48
- Disclaimer
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 46
BAUER shareFacts amp Figures
Listed on Frankfurt stock exchange (Prime Standard) since July 4 2006
Share capital EUR 7300142045
Shares issued 17131000
Issue price EUR 1675
Share performance (012019 ndash 032020)
Bauer familyFree float
5181
Shareholder structure
4819
in EUR 2015 2016 2017 2018 2019
Earnings per share 173 066 016 132 -217
Share price year end 1740 1140 3000 1216 1510
Share price highest 1920 1716 3096 3125 2430
Share price lowest 1385 945 1172 1208 1262
Market Cap(in EUR million) 2981 1953 5139 2083 2587
CDAXClassic All SharePrime All Share
ISIN DE0005168108Reuters B5AGDEBloomberg B5A GR
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
050
100 100
060 060050
030
001
015 015010 010 010
001000
030
060
090
120
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
47
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 companyrsquos 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
000
Proposed subject to the consent of the Annual General Meeting to be held on June 25 2020
000
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 48
Key Figures Time LineFY 2008 ndash FY 2019
In all three segments total Group revenues and EBIT figures of FY 2015 were influenced by exceptional earnings
Total Group revenues 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 15272 12758 13040 13718 14358 15042 15602 16564 15547 4482 4541 4766 3931 17720 3708 4215 4435 4503 16861 4109 4207 4078 3553 15947
Construction 7009 5700 6154 6066 6552 7417 7256 7429 7131 2110 2205 2269 1766 8350 1508 1762 2100 2306 7676 1702 1722 1726 1538 6688Equipment 7801 6085 5817 6365 5891 6286 6392 7531 6344 1867 1853 1966 1859 7545 1808 1936 1802 1685 7231 1859 1950 1781 1547 7137Resources 1351 1743 1777 2115 2628 1889 2528 2216 2624 630 647 651 554 2482 517 676 699 723 2615 692 695 662 700 2749
Sales revenues 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 12908 10965 11317 12196 13444 14022 13757 13790 13969 3789 4512 4354 4022 16679 3184 3987 4051 4669 15891 3419 4035 3622 3633 14709
Construction 5843 4879 5058 5062 5791 6575 6466 6508 6145 1966 2064 2145 1663 7838 1432 1642 2021 2168 7263 1616 1628 1605 1408 6257Equipment 6012 4565 4693 5114 5206 5616 5327 5480 5427 1266 1857 1685 1801 6609 1287 1736 1440 1938 6401 1253 1797 1417 1635 6102Resources 1051 1520 1564 2015 2443 1826 1959 1793 2382 553 577 532 553 2215 462 605 587 559 2213 548 607 597 583 2335
EBIT 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 1675 844 884 823 720 301 764 907 703 85 302 277 232 896 110 231 227 433 1001 104 248 133 -260 225
Construction 463 257 288 179 220 212 260 139 297 09 124 81 -18 196 27 21 80 263 391 00 42 -34 -207 -199Equipment 1183 513 483 530 340 322 360 994 384 80 160 249 317 806 142 222 158 227 749 83 230 202 97 612Resources 40 60 81 109 152 -240 159 -198 -37 -01 09 -53 -55 -100 -57 -10 -12 -32 -110 27 -22 -30 -137 -162
EBIT margin 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in )BAUER Group 130 77 78 67 54 21 56 66 50 22 67 64 58 54 35 58 56 93 63 30 61 37 -72 15
Construction 79 53 57 35 38 32 40 21 48 05 60 38 -11 25 19 13 39 121 54 00 26 -21 -147 -32Equipment 197 112 103 104 65 57 68 181 71 64 86 148 176 122 110 128 110 117 117 66 128 143 60 100Resources 38 39 52 54 62 -131 81 -110 -16 -02 15 -100 -99 -45 -123 -16 -20 -57 -50 49 -37 -49 -235 -69
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 49
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
- Foliennummer 1
- Foliennummer 2
- Key FiguresFY 2019
- Table of Content
- Foliennummer 5
- Foliennummer 6
- Foliennummer 7
- Foliennummer 8
- BAUER Group Construction market environment vs order backlog
- Foliennummer 10
- Foliennummer 11
- Table of Content
- Foliennummer 13
- Foliennummer 14
- Foliennummer 15
- Foliennummer 16
- Foliennummer 17
- Foliennummer 18
- Foliennummer 19
- Foliennummer 20
- Foliennummer 21
- Foliennummer 22
- FinancialsIncome statement 12M 2019
- Financials Balance sheet December 31 2019
- FinancialsCash flow statement 12M 2019
- Foliennummer 26
- Foliennummer 27
- Table of Content
- BAUER GroupThe history ndash Two centuries of experience
- Foliennummer 30
- BAUER GroupThe three segments
- Foliennummer 32
- Foliennummer 33
- What is specialist foundationBuilding an excavation pit
- What is specialist foundation used forApplications
- ConstructionMunich Germany ndash Foundation works for a boarding house
- Foliennummer 37
- EquipmentWhole range of products for special foundation engineering
- EquipmentProduct range Deep Drilling
- Foliennummer 40
- ResourcesPool of competences from a single hand
- ResourcesWater ndash Process Water amp Water Distribution Management
- ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
- Market environment ndash Germany German construction market
- Financials Working capital needs ndash Comparison with building construction
- BAUER shareFacts amp Figures
- BAUER shareDividend policy
- Foliennummer 48
- Disclaimer
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019
050
100 100
060 060050
030
001
015 015010 010 010
001000
030
060
090
120
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
47
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 companyrsquos 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
000
Proposed subject to the consent of the Annual General Meeting to be held on June 25 2020
000
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 48
Key Figures Time LineFY 2008 ndash FY 2019
In all three segments total Group revenues and EBIT figures of FY 2015 were influenced by exceptional earnings
Total Group revenues 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 15272 12758 13040 13718 14358 15042 15602 16564 15547 4482 4541 4766 3931 17720 3708 4215 4435 4503 16861 4109 4207 4078 3553 15947
Construction 7009 5700 6154 6066 6552 7417 7256 7429 7131 2110 2205 2269 1766 8350 1508 1762 2100 2306 7676 1702 1722 1726 1538 6688Equipment 7801 6085 5817 6365 5891 6286 6392 7531 6344 1867 1853 1966 1859 7545 1808 1936 1802 1685 7231 1859 1950 1781 1547 7137Resources 1351 1743 1777 2115 2628 1889 2528 2216 2624 630 647 651 554 2482 517 676 699 723 2615 692 695 662 700 2749
Sales revenues 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 12908 10965 11317 12196 13444 14022 13757 13790 13969 3789 4512 4354 4022 16679 3184 3987 4051 4669 15891 3419 4035 3622 3633 14709
Construction 5843 4879 5058 5062 5791 6575 6466 6508 6145 1966 2064 2145 1663 7838 1432 1642 2021 2168 7263 1616 1628 1605 1408 6257Equipment 6012 4565 4693 5114 5206 5616 5327 5480 5427 1266 1857 1685 1801 6609 1287 1736 1440 1938 6401 1253 1797 1417 1635 6102Resources 1051 1520 1564 2015 2443 1826 1959 1793 2382 553 577 532 553 2215 462 605 587 559 2213 548 607 597 583 2335
EBIT 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 1675 844 884 823 720 301 764 907 703 85 302 277 232 896 110 231 227 433 1001 104 248 133 -260 225
Construction 463 257 288 179 220 212 260 139 297 09 124 81 -18 196 27 21 80 263 391 00 42 -34 -207 -199Equipment 1183 513 483 530 340 322 360 994 384 80 160 249 317 806 142 222 158 227 749 83 230 202 97 612Resources 40 60 81 109 152 -240 159 -198 -37 -01 09 -53 -55 -100 -57 -10 -12 -32 -110 27 -22 -30 -137 -162
EBIT margin 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in )BAUER Group 130 77 78 67 54 21 56 66 50 22 67 64 58 54 35 58 56 93 63 30 61 37 -72 15
Construction 79 53 57 35 38 32 40 21 48 05 60 38 -11 25 19 13 39 121 54 00 26 -21 -147 -32Equipment 197 112 103 104 65 57 68 181 71 64 86 148 176 122 110 128 110 117 117 66 128 143 60 100Resources 38 39 52 54 62 -131 81 -110 -16 -02 15 -100 -99 -45 -123 -16 -20 -57 -50 49 -37 -49 -235 -69
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 49
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
- Foliennummer 1
- Foliennummer 2
- Key FiguresFY 2019
- Table of Content
- Foliennummer 5
- Foliennummer 6
- Foliennummer 7
- Foliennummer 8
- BAUER Group Construction market environment vs order backlog
- Foliennummer 10
- Foliennummer 11
- Table of Content
- Foliennummer 13
- Foliennummer 14
- Foliennummer 15
- Foliennummer 16
- Foliennummer 17
- Foliennummer 18
- Foliennummer 19
- Foliennummer 20
- Foliennummer 21
- Foliennummer 22
- FinancialsIncome statement 12M 2019
- Financials Balance sheet December 31 2019
- FinancialsCash flow statement 12M 2019
- Foliennummer 26
- Foliennummer 27
- Table of Content
- BAUER GroupThe history ndash Two centuries of experience
- Foliennummer 30
- BAUER GroupThe three segments
- Foliennummer 32
- Foliennummer 33
- What is specialist foundationBuilding an excavation pit
- What is specialist foundation used forApplications
- ConstructionMunich Germany ndash Foundation works for a boarding house
- Foliennummer 37
- EquipmentWhole range of products for special foundation engineering
- EquipmentProduct range Deep Drilling
- Foliennummer 40
- ResourcesPool of competences from a single hand
- ResourcesWater ndash Process Water amp Water Distribution Management
- ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
- Market environment ndash Germany German construction market
- Financials Working capital needs ndash Comparison with building construction
- BAUER shareFacts amp Figures
- BAUER shareDividend policy
- Foliennummer 48
- Disclaimer
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 48
Key Figures Time LineFY 2008 ndash FY 2019
In all three segments total Group revenues and EBIT figures of FY 2015 were influenced by exceptional earnings
Total Group revenues 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 15272 12758 13040 13718 14358 15042 15602 16564 15547 4482 4541 4766 3931 17720 3708 4215 4435 4503 16861 4109 4207 4078 3553 15947
Construction 7009 5700 6154 6066 6552 7417 7256 7429 7131 2110 2205 2269 1766 8350 1508 1762 2100 2306 7676 1702 1722 1726 1538 6688Equipment 7801 6085 5817 6365 5891 6286 6392 7531 6344 1867 1853 1966 1859 7545 1808 1936 1802 1685 7231 1859 1950 1781 1547 7137Resources 1351 1743 1777 2115 2628 1889 2528 2216 2624 630 647 651 554 2482 517 676 699 723 2615 692 695 662 700 2749
Sales revenues 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 12908 10965 11317 12196 13444 14022 13757 13790 13969 3789 4512 4354 4022 16679 3184 3987 4051 4669 15891 3419 4035 3622 3633 14709
Construction 5843 4879 5058 5062 5791 6575 6466 6508 6145 1966 2064 2145 1663 7838 1432 1642 2021 2168 7263 1616 1628 1605 1408 6257Equipment 6012 4565 4693 5114 5206 5616 5327 5480 5427 1266 1857 1685 1801 6609 1287 1736 1440 1938 6401 1253 1797 1417 1635 6102Resources 1051 1520 1564 2015 2443 1826 1959 1793 2382 553 577 532 553 2215 462 605 587 559 2213 548 607 597 583 2335
EBIT 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in EUR million)BAUER Group 1675 844 884 823 720 301 764 907 703 85 302 277 232 896 110 231 227 433 1001 104 248 133 -260 225
Construction 463 257 288 179 220 212 260 139 297 09 124 81 -18 196 27 21 80 263 391 00 42 -34 -207 -199Equipment 1183 513 483 530 340 322 360 994 384 80 160 249 317 806 142 222 158 227 749 83 230 202 97 612Resources 40 60 81 109 152 -240 159 -198 -37 -01 09 -53 -55 -100 -57 -10 -12 -32 -110 27 -22 -30 -137 -162
EBIT margin 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 17 Q2 17 Q3 17 Q4 17 2017 Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Q2 19 Q3 19 Q4 19 2019(in )BAUER Group 130 77 78 67 54 21 56 66 50 22 67 64 58 54 35 58 56 93 63 30 61 37 -72 15
Construction 79 53 57 35 38 32 40 21 48 05 60 38 -11 25 19 13 39 121 54 00 26 -21 -147 -32Equipment 197 112 103 104 65 57 68 181 71 64 86 148 176 122 110 128 110 117 117 66 128 143 60 100Resources 38 39 52 54 62 -131 81 -110 -16 -02 15 -100 -99 -45 -123 -16 -20 -57 -50 49 -37 -49 -235 -69
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 49
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
- Foliennummer 1
- Foliennummer 2
- Key FiguresFY 2019
- Table of Content
- Foliennummer 5
- Foliennummer 6
- Foliennummer 7
- Foliennummer 8
- BAUER Group Construction market environment vs order backlog
- Foliennummer 10
- Foliennummer 11
- Table of Content
- Foliennummer 13
- Foliennummer 14
- Foliennummer 15
- Foliennummer 16
- Foliennummer 17
- Foliennummer 18
- Foliennummer 19
- Foliennummer 20
- Foliennummer 21
- Foliennummer 22
- FinancialsIncome statement 12M 2019
- Financials Balance sheet December 31 2019
- FinancialsCash flow statement 12M 2019
- Foliennummer 26
- Foliennummer 27
- Table of Content
- BAUER GroupThe history ndash Two centuries of experience
- Foliennummer 30
- BAUER GroupThe three segments
- Foliennummer 32
- Foliennummer 33
- What is specialist foundationBuilding an excavation pit
- What is specialist foundation used forApplications
- ConstructionMunich Germany ndash Foundation works for a boarding house
- Foliennummer 37
- EquipmentWhole range of products for special foundation engineering
- EquipmentProduct range Deep Drilling
- Foliennummer 40
- ResourcesPool of competences from a single hand
- ResourcesWater ndash Process Water amp Water Distribution Management
- ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
- Market environment ndash Germany German construction market
- Financials Working capital needs ndash Comparison with building construction
- BAUER shareFacts amp Figures
- BAUER shareDividend policy
- Foliennummer 48
- Disclaimer
copy BAUER AG D-86529 Schrobenhausen20-04-09 IR-Presentation_FY_2019 49
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
- Foliennummer 1
- Foliennummer 2
- Key FiguresFY 2019
- Table of Content
- Foliennummer 5
- Foliennummer 6
- Foliennummer 7
- Foliennummer 8
- BAUER Group Construction market environment vs order backlog
- Foliennummer 10
- Foliennummer 11
- Table of Content
- Foliennummer 13
- Foliennummer 14
- Foliennummer 15
- Foliennummer 16
- Foliennummer 17
- Foliennummer 18
- Foliennummer 19
- Foliennummer 20
- Foliennummer 21
- Foliennummer 22
- FinancialsIncome statement 12M 2019
- Financials Balance sheet December 31 2019
- FinancialsCash flow statement 12M 2019
- Foliennummer 26
- Foliennummer 27
- Table of Content
- BAUER GroupThe history ndash Two centuries of experience
- Foliennummer 30
- BAUER GroupThe three segments
- Foliennummer 32
- Foliennummer 33
- What is specialist foundationBuilding an excavation pit
- What is specialist foundation used forApplications
- ConstructionMunich Germany ndash Foundation works for a boarding house
- Foliennummer 37
- EquipmentWhole range of products for special foundation engineering
- EquipmentProduct range Deep Drilling
- Foliennummer 40
- ResourcesPool of competences from a single hand
- ResourcesWater ndash Process Water amp Water Distribution Management
- ResourcesEnvironment ndash Worldrsquos biggest reed bed treatment plant Oman
- Market environment ndash Germany German construction market
- Financials Working capital needs ndash Comparison with building construction
- BAUER shareFacts amp Figures
- BAUER shareDividend policy
- Foliennummer 48
- Disclaimer
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