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BAUER AG Group Presentation First half-year 2014 Schwarzkopf Tunnel bypass, Germany
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IR presentation Q1/2014 · 14-08-14 IR-Presentation_HY_2014 ... Total Group revenues HY 2014 in EUR million Total 749 in EUR million Germany Africa 58 (4 %) America 186 (12 %) Asia-Pacific,

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Page 1: IR presentation Q1/2014 · 14-08-14 IR-Presentation_HY_2014 ... Total Group revenues HY 2014 in EUR million Total 749 in EUR million Germany Africa 58 (4 %) America 186 (12 %) Asia-Pacific,

© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014

BAUER AG

Group Presentation

First half-year 2014

Schwarzkopf Tunnel bypass, Germany

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 2

Key Figures HY 2014

48

36

24

12

0

2011 2012 2013 HY 2013* HY 2014

2011 2012 2013 HY 2013 HY 2014 2011 2012 2013 HY 2013 HY 2014

2011 2012 2013 HY 2013 HY 2014

1,372 1,446 721.3 749.2 34.1 25.8 -19.4 -7.9

750.0 785.0 765.2 868.6 9,646 10,253 10,264 10,388

Total Group revenues

Orders in hand

Net profit

Employees

in EUR million in EUR million

in EUR million in average

1,600

1,200

800

400

0

880

660

440

220

0

12,000

9,000

6,000

3,000

0

1,504

773.7 10,406

-11.0

-12

-24

*Previous years figures adjusted

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 3

Mission & Strategy

Services, equipment & products dealing with ground

and groundwater

Our mission

Our strategy

The world is our market.

World market leadership for foundation technology.

Powerful development of drilling applications and related

services for resources, water and energy markets.

Optimizing worldwide organizational networks and self

controlling structures for the Group.

Growth 3 to 8 % per year.

MC 96 with cutter – Kuala Lumpur, Malaysia

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 4

Total Group revenues with EUR 749.2 million were 3.9 % above previous year (EUR 721.3 million).

EBIT with EUR 13.6 million was considerably higher than in the previous year with EUR 7.4 million.

Revenues of the Construction segment increased by 1.5 % to EUR 351.4 million. EBIT with EUR 7.4

million raised against the previous year comparative of EUR 2.9 million.

The Equipment segment saw revenues of EUR 321.3 million, which is 3.7 % higher than in the previous

year (EUR 309.8 million). EBIT was EUR 13.2 million (previous year: EUR 5.8 million).

Revenues of the Resources segment increased from EUR 93.6 million by 7.9 % to EUR 101.0 million.

EBIT of the segment amounted to EUR -3.3 million (previous year: EUR -2.5 million).

The net loss for the first half-year with EUR -11.0 million was caused by some special effects, like the

loss made on our dam project in the USA, which continues to burden Group’s earnings and also

caused EUR 5.0 million higher income tax expenses compared to the previous year.

Order backlog with EUR 773.7 million (previous year: EUR 868.6 million) is still on a reasonable level.

The full-year forecast predicting total Group revenues of around EUR 1.55 billion, and EBIT of around

EUR 75 million remain unchanged. Because of the special effects and political disturbances we have to

slightly adjust our forecast for profit after tax to around EUR 15 to 20 million.

Main topics

Key Figures HY 2014

Page 5: IR presentation Q1/2014 · 14-08-14 IR-Presentation_HY_2014 ... Total Group revenues HY 2014 in EUR million Total 749 in EUR million Germany Africa 58 (4 %) America 186 (12 %) Asia-Pacific,

© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 5

Key Figures HY 2014

HY 2013*

in EUR million

HY 2014

in EUR million

∆ HY

in %

Total Group revenues, of which

- Germany

- International

- Construction

- Equipment

- Resources

- Consolidation / Other

721.3

212.7

508.6

346.1

309.8

93.6

-28.2

749.2

234.6

514.6

351.4

321.3

101.0

-24.5

3.9 %

10.3 %

1.2 %

1.5 %

3.7 %

7.9 %

n/a

Sales revenues 607.3 645.5 6.3 %

Orders received 804.9 757.6 -5.9 %

Orders in hand 868.6 773.7 -10.9 %

EBITDA 50.3 57.6 14.6 %

EBIT 7.4 13.6 83.1 %

EBIT margin in % (of sales revenues) 1.2 2.1 n/a

Net income -7.9 -11.0 n/a

Earnings per share in EUR -0.45 -0.66 n/a

Equity ratio in % 26.5 24.2 n/a

Number of employees (average over the year) 10,388 10,406 0.2 %

*Previous years figures adjusted

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 6

Contents

Regional breakdown of revenues 3

Financials 4

Overview BAUER Group 1

BAUER market environment 2

p. 7

p. 14

p. 17

p. 19

5 Guidance 2014

6 Appendix

p. 26

p. 27

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 7

1 BAUER Group The three segments

7 © 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, mining,

deep drilling, well

construction,

materials

Page 8: IR presentation Q1/2014 · 14-08-14 IR-Presentation_HY_2014 ... Total Group revenues HY 2014 in EUR million Total 749 in EUR million Germany Africa 58 (4 %) America 186 (12 %) Asia-Pacific,

© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 8

What is specialist foundation? Building an excavation pit

1

Ground Water

Injection Anchor

Sealing Slab

Supporting Wall

Underpinning

Injection

Pile Foundation

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 9

What is specialist foundation used for? Applications for projects

1

Foundations Cut-off walls Excavation pits

Buildings Infrastructure Water – Energy Industry

Ground improvement

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 10

Resources Segment The three competence areas

1

Environment Exploration & Mining

Services

Materials

Full-line provider for

materials in the field of

well construction

geothermal energy

distribution of gas/water/

geothermal energy

Production drilling

(for example: water wells)

Exploration drilling

Preparative work for the mining

of resources

Complete solutions in the field

of geothermal energy

Special solutions for mining

resources

Disposal of polluted areas

Cleaning of process water

and effluents

Processing of drinking water

Cleaning of extracted air

High purity systems

Brewing technology

High purity water systems

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014

in EUR million (segment after decucting Other/Consolidation)

11

1

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

Resources

196

Equipment

591

Construction

Overseas

532

Total 1,504

Construction

Domestic

185

Total Group Revenues Longstanding healthy business development

German reunification

Far East crisis

Financial crisis

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 12

Worldwide network More than 110 subsidiaries in about 70 countries

1

BAUER Manufacturing Inc.

Conroe, Texas, USA

GWE Group, plant Luckau,

Germany

BAUER Maschinen KSM,

Kurgan, Russia

BAUER Equipment Malaysia

Shah Alam, Malaysia

BAUER Tianjin Technologies,

Tianjin, China

BAUER Group, plant Aresing near

Schrobenhausen, Germany

Permanent Offices:

Construction

Equipment sales

Resources

Equipment production

locations

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 13

1 BAUER Group Strengths & Chances

Strategic business model with three forward-looking segments

providing high level of synergies.

Global network organisation with flexible, decentralized

management.

World market leader in foundation equipment with innovative

strength in enhancing existing products and designing new

ones.

Strengths

Chances

Construction segment with considerable number of major

projects currently under construction and tendered for

worldwide.

New growth potential in Equipment segment with entirely new

techniques such as deep drilling rigs, powerful foundation

crane series and offshore equipment.

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

biological water treatment plant and promising opportunities

due to its focus on growth markets water, energy and

environment. TBA 440 M2 – Deep drilling rig

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 14

BAUER Group Challenges of the world provide chances for the company

1

Urbanization Infrastructure Water

Environment Energy / Oil & Gas Values

The megatrend urbanization leads to

more complex inner-city solutions

High demand for new infrastructure and

for restoration of existing structures

Changing social values influence the

working and corporate environment

The pollution and contamination of soil

require innovative purification solutions

Energy and resource scarcity provide

chances for underwater and deep drilling

The shortage of clean drinking water

is one of the worlds biggest problems

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014

+

World construction markets Bauer market potential

2

15

-

Western Europe:

weak markets,

Germany is quite good +

+

++

Far East:

positive development

in all areas, especially

Hongkong, Malaysia

+ Other Americas:

several chances in

Central America

o

Africa:

slight construction activities,

regional growth (Angola, Algeria);

demand for water and resources

Summary: Growing construction markets worldwide, but generally very unstable; huge pent-up demand.

Specialist foundation construction grows relative to construction market.

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

energies & reduction of energy consumption).

Middle East:

stable, especially

Abu Dhabi, Saudi Arabia;

Qatar many projects

Eastern Europe:

slowly positive development,

Russia is difficult to predict

Central Asia:

good market

potentials

USA / Canada:

public demand,

power plants, dams, etc.

15

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

-

+

+

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014

2

16

Global economic situation IMF projection of the real annual GDP growth in %

United States

Latin America

European Union

Brazil

CIS*

China

Developing Asia

Germany

Middle East &

North Africa

Sub-Saharan Africa

World Advanced

Economies

Emerging Markets &

Develop. Economies

Russia

Australia

Quelle: International Monetary Fund, World Economic Outlook Database, April 2014 * CIS = Commonwealth of Independent States (incl. Georgia)

2014 2015

2014 2015

2014 2015

2014 2015

2014 2015

2014 2015

2014 2015

2014 2015

2014 2015

2014 2015 2014 2015

2.2 2.3

2014 2015

7.5 7.3

3.6 3.9

2014 2015

2014 2015 4.9

5.3

2.8 3.0

2.3 3.1

6.7 6.8

2.5 3.0

3.2 4.4

5.4 5.5

2014 2015

1.6 1.8

1.7 1.6

2.6 2.7

1.3 2.3

1.8 2.7

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 17

Market environment Orders & Currency risks

2

Order backlog (Orders in hand) Currency Risks

Expected order intake

2014

Construction Germany +

Construction International +

Equipment BAUER Maschinen GmbH

Equipment Subsidiaries

Resources

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

HY 2014 Reach in months

in relation to total

Group revenues

full year 2013

TOTAL

Construction

Equipment

Resources

EUR 773.7 million

EUR 470.4 million

EUR 134.2 million

EUR 169.1 million

6.2 months

7.7 months

2.6 months*

10.7 months

* incl. running small-type orders

Construction

Project size EUR 100,000 up to EUR 70 million

~ 50 / 50 infrastructure / large industrial buildings

~ 600 projects per year

Local financing (natural hedge) for project duration

Translation risk (consolidation) hedged

USD business hedged, e.g. swaps

Equipment

~ 70 % of invoicing in EUR

USD business hedged with permanent translation of

individual machines

Production expansion to US, China and others to

counteract currency risk EUR / USD / RMB and

others

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 18

3 Regional breakdown Total Group revenues HY 2014

in EUR million

Total 749

in EUR million

Africa 58 (4 %)

America 186 (12 %)

Asia-Pacific,

Far East & Australia

364 (25 %)

Middle East

& Central Asia 163 (11 %)

Germany 410 (27 %)

EU excl. Germany

168 (11 %)

Europe (other)

155 (10 %)

Total 1,504

Full year 2013 (adjusted)

Africa 35 (5 %)

America 75 (10 %)

Asia-Pacific,

Far East & Australia

179 (24 %)

Middle East

& Central Asia 88 (12 %)

Germany 234 (31 %)

EU excl. Germany

64 (8 %)

Europe (other)

74 (10 %)

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 19

3 Regional breakdown Construction, Equipment, Resources HY 2014

Figures after deducting Other/Consolidation

in EUR million

Total 345 Total 304 Total 100

Construction segment Equipment segment Resources segment

Africa 30 (9 %)

America 30 (9 %)

Asia-Pacific,

Far East & Australia

97 (28 %)

Middle East

& Central Asia 42 (12 %)

Germany 83 (24 %)

EU excl.

Germany

21 (6 %)

Europe (other)

42 (12 %)

Africa 4 (1 %)

America 43 (14 %)

Asia-Pacific,

Far East & Australia

81 (27 %)

Middle East

& Central Asia 25 (8 %)

Germany 87 (29 %)

EU excl.

Germany

35 (11 %)

Europe (other)

29 (10 %)

Africa 1 (1 %)

America 2 (2 %)

Asia-Pacific,

Far East & Australia

1 (1 %)

Middle East

& Central Asia

21 (21 %)

Germany 64 (64 %)

EU excl.

Germany

8 (8 %)

Europe (other)

3 (3 %)

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 20

Revenues

Earnings

Financials Revenues, earnings & orders

4

2013 HY 2013

1,600

1,200

800

400

0

100

75

50

25

0

Orders in hand

880

660

440

220

0

Order intake

2013 2014

2012

2012

2011

2011

1,372

1,220

750.0

82.3

34.1

364

332

438

373

1,507

Q1

Q2

Q3

Q4

1,436 1,344

HY 2014

2013 HY 2013 2012 2011 HY 2014

72.0

25.8

2013 HY 2013 2012 2011 HY 2014

785.0 765.2

349

Total Group revenues Sales revenues

EBIT Net profit

in EUR million

in EUR million in EUR million

in EUR million

721 607

749 645

868.6

30.1

7.4 -19.4

342

389

358

392

1,471 +1.0 %

-5.9 %

458

353

-25

1,504 1,402 773.7

-7.9

13.6

-11.0

-1.7 %

325

1,485

334

424

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 21

Financials Revenues, earnings & orders per segment

4 C

on

str

uc

tio

n

Eq

uip

me

nt

Re

so

urc

es

*Previous years figures adjusted

in EUR '000 Q2 2013* Q2 2014 ∆ Q2 in % HY 2013* HY 2014 ∆ HY in % FY 2013*

Total Group revenues 157,422 155,534 -1.2 % 309,782 321,340 3.7 % 628,661

Sales revenues 125,382 118,724 -5.3 % 229,521 223,567 -2.6 % 561,615

Orders in hand 154,015 134,216 -12.9 % 116,525

EBIT 1,998 7,527 n/a 5,771 13,174 n/a 32,223

EBIT margin (in %) 1.6 6.3 n/a 2.5 5.9 n/a 5.7

Net profit -2,830 772 n/a -5,303 -93 n/a 5,055

in EUR '000 Q2 2013* Q2 2014 ∆ Q2 in % HY 2013* HY 2014 ∆ HY in % FY 2013*

Total Group revenues 192,613 174,944 -9.2 % 346,099 351,448 1.5 % 731,274

Sales revenues 167,734 162,710 -3.0 % 292,085 328,609 12.5 % 657,920

Orders in hand 531,339 470,389 -11.5 % 498,701

EBIT 2,603 6,000 n/a 2,928 7,418 n/a 21,827

EBIT margin (in %) 1.6 3.7 n/a 1.0 2.3 n/a 3.3

Net profit 4.652 1,726 n/a 204 -1,661 n/a 5,472

in EUR '000 Q2 2013* Q2 2014 ∆ Q2 in % HY 2013* HY 2014 ∆ HY in % FY 2013*

Total Group revenues 54,553 52,547 -3.7 % 93,604 100,956 7.9 % 199,211

Sales revenues 51,409 50,674 -1.4 % 85,372 93,166 9.1 % 182,115

Orders in hand 183,222 169,070 -7.7 % 150,020

EBIT -123 -1,163 n/a -2,506 -3,281 n/a -24,582

EBIT margin (in %) -0.2 -2.3 n/a -2.9 -3.5 n/a -13.5

Net profit -955 -3,086 n/a -4,513 -6,653 n/a -31,444

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 22

Financials Working capital needs & net debt

4

Net financial debt & pensions

Net

fin

an

cia

l

de

bt

Pe

ns

ion

s

Net working capital

2011 2012

800

600

400

200

0

625

645

52

2013 HY 2013 HY 2014

580 605

2011 2012 2013 HY 2013 HY 2014

82 84

611 672 777

97

in EUR million

in EUR million

721

Bauer’s business model with its three segments

requires considerably more working capital than

other companies in construction markets.

Changes during the year:

- Levels of working capital in the balance sheet during

the year are typically higher than year-end positions.

Construction segment:

- Construction contracts with short duration need

approx. 2 - 3 months pre-financing

(no advance payments, no front-loading of prices

possible, comparably long time needed for final

account settlement).

- On some jobs collection of money takes long time

due to disputes with the customer. Bad payment is

frequently used by customers to achieve reductions

in final payments. This can cause law cases.

Comparison with main contractor: they can finance

their company by a positive cash flow from jobs.

720

84

776

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 23

Building construction

positive cash contribution

Specialist foundation engineering

pre-financing need

Financials Working capital needs & cash flow

4

EUR

12 24 months

Positive cash

contribution

Negative cash

contribution

Co

ntr

ac

t va

lue

EUR

Negative cash

contribution

12 24 months

Co

ntr

ac

t va

lue

Equipment segment:

- Due to very special parts being installed, parts need

to be pre-ordered well in advance

approx. 3 months pre-financing of equipment

during production.

- Spare parts store is needed for large customer base.

- A relatively large rental fleet is needed for different

contract types (e.g. rental purchase).

- Deep drilling rigs add large numbers in value.

Resources segment:

- A mixture of the Construction and Equipment

segments.

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 24

Financials Income statement HY 2014

4

*Previous years figures adjusted

in EUR '000 HY 2013* HY 2014 ∆ HY in % FY 2013

Consolidated revenues (P&L) 679,144 732,072 7.8% 1,447,525

Sales revenues (P&L) 607,266 645,541 6.3% 1,402,173

Material costs -366,156 -395,371 8.0% -755,906

Personnel costs -164,794 -174,856 6.1% -342,815

Depreciation and amortization of fixed assets -38,053 -37,300 -2.0% -79,696

Write-downs of inventories due to use -4,796 -6,716 40.0% -14,196

Other operation expenses -97,917 -104,226 6.4% -224,827

EBIT 7,428 13,603 83.1% 30,085

Financial income 6,277 2,641 -57.9% 7,729

Financial expenses -21,637 -21,519 -0.5% -45,541

Result from associated entities 787 66 -91.6% 1,770

Profit before tax (EBT) -7,145 -5,209 -27.1% -5,957

Income tax -789 -5,755 n/a -13,474

Net income -7,934 -10,964 38.2% -19,431

of which attributable to shareholders of BAUER AG -7,716 -11,346 47.0% -16,927

of which minority interest -218 382 n/a -2,504

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 25

Financials Balance sheet June 30, 2014

4

(a) Other provisions also include short term portion of pension provisions *Previous years figures adjusted

in EUR '000 June 30, 2013* June 30, 2014 ∆ in % Dec 31, 2013

Assets 1.677.817 1.652.323 -1,5% 1.585.218

Intangible assets 34.021 34.656 1,9% 35.388

Property, plant and equipment 469.933 442.415 -5,9% 459.537

Long term financial assets 24.379 21.502 -11,8% 21.684

Other long term assets & deferred taxes 41.131 36.315 -11,7% 33.863

Receivables from concession arrangements 38.934 36.964 -5,1% 36.762

Inventories 472.730 479.333 1,4% 419.352

Receivables and other assets 537.125 549.674 2,3% 517.978

Effective income tax refund claims 5.549 4.245 -23,5% 3.437

Cash and cash equivalents 54.015 47.219 -12,6% 57.217

Equity and liabilities 1.677.817 1.652.323 -1,5% 1.585.218

Equity 444.454 400.235 -9,9% 419.411

Pension provisions 82.801 95.110 14,9% 81.637

Non-current liabilities 465.358 413.174 -11,2% 300.708

Current liabilities 663.440 720.699 8,6% 757.079

Other provisions (a)

/ tax 21.764 23.105 6,2% 26.383

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Financials Cash flow statement HY 2014

4

in EUR '000 HY 2013 HY 2014 ∆ HY in % FY 2013

Operating cash flow -116.934 -61.597 -47,3% 38.416

Investing cash flow -32.738 -16.339 -50,1% -67.153

Financing cash flow 157.150 67.896 -56,8% 43.576

Free Cash Flow -149.672 -77.936 -47,9% -28.737

Changes in liquid funds affecting payments 7.478 -10.040 n/a 14.839

Influence of exchange rate movements on cash 1.305 42 n/a -2.854

Total change in liquid funds 8.783 -9.998 n/a 11.985

Cash at beginning of reporting period 45.232 57.217 26,5% 45.232

Cash at end of reporting period 54.015 47.219 -12,6% 57.217

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Guidance 2014 Top-line growth with an increase in profitability

5

2013e* 2013 final 2014e

Total Group Revenues ~ 1,500 EUR million 1,504 EUR million ~ 1,550 EUR million

EBIT ~ 25 EUR million 30.1 EUR million ~ 75 EUR million

Net profit ~ -20 EUR million -19.4 EUR million ~ 15-20 EUR million

Lakhta Tower – St. Petersburg, Russia Water treatment plant – Nimr, Oman

* Guidance published October 28, 2013

In-house exhibition 2014 – Schrobenhausen

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Appendix

Equipment programme C

Resources projects D

History of Bauer A

E Market environment Germany

F BAUER share

Construction projects B

p. 28

p. 30

p. 35

p. 40

p. 43

p. 44

G Key Figures Time Line p. 46

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 29

1790 · 1900 · 1902 · 1928 · 1948 · 1956 · 1958 · 1967 · 1969 · 1972 · 1975 · 1976 · 1984 · 1990 · 1992 · 1994 · 1998 · 2001 · 2013

History of Bauer Two centuries of experience

End of 1970’s:

Start of

internationalisation

Early 1990’s:

Build up of

specialist construction/

environmental business

FY 2013:

Total Group

revenues

EUR 1.506

billion,

10,264

employees

4. Jul 2006:

IPO

Sept 2006:

Admittance in

SDAX

A

Early 1970’s:

Start of equipment

manufacturing

Company founded as

copper forge

After WW II (1950's):

Start of construction

business

Early 1980’s:

Selling of equipment to

third parties

1790 1900-1970 1980-1990 2000-2013

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A Bauer’s home base Headquarters and plant Schrobenhausen, Germany

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Construction St. Petersburg, Russia – Foundation works for Lakhta Tower

B

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Construction Hong Kong – Foundation of Hong Kong-Zhuhai-Macau bridge

B

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B Construction Panama City, Panama – Pile foundation for Alta Terra project

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Construction Bochum, Germany – Foundation works for Justice buildings

B

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Equipment Product range: Drilling rigs (BG-systems) – ValueLine

C

ValueLine The BG ValueLine is a fully dedicated Kelly drilling rig.

BG 30 BG 38 BG 20

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Equipment Product range: Drilling rigs (BG-systems) – PremiumLine

C

BG 42 BG 50 BG 20

PremiumLine Multi-purpose drilling rigs for various applications of foundation works.

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C Equipment Product range: Foundation Cranes

MC 128 MC 96 MC 64

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C Equipment Product range: Deep Drilling

RB 50 TBA 100 TBA

440 M1

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C Equipment Product range: Underwater Drilling

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Resources Materials

D

Amman, Jordan – Drilling works and installation of production wells

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Resources Exploration and Mining Services

D

Oil drilling rig of Site Goup Tulves, South Tyrol

Canada – Diavik Mine

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Resources Environment

D

Oman – Reed Bed Water Treatment Plant

One third of total area visible

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West-

Germany

Employees in 1000 573,1 183,3 -38,3 2,1 2,4 -62,0 -0,5 0,9

Revenues in EUR billion 75,1 20,3 -5,2 1,2 13,1 -45,8 -1,9 17,9

Building construction 49,8 11,6 -7,9 2,3 11,3 -53,4 1,8 16,6

Foundation engineering 25,4 8,8 -0,5 -1,0 17,1 -31,0 -6,3 20,0

Orders received *

in EUR billion

Housebuilding 9,1 1,9 -29,0 9,4 16,0 -74,0 8,4 5,8

Industrial building 19,4 5,0 -3,4 5,8 6,2 -58,1 3,1 10,3

Public sector

of which

public buildings 2,8 1,0 -30,9 -3,1 -3,3 -55,0 8,8 -4,0

road building 7,6 2,4 23,0 7,5 7,5 -8,7 1,1 0,6

underground structures 5,8 1,5 -27,2 17,0 -0,5 -51,1 6,1 2,2

*) only companies > 20 employees

Jan-May

Change in %

West Germany East Germany

2012/2013/

1995 2011

East-

Germany

2013/

44,7 11,8

2014/2013May 2014 2012/ Jan-May

2014/2013

5,4-12,5

1995

6,8

2011

7,5 -56,9

4,3 0,2-11,0 8,6

4,3

Absolute Figures

2013

2,7 -38,116,2 4,9

Market environment – Germany German construction market

E

Source: Federal Statistical Office, Statistical Office Bavaria

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 44

BAUER share Facts & Figures

F

Bauer family

48.19 %

Free float

51.81 %

Listed on Frankfurt stock exchange,

Prime Standard, since July 4, 2006

Share capital EUR 73,001,420.45

Shares issued 17,131,000

Issue price EUR 16.75

Listed in SDAX (MDAX from 22.09.2008 to 19.09.2010)

Shareholder structure

Share performance (01/2014 – 08/2014)

SDAX

DAX

Trading volume

BAUER AG

in EUR 2010 2011 2012 2013 2014

Earnings per share 2.04 1.86 1.44 -0.99 ---

Share price year end 35.30 21.10 19.32 18.81 ---

Share price highest 36.81 38.49 26.50 23.05 20.04

Share price lowest 27.38 16.04 16.13 17.33 14.44

Market Cap (in EUR million)

604.7 361.5 331.0 322.2 ~260

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BAUER share Dividend policy

F

2009

Dividend payment (in EUR per share)

2010 2008 2007 2006

0.30

0.00

0.60

0.90

1.20

0.50

1.00 1.00

0.60 0.60

Dividend policy founded on a reasonable

balance between shareholders and

company

fair participation of shareholders

continuity over the years

safeguarding of the equity base

All shareholders shall participate in the

success of the business.

In turbulent times such as the financial crisis

our goal of strategic and safe growth of the

company led to higher profit retention for the

last years.

To secure an adequate equity ratio is an

important aim of the company’s management.

With this we intend to safeguard the long-term

success of the Group.

2011

0.50

2012

0.30

2013

0.00

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 46

G Key Figures Time Line Q2 2011 – Q2 2014

* Figures 2013 adjusted

Total Group Revenues

(in EUR million)

BAUER Group 1,527.2 1,275.8 1,304.0 332.4 369.1 362.9 1,371.8 340.0 361.6 361.7 372.5 1,435.8 330.7 390.7 382.6 400.2 1,504.2 378.1 749.2

Construction 700.9 570.0 615.4 146.1 164.0 172.1 606.6 156.9 163.4 163.7 171.2 655.2 153.5 192.7 183.0 202.1 731.3 176.5 351.4

Equipment 780.1 608.5 581.7 154.6 153.9 168.1 636.5 140.7 150.5 153.0 144.9 589.1 152.4 157.4 163.9 155.1 628.7 165.8 321.3

Resources 135.1 174.3 177.7 56.4 67.2 48.8 211.5 58.1 65.5 67.7 71.5 262.8 39.1 54.6 53.2 52.3 199.2 48.4 101.0

Sales Revenues

(in EUR million)

BAUER Group 1,290.8 1,096.5 1,131.7 294.7 324.8 344.7 1,219.6 286.2 319.2 328.5 410.5 1,344.4 262.6 344.7 361.2 433.7 1,402.2 313.4 645.5

Construction 584.3 487.9 505.8 126.6 136.0 130.8 506.2 138.8 144.4 148.3 147.6 579.1 124.4 167.7 182.4 183.4 657.9 165.9 328.6

Equipment 601.2 456.5 469.3 116.7 121.5 165.0 511.4 93.6 108.4 124.1 194.5 520.6 104.1 125.5 127.5 204.5 561.6 104.8 223.6

Resources 105.1 152.0 156.4 51.4 67.1 48.6 201.5 53.6 66.3 56.0 68.4 244.3 34.0 51.4 51.4 45.3 182.1 42.5 93.2

EBIT

(in EUR million)

BAUER Group 167.5 84.4 88.4 21.6 23.2 30.8 82.3 6.4 13.0 26.3 26.3 72.0 2.3 5.1 5.3 17.4 30.1 4.9 13.6

Construction 46.3 25.7 28.8 4.5 6.6 8.0 17.9 2.3 4.2 9.7 5.8 22.0 0.3 2.6 15.5 3.4 21.8 1.4 7.4

Equipment 118.3 51.3 48.3 13.7 11.3 18.7 53.0 5.0 6.8 8.6 13.6 34.0 3.8 2.0 7.5 18.9 32.2 5.6 13.2

Resources 4.0 6.0 8.1 3.4 5.4 2.7 10.9 -0.6 1.6 7.7 6.5 15.2 -2.4 -0.1 -17.6 -4.5 -24.6 -2.1 -3.3

EBIT margin

(in %)

BAUER Group 13.0% 7.7% 7.8% 7.3% 7.1% 8.9% 6.7% 2.3% 4.1% 8.0% 6.4% 5.4% 0.9% 1.5% 1.5% 4.0% 2.1% 1.6% 2.1%

Construction 7.9% 5.3% 5.7% 3.6% 4.9% 6.1% 3.5% 1.7% 2.9% 6.5% 3.9% 3.8% 0.2% 1.6% 8.5% 1.9% 3.3% 0.8% 2.3%

Equipment 19.7% 11.2% 10.3% 11.7% 9.3% 11.3% 10.4% 5.3% 6.3% 6.9% 7.0% 6.5% 3.7% 1.6% 5.9% 9.2% 5.7% 5.3% 5.9%

Resources 3.8% 3.9% 5.2% 6.6% 8.0% 5.6% 5.4% -1.1% 2.4% 13.8% 9.5% 6.2% -7.1% -0.2% -34.2% -9.9% -13.5% -4.9% -3.5%

Q4 13 2013

Q1 14

Q1 14

Q2 14

Q2 14

Q3 13 Q4 13 2013

Q1 14

Q1 14

Q2 14

Q2 14

Q4 13 2013

Q3 13 Q4 13 2013

Q3 13

Q2 13

Q2 13

Q2 13Q3 12

Q4 12

2012

2012

2012 Q3 13Q2 11 Q1 12

2011

2011

Q4 11

Q2 13Q1 12

Q1 12

Q1 12

2011

2010 Q4 11

Q4 11

2009

20092008

2008

2009

2008

2008

2009

Q3 11

Q3 11

Q3 11

Q3 112010

Q2 11

2010

Q2 112010 Q4 11

Q2 11

2011

Q2 12 Q3 12

Q2 12

Q2 12

Q2 12

Q4 12

Q3 12 Q4 12

Q3 12

Q4 12

Q1 13

Q1 13

Q1 13

Q1 13

2012

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 47

Investor Relations

BAUER Aktiengesellschaft

BAUER-Straße 1

86529 Schrobenhausen

Germany

Tel.: +49 8252 97-1218

Fax: +49 8252 97-2900

[email protected]

www.bauer.de

BAUER Aktiengesellschaft

Financial calendar 2014

Publication Annual Report 2013 April 11, 2014

Annual Press Conference April 11, 2014

Analyst Conference April 11, 2014

Annual General Meeting June 26, 2014

Interim Report to March 31, 2014 May 14, 2014

Half-Year Interim Report to June 30, 2014 August 14, 2014

Interim Report to September 30, 2014 November 14, 2014

Listing SDAX, CDAX, GEX,

Classic All Share

Prime All Share

DAXplus Family

Get the

BAUER App

for Apple and

Android

Visit us on YouTube:

http://www.youtube.com/Bauergruppe

ISIN DE0005168108

Reuters B5AG.DE

Bloomberg B5A GR

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© BAUER AG, D-86529 Schrobenhausen 14-08-14 IR-Presentation_HY_2014 48

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.