BAUER Aktiengesellschaft

© BAUER AG, D-86529 Schrobenhausen 12-04-13 IR-Presentation_AnalystConference_FY2011

BAUER Aktiengesellschaft

In-house exhibition in Schrobenhausen, Germany

Analyst Conference

fiscal year 2011 Munich, April 13, 2012

© BAUER AG, D-86529 Schrobenhausen 12-04-13 IR-Presentation_AnalystConference_FY2011 2

Total Group revenues (in EUR million)

1,527 1,276 1,304 1,372

2008 2009 2010 2011

1,600

1,200

800

400

0

2008 2009 2010 2011

Orders in hand (in EUR million)

671.6 508.9 614.9 750.0 800

600

400

200

0

Net profit (in EUR million)

107.5 42.0 39.8 34.1

2008 2009 2010 2011

120

90

60

30

0

Key Figures FY 2011

2008 2009 2010 2011

Employees (in average)

8,674 8,872 9,094 9,646 10,000

7,500

5,000

2,500

0


Mission & Strategy

Services, equipment & products dealing with ground

and groundwater

Our mission

Our strategy

The world is our market.

World market leadership for foundation technology.

Powerful development of drilling applications and related

services for resources, water and energy markets.

Optimizing worldwide organizational networks and self

controlling structures for the Group.

Growth 5 to 12 % per year.

MC 128 – Cutter works in Jeddah, Saudi Arabia


Key Figures FY 2011

2010

in EUR million

2011

in EUR million

∆ FY

in %

Q4 2011

in EUR million

Total Group revenues, of which

- Germany

- International

- Construction

- Equipment

- Resources

- Consolidation / Other

1,304.0

339.1

964.9

615.4

581.7

177.7

- 70.8

1,371.8

370.3

1,001.5

582.1

661.0

211.5

- 82.8

5.2 %

9.2 %

3.8 %

- 5.4 %

13.6 %

19.0 %

n/a

362.9

106.7

256.2

166.4

173.9

48.8

- 26.2

Sales revenues 1,131.7 1,219.6 7.8 % 348.8

Orders received 1,410.0 1,506.9 6.9 % 344.7

Orders in hand 614.9 750.0 22.0 % n/a

EBITDA 165.5 164.5 - 0.6 % 52.0

EBIT 88.4 82.3 - 6.9 % 30.8

EBIT margin in % (of sales revenues) 7.8 6.7 n/a 8.9

Net income 39.8 34.1 - 14.3 % 19.9

Earnings per share in EUR 2.04 1.86 - 8.8 % n/a

Equity ratio in % 33.2 31.6 n/a n/a

Number of employees (average over the year) 9,094 9,646 6.1 % n/a


Contents

Regional breakdown of Revenues 3

Financials 2011 4

Overview BAUER Group 1

5 BAUER share

6 Guidance 2012

BAUER market environment 2

p. 6

p. 13

p. 15

p. 17

p. 25

p. 27

7 Appendix: Current projects & investments p. 28


1 BAUER Group The three segments

Target: ~ 40 % of

total Group revenues

Market leader in

specialist foundation

equipment

New products for

mining, deep drilling

and offshore drilling

80 % of revenues

from sales abroad

Multi-branding

strategy

Target: ~ 40 % of total Group revenues

Global provider for specialist foundation engineering services

Specialist construction services

Focus on complex, international projects

Target: ~ 20 % of

total Group revenues

Activities in

environmental

technology, mining,

deep drilling, well

construction,

materials


What is specialist foundation? Building an excavation pit

1

Ground Water

Injection Anchor

Sealing Slab

Supporting Wall

Underpinning

Injection

Pile Foundation


What is specialist foundation used for? Applications for projects

1

Foundations Cut-off walls Excavation pits

Buildings Infrastructure Water – Energy Industry

Ground improvement


Resources Segment The three divisions

1

Environment about 45 % of revenues*

Exploration & Mining

Services about 23 % of revenues*

Materials about 32 % of revenues*

Full-line provider for

materials in the field of

well construction

geothermal energy

distribution of gas/water/

geothermal energy

Production drilling

(for example: water wells)

Exploration drilling

Preparative work for the mining

of resources

Complete solutions in the field

of geothermal energy

Special solutions for mining

resources

Disposal of polluted areas

Cleaning of process water

and effluents

Processing of drinking water

Cleaning of extracted air

High purity systems

Brewing technology

High purity water systems * based on figures FY 2011


in EUR million (segment after decucting Other/Consolidation)

10

1

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

Resources

209

Equipment

601

Construction

Overseas

405

Total 1.372

Construction

Domestic

157

Total Group Revenues Longstanding healthy business development

German reunification

Far East crisis

Financial crisis


Worldwide network More than 110 subsidiaries in about 70 countries

1

BAUER Manufacturing Inc.

Conroe, Texas, USA

GWE Group, Peine, Germany

BAUER Maschinen KSM,

Kurgan, Russia

BAUER Equipment Malaysia

Shah Alam, Malaysia

Shanghai BAUER Technologies,

Shanghai, China

BAUER Group, plant Edelshausen near

Schrobenhausen, Germany

Permanent Offices:

Construction

Equipment sales

Resources

Equipment production

locations


1 BAUER Group Strengths & Chances

Strategic business model with three forward-looking segments

providing high level of synergies.

Global network organisation with flexible, decentralized

management.

World market leader in foundation equipment with innovative

strength in enhancing existing products and designing new

ones.

Strengths

Chances

Construction segment with considerable number of major

infrastructure projects currently 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. BSD 3000 – Subsea drilling at Orkney Islands, Scotland

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

+

World construction markets Bauer market potential

2

13

-

Western Europe:

declining markets, Germany

weak for big projects +

+

++

Far East:

positive development

in all areas, especially

Hongkong, Singapore

+ Other Americas:

several chances in

Central America

o

Africa:

slight construction activities,

regional growth (Angola, Algeria);

demand for water and resources

Summary: Recovering market conditions worldwide at the end of the crisis; 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); exploration and downstreamed stages:

Liquefaction plants (gas), refineries, power plants

Middle East:

stable, especially

Abu Dhabi, Qatar,

downturn in Dubai

Eastern Europe:

slowly positive development,

especially Russia

Central Asia:

India: dynamic

development

USA / Canada:

stimulus packages,

public demand,

power plants, dams, etc.

13

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

-

+

+


Market environment Orders & Currency risks

2

Order backlog (Orders in hand) Currency Risks

Expected order intake

2012

Construction Germany

Construction International +

Equipment BAUER Maschinen GmbH –

Equipment Subsidiaries

Resources ++

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

FY 2011 Reach in months

in relation to total

Group revenues

full year 2011

TOTAL

Construction

Equipment

Resources

EUR 750 million

EUR 457 million

EUR 125 million

EUR 168 million

6.6 months

9.4 months

2.3 months*

9.6 months

* incl. running small-type orders

Construction

Project size EUR 100,000 up to EUR 70 million

~ 50 / 50 infrastructure / large industrial buildings

~ 600 projects per year

Local financing (natural hedge) for project duration

Translation risk (consolidation) hedged

US$ business hedged, e.g. swaps

Equipment

~ 80 % of invoicing in EUR

US$ business hedged with permanent translation of

individual machines

Production expansion to US, China and others to

counteract currency risk Euro / US$ / RMB and

others


3 Regional breakdown Total Group revenues 2011

in EUR million

Total 1,372

in EUR million

Africa 70 (5 %)

Americas 155 (12 %)

Asia-Pacific,

Far East & Australia

252 (19 %)

Middle East

& Central Asia 204 (16 %)

Germany 339 (26 %)

EU excl. Germany

153 (12 %)

Europe (other)

131 (10 %)

Total 1,304

Full year 2010

Africa 67 (5 %)

Americas 191 (14 %)

Asia-Pacific,


292 (21 %)

Middle East

& Central Asia 171 (13 %)

Germany 370 (27 %)

EU excl. Germany

154 (11 %)

Europe (other)

127 (9%)


3 Regional breakdown Construction, Equipment, Resources 2011

Figures after deducting Other/Consolidation

Construction segment Equipment segment Resources segment

in EUR million

Total 562 Total 601 Total 209

Africa 36 (6 %)

Americas 77 (14 %)

Asia-Pacific,


138 (25 %)

Middle East &

Central Asia 68 (12 %)

Germany 157 (28 %)

EU excl. Germany

53 (9 %)

Europe (other)

33 (6 %)

Africa 14 (2 %)

Americas 112 (19 %)

Asia-Pacific,


153 (25 %)

Middle East &

Central Asia 38 (6 %)

Germany 111 (19 %)

EU excl. Germany

82 (14 %)

Europe (other)

91 (15 %)

Africa 17 (8 %)

Americas 2 (1 %)

Asia-Pacific,


1 (1 %)

Middle East & Central

Asia 65 (31 %)

Germany 102 (49 %)

EU excl. Germany

19 (9 %)

Europe (other)

3 (1 %)


Revenues (in EUR million)

Earnings (in EUR million)

Financials Revenues, earnings & orders

4

1,276

1,096

2010 2011

1,600

1,200

800

400

0

1,304 1,132

Total Group revenues Sales revenues

84.4

42.0

2010 2011

180

135

90

45

0

88.4

39.8

EBIT Net profit

Orders in hand (in EUR million)

508.9

2010 2011

800

600

400

200

0

614.9

Order intake (in EUR million)

2010 2011

297

283

293

240

303

446

293

1,113

2009

1,527

1,291

2009

107.5

167.5

2009

671.6

2009

465

445

342

329

1,581 - 29.6 %

2008

2008

2008

2008

368

1,410 +26.7 %

1,372

1,220

750.0

82.3

34.1

364

332

438

373

1,507 +6.9 %

Q1

Q2

Q3

Q4


Financials Working capital needs & net debt

4

Net debt (in EUR million)

2008 2009 2010

Net

fin

an

cia

l

de

bt

Pe

ns

ion

s

446 520

46

49

Bauer’s business model with its three segments

requires considerably more working capital than

other companies in construction markets.

Changes during the year:

- Levels in balance sheet and income statement during

the year are typically higher than year-end positions.

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.

Net working capital (in EUR million)

2008 2009 2010

363 445 494

640

480

320

160

0

626

645

52

2011

2011

305

44


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

Construction segment:

- Construction contracts with short duration need approx.

2 - 3 months pre-financing

(no advance payments, no front-loading of prices

possible, comparably long time needed for final account

settlement).

Comparison with main contractor: they can finance

their company by a positive cash flow from jobs.

Special items related to net debt end of 2011:

- New deep drilling rig TBA 440 is finished and ready for

sales: approx. EUR 15 million.

- Special effects increased working capital in FY 2011 by

approx. EUR 60 million:

1) Delays on three big construction projects lead to

higher pre-financing and accounts receivables.

2) Pre-financing for the extension of the water

treatment plant in Oman.

3) Delays in equipment deliveries to customers related

to stoppage of railway projects in China year-end.

4) Overestimation of equipment sales potentials lead to

an higher inventory.


Financials Revenues Q4 / FY 2011

4

in EUR '000 Q4 2010 Q4 2011 ∆ Q4 in % FY 2010 FY 2011 ∆ FY in %

Total Group revenues 341,402 362,890 6.3% 1,304,017 1,371,831 5.2%

Sales revenues, Construction 94,785 122,528 29.3% 505,758 482,658 -4.6%

Sales revenues, Equipment 148,320 173,427 16.9% 469,252 534,999 14.0%

Sales revenues, Resources 44,117 48,658 10.3% 156,398 201,549 28.9%

Sales revenues, Other 9 105 n/a 265 381 n/a

Sales revenues (external) 287,231 344,718 20.0% 1,131,673 1,219,587 7.8%

Consolidated revenues (P&L) 326,654 348,828 6.8% 1,255,600 1,327,085 5.7%

Orders in hand 614,936 749,968 22.0%


Financials Earnings Q4 / FY 2011

4

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

in EUR '000 Q4 2010 Q4 2011 ∆ Q4 in % FY 2010 FY 2011 ∆ FY in %

EBITDA 55,339 52,014 -6.0% 165,517 164,496 -0.6%

Margin (a) 19.3% 15.1% n/a 14.6% 13.5% n/a

EBIT 32,527 30,791 -5.3% 88,355 82,300 -6.9%

EBIT margin (a) 11.3% 8.9% n/a 7.8% 6.7% n/a

EBIT Construction segment 6,309 8,247 30.7% 28,798 17,631 -38.8%

EBIT margin, Construction segment (a) 6.7% 6.7% n/a 5.7% 3.7% n/a

EBIT Equipment segment 20,356 18,424 -9.5% 48,283 53,216 10.2%

EBIT margin, Equipment segment (a) 13.7% 10.6% n/a 10.3% 9.9% n/a

EBIT Resources segment 3,144 2,674 -14.9% 8,075 10,897 34.9%

EBIT margin, Resources segment (a) 7.1% 5.5% n/a 5.2% 5.4% n/a

Net income (b) 18,767 19,943 6.3% 39,789 34,115 -14.3%

Margin (a) 6.5% 5.8% n/a 3.5% 2.8% n/a

Earnings per share (in EUR) 1.03 1.16 13.0% 2.04 1.86 -8.8%


Financials Income statement FY 2011

4

in EUR '000 Dec 31, 2010 Dec 31, 2011 ∆ FY in %

Consolidated revenues (P&L) 1,255,600 1,327,085 5.7%

Sales revenues (P&L) 1,131,673 1,219,587 7.8%

Material costs -626,952 -672,807 7.3%

Personnel costs -282,506 -298,761 5.8%

Depreciation and amortization of fixed assets -64,914 -66,287 2.1%

Write-downs of inventories due to use -12,248 -15,909 29.9%

Other operation expenses -180,625 -191,021 5.8%

EBIT 88,355 82,300 -6.9%

Financial income 4,071 6,624 n/a

Financial expenses -36,400 -40,702 11.8%

Result from associated entities 1,436 -689 n/a

Profit before tax (EBT) 57,462 47,533 -17.3%

Income tax -17,673 -13,418 -24.1%

Net income 39,789 34,115 -14.3%

whereof attributable to shareholders of Bauer AG 35,029 31,933 -8.8%

whereof minority interest 4,760 2,182 -54.2%


Financials Balance sheet December 31, 2011

4

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

in EUR '000 Dec 31, 2010 Dec 31, 2011 ∆ FY in %

Assets 1,337,749 1,487,450 11.2%

Intangible assets 23,261 30,303 30.3%

Property, plant and equipment 441,737 458,572 3.8%

Long term financial assets 14,528 18,635 28.3%

Other long term assets & deferred taxes 28,204 26,285 -6.8%

Receivables from concession arrangements 45,874 43,975 -4.1%

Inventories 420,417 470,646 11.9%

Receivables and other assets 329,109 409,301 24.4%

Effective income tax refund claims 7,006 4,786 -31.7%

Cash and cash equivalents 27,613 24,947 -9.7%

Equity and liabilities 1,337,749 1,487,450 11.2%

Equity 443,866 470,434 6.0%

Pension provisions 47,380 49,858 5.2%

Non-current liabilities 400,494 413,027 3.1%

Current liabilities 411,827 529,692 28.6%

Other provisions / tax 34,182 24,439 -28.5%


Financials Cash flow statement FY 2011

4

in EUR '000 Dec 2010 Dec 2011 ∆ FY in %

Cash flow from operating activities 45,342 8,459 -81.3%

Cash flow from investing activities -75,518 -84,656 n/a

Cash flow from financing activities 17,850 73,466 n/a

Free Cash Flow -30,176 -76,197 n/a

Changes in liquid funds affecting payments -12,326 -2,731 n/a

Influence of exchange rate movements on cash 2,886 65 n/a

Total change in liquid funds -9,440 -2,666 n/a

Cash at beginning of reporting period 37,053 27,613 -25.5%

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


BAUER share Facts & Figures

5

Bauer family

48.19 %

Free float

51.81 %

Number of shares outstanding: 17,131,000

Listed on Frankfurt stock exchange,

Prime Standard since July 4, 2006

Shares issued 17,131,000

Issue price EUR 16.75

Listed in SDAX (MDAX from 22.09.2008 to 19.09.2010)

Earnings per share 2011

EUR 1,86 (2010 EUR 2.04)

Dividend payout 2011 (proposal)

EUR 0.50 per share (2010 EUR 0.60 per share)

Year high / Year low 2011

EUR 38.49 / EUR 16.04 (07.02.2011 / 01.11.2011)

YTD high / YTD low 2012

EUR 26.50 / EUR 19.90 (21.02.2012 / 09.01.2012)

Market capitalisation

around EUR 360 million

Shareholder structure

Share performance (2011 – YTD 2012)

SDAX

DAX

Trading volume

BAUER AG


BAUER share Dividend policy

5

2009

Dividend payment (in EUR per share)

2010 2008 2007 2006

0.30

0.00

0.60

0.90

1.20

0.50

1.00 1.00

0.60 0.60

* Proposed; subject to the consent of the Annual General Meeting to be held on June 28, 2012

Dividend policy founded on a reasonable

balance between shareholders and

company

fair participation of shareholders

continuity over the years

safeguarding of the equity base

All shareholders shall participate in the

success of the business.

In turbulent times such as the financial crisis

our goal of strategic and safe growth of the

company led to slightly higher profit retention

for the last years.

To secure an adequate equity ratio is an

important aim of the company’s management.

With this we intend to safeguard the long-term

success of the Group.

2011*

0.50


Guidance 2012 Top-line growth with stable profitability

5

2011e* 2011 final 2012e

Total Group Revenues ~ 1,350 EUR billion 1,372 EUR million ~ 1,450 EUR billion

EBIT ~ 80 EUR million 82.3 EUR million ~ 85 EUR million

Net profit > 30 EUR million 34.1 EUR million ~ 35 EUR million

Presidential Palace – Abu Dhabi, U.A.E In-house exhibition, Schrobenhausen Water treatment plant – Nimr, Oman

* Guidance published October 31, 2011


Current BAUER projects & investments

BAUER Equipment Malaysia –

new workshop & service center


Investments – Singapur New service center of BAUER Technologies Far East


Construction project – Abu Dhabi, U.A.E Foundation works for Presidential Palace


Construction project – New Brunswick, Canada Bridge foundation for Route 1


Construction project – Okeechobee, USA (Florida) Remediation of Herbert Hoover Dike


Construction project – Sochi, Russia Infrastructure works for Olympic Games


Construction project – Republic of Moldova Expansion of Giurgiulesti Port


Construction project – Munich, Germany Tunnel for Mittlerer Ring


Construction project – Bielefeld, Germany Foundation works for the university


Schachtbau Nordhausen Bridge construction A10 near Brieselang, Germany


SPESA Spezialbau und Sanierung GmbH Reconstruction of the brick wall of Sengbachtal dam


In-house exhibition 2011 – Schrobenhausen About 1.700 customers from all over the world


TBA 300 TBA 300 / 440 M1


BSD 3000 – Orkney Islands, Scotland Monopile foundation for a tidal energy turbine at EMEC






BAUER Resources – Environment BAUER Nimr Oman – Process water treatment – Phase I

Pipeline Corridor

Camp

1,8 km

Evaporation pond /

Production of salt

Buffer zone

Volume of water - 45.000 m³/d

3,3 km

Reed bed


One third of total area (6 km2) visible

BAUER Resources – Environment BAUER Nimr Oman – Process water treatment







Global Water Award

2011

Industrial Water Project

of the Year


BAUER Resources – Environment BAUER Nimr Oman – Process water treatment – Phase II

• Volume of water after

extension: ~ 90.000 m³/d

• Building phase until

beginning of 2013




BAUER Resources – Exploration & Mining Services Disi Amman, Jordan


BAUER Resources – Environment Guadalajara, Spain – BASF


BAUER Resources – Exploration and Mining Services Oil shale exploration in Jordan


Investor Relations

BAUER Aktiengesellschaft Tel.: +49 8252 97-1218

BAUER-Straße 1 Fax: +49 8252 97-2900

86529 Schrobenhausen

[email protected]

Germany www.bauer.de

BAUER Aktiengesellschaft

Financial calendar 2012

Publication Annual Report 2011 April 13, 2012

Annual Press Conference April 13, 2012

Analyst Conference April 13, 2012

Annual General Meeting June 28, 2012

Interim Report to March 31, 2012 May 15, 2012

Half-Year Interim Report to June 30, 2012 August 14, 2012

Interim Report to September 30, 2012 November 14, 2012

ISIN DE0005168108

Reuters B5AG.DE

Bloomberg B5A GR

Listing SDAX, CDAX, GEX,

Classic All Share

Prime All Share

DAXplus Family


Disclaimer

This presentation contains forward-looking statements. Forward-looking statements

are statements that are not historical facts, including statements about our beliefs,

intentions, expectations, predictions and the assumptions underlying them.

These statements are based on factors as they are currently available to the

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

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

future developments.

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

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

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

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

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

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

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

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BAUER Aktiengesellschaft