BAUER Aktiengesellschaft

Transcription

1 BAUER Aktiengesellschaft Group Presentation First Quarter 2011 Foundation works in Jakarta, Indonesia IR-Presentation_AnalystConference_Q12011 BAUER AG, D Schrobenhausen

2 Key Figures FY ,600 Total Group revenues (in EUR million) 1,208 1,527 1,276 1, Net profit (in EUR million) , Orders in hand (in EUR million) Employees (in average) ,000 6,983 8,674 8,872 9, , , ,

3 Mission & Strategy Our mission Services, equipment & products dealing with ground and groundwater 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. Tottenham Court Road London, Great Britain 3

4 Key Figures Q Q in EUR million Q in EUR million Q1 in % Total Group revenues, of which - Germany - International - Construction - Equipment - Resources % 6.2 % 21.8 % % 41.1 % 9.9 % - Consolidation / Other n/a Sales revenues % Equity ratio in % n/a Orders received % Orders in hand % EBITDA % EBIT % EBIT margin in % (of sales revenues) n/a Net income n/a Earnings per share in EUR n/a Number of employees (average over the year) 8,860 9, % 4

5 Contents 1 Overview BAUER Group p. 6 2 BAUER market environment p Regional breakdown of Revenues p Financials p Guidance Appendix p. 25 p. 26 5

6 1 BAUER Group The three segments Construction Target ~ 40 % of total Group revenues Global provider for specialist foundation engineering and services in the field of infrastructure and engineering works Focus on complex, international projects Resources Target ~ 20 % of total Group revenues Equipment Target ~ 40 % of total Group revenues Market leader in specialist foundation equipment New products for mining, deep drilling and offshore drilling 85 % of revenues from sales abroad Multi-branding strategy Activities in the field of environmental services, mining, geothermal energy, well drilling and well engineering materials 6

7 1 What is specialist foundation? Building an excavation pit Supporting Wall Ground Water Underpinning Injection Injection Anchor Sealing Slab Pile Foundation 7

8 1 What is specialist foundation used for? Applications for projects Buildings Infrastructure Water Energy Industry Foundations Excavation pits Cut-off walls Ground improvement 8

9 1 Resources Segment The three divisions Materials about 36 % of revenues* Exploration & Mining Services about 23 % of revenues* Environment about 41 % of revenues* Full-line provider for materials in the field of well construction geothermal energy distribution of gas/water/ geothermal energy * based on figures FY 2010 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 9

10 1 Total Group Revenues Longstanding healthy business development in EUR million (segment after decucting Other/Consolidation) Financial crisis Total Resources 172 Far East crisis Equipment 533 German reunification Construction Overseas 424 Construction Domestic 175 Note: based on HGB figures, from 2003 based on IFRS figures IR-Presentation_AnalystConference_Q12011 BAUER AG, D Schrobenhausen 10

11 1 Worldwide network More than 110 subsidiaries in about 70 countries Permanent Offices: Construction Equipment sales Resources Equipment production locations BAUER Maschinen KSM, Kurgan, Russia BAUER Tianjin Technologies, Tianjin, China BAUER Manufacturing Inc. BAUER Group, plant Aresing near GWE Group, Peine, Germany Shanghai BAUER Technologies, Conroe, Texas, USA Schrobenhausen, Germany Shanghai, China 11

12 1 BAUER Group Strengths & Chances Strengths 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. 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 and powerful foundation crane series. 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 300 Deep drilling rig 12

13 2 World construction markets Bauer market potential + Western Europe: declining markets, Germany somewhat better USA / Canada: stimulus packages, public demand, power plants, dams, etc. - Eastern Europe: slowly positive development, especially Russia Far East: positive development in all areas, especially Hongkong, Singapore Other Americas: several chances in Central America + o Central Asia: India: dynamic development ++ Africa: slight construction activities, regional growth (Angola, Algeria); demand for water and resources Middle East: stable, especially Abu Dhabi, Qatar & Egypt, downturn in Dubai Summary: IR-Presentation_AnalystConference_Q weak - slightly weak stable + growing ++ strong growth Recovering market conditions worldwide at the end of the crisis Specialist foundation construction grows relative to construction market Energy 13 sector becomes main booster, not only with exploration but also with downstreamed stages: Liquefaction plants (gas), refineries, power plants BAUER AG, D Schrobenhausen 13

14 2 Market environment Orders & Currency risks Order backlog (Orders in hand) Currency Risks Q TOTAL EUR 671 million Construction EUR 343 million Equipment EUR 161 million Resources EUR 168 million * incl. running small-type orders Reach in months in relation to total Group revenues full year months 6.7 months 3.3 months* 11.3 months Construction Project size EUR 100,000 up to EUR 20 million ~ 50 / 50 infrastructure / large industrial buildings ~ 600 projects per year Local financing (natural hedge) for project duration Translation risk (consolidation) hedged US$ business (~ 9 %) hedged, e.g. swaps Expected order intake 2010 Construction Germany Construction International + Equipment BAUER Maschinen GmbH Equipment Subsidiaries Resources weak - slightly weak adequate + well adequate ++ very well adequate Equipment ~ 80 % of invoicing in EUR US$ business (~ 10 %) hedged with permanent translation of individual machines Production expansion to US, China and others to counteract currency risk Euro / US$ / RMB and others 14

15 3 Regional breakdown Total Group revenues FY 2010 in EUR million Total Germany 339 (26 %) Africa 70 (5 %) Americas 155 (12 %) Asia-Pacific, Far East & Australia 252 (19 %) Full year 2009 in EUR million Germany 361 (28 %) Total Africa 78 (6 %) America 138 (11 %) Europe (other) 98 (8%) EU excl. Germany 222 (17 %) Asia-Pacific, Far East & Australia 166 (13 %) Middle East & Central Asia 213 (17 %) Europe (other) 131 (10 %) EU excl. Germany 153 (12 %) Middle East & Central Asia 204 (16 %) 15

16 3 Regional breakdown Construction, Equipment, Resources FY 2010 Construction segment Equipment segment Resources segment in EUR million Total 599 Total 533 Total 172 Germany 176 (29 %) Africa 51 (9 %) Americas 66 (11 %) Asia-Pacific, Far East & Australia 113 (19 %) Germany 82 (15 %) Africa 7 (1 %) Americas 84 (16 %) Asia-Pacific, Far East & Australia 137 (26 %) Germany 81 (47 %) Africa 12 (7 %) Americas 5 (3 %) Asia-Pacific, Far East & Australia 2 (1 %) Europe (other) 37 (6%) EU excl. Germany 44 (7 %) Middle East & Central Asia 112 (19 %) Figures after deducting Other/Consolidation Europe (other) 89 (17%) EU excl. Germany 96 (18 %) Middle East & Central Asia 38 (7 %) Middle East & Central Asia 54 (31 %) Europe (other) 5 (3%) EU excl. Germany 13 (8 %) 16

17 4 Financials Revenues, earnings & orders Revenues (in EUR million) Orders in hand (in EUR million) 1,600 1,527 Total Group revenues Sales revenues 800 1,200 1,291 1,276 1,096 1,304 1, Q Q Q Q Earnings (in EUR million) Order intake (in EUR million) EBIT Net profit Q Q Q Q Q Q ,581-29,4 % ,7 % 1,410 1, ,1 %

18 4 Financials Working capital needs & net debt 600 Net working capital (in EUR million) 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. 0 Net financial debt Pensions Net debt (in EUR million) Q Q Q Q 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. 18

19 4 EUR Contract value EUR Financials Working capital needs & cash flow Building construction Positive cash contribution Positive cash contribution months Specialist foundation engineering Pre-financing need Negative cash contribution Construction segment: - Construction contracts with short duration need approx. 2-3 months pre-financing (no advance payments, no front-loading of prices possible, comparably long time needed for final account settlement). Comparison with main contractor: they can finance their company by a positive cash flow from jobs. Resources segment: - A mixture of the Construction and Equipment segments. Special items related to net debt end of 2010: Contract value Negative cash contribution months - Deep drilling rigs not sold before year end: approx. EUR 20 million. - Regulations under IFRS for inventory financing: approx. EUR 25 million (not acknowledged in balance sheet before). - BOT project in Oman (water treatment plant): approx. EUR 46 million. 19

20 4 Financials Revenues Q in EUR '000 Q Q Q1 in % FY 2010 Total Group revenues 261, , % 1,304,017 Sales revenues, Construction 114, , % 505,758 Sales revenues, Equipment 69, , % 469,252 Sales revenues, Resources 32,027 34, % 156,398 Sales revenues, Other % 265 Sales revenues (external) 215, , % 1,131,673 Consolidated revenues (P&L) 257, , % 1,255,600 Orders in hand 541, , % 614,936 20

21 4 Financials Earnings Q in EUR '000 Q Q Q1 in % FY 2010 EBITDA 23,439 25, % 165,517 Margin (a) 10.9% 10.0% n/a 14.6% EBIT 5,641 6, % 88,355 EBIT margin (a) 2.6% 2.6% n/a 7.8% EBIT Construction segment 2,910-1,252 n/a 28,798 EBIT margin, Construction segment (a) 2.6% -1.1% n/a 5.7% EBIT Equipment segment 2,580 9, % 48,283 EBIT margin, Equipment segment (a) 3.7% 8.5% n/a 10.3% EBIT Resources segment n/a 8,075 EBIT margin, Resources segment (a) 0.4% -1.7% n/a 5.2% Net income (b) -4,445-2,636 n/a 39,789 Margin (a) -2.1% -1.0% n/a 3.5% Earnings per share (in EUR) n/a 2.04 n/a not applicable (a) of sales revenues (b) pre-minorities 21

22 4 Financials Income statement March 31, 2011 in EUR '000 Q Q Q1 in % FY 2010 Consolidated revenues (P&L) 257, , % 1,255,600 Sales revenues (P&L) 215, , % 1,131,673 Material costs -123, , % -626,952 Personnel costs -66,273-71, % -282,506 Depreciation and amortization of fixed assets -15,069-15, % -64,914 Write-downs of inventories due to use -2,729-3, % -12,248 Other operation expenses -43,446-54, % -180,625 EBIT 5,641 6, % 88,355 Financial income 273 2, % 4,071 Financial expenses -8,533-9, % -36,400 Result from associated entities n/a 1,436 Profit before tax (EBT) -2, n/a 57,462 Income tax -1,936-1,710 n/a -17,673 Net income -4,445-2,636 n/a 39,789 whereof attributable to shareholders of Bauer AG -5,298-3,269 n/a 35,029 whereof minority interest % 4,760 22

23 4 Financials Balance sheet March 31, 2011 in EUR '000 March 31, 2010 March 31, 2011 Q1 in % Dec 31, 2010 Assets 1,288,254 1,404, % 1,337,749 Intangible assets 22,058 23, % 23,261 Property, plant and equipment 426, , % 441,737 Long term financial assets 14,402 14, % 14,528 Other long term assets & deferred taxes 30,176 27, % 28,204 Receivables from concession arrangements ,944 n/a 45,874 Inventories 408, , % 420,417 Receivables and other assets 331, , % 329,109 Effective income tax refund claims 9,736 8, % 7,006 Cash and cash equivalents 44,742 41, % 27,613 Equity and liabilities 1,288,254 1,404, % 1,337,749 Equity 406, , % 443,866 Pension provisions 45,409 48, % 47,380 Non-current liabilities 370, , % 400,494 Current liabilities 437, , % 411,827 Other provisions (a) / tax 27,948 34, % 34,182 (a) Other provisions also include short term portion of pension provisions 23

24 4 Financials Cash flow statement Q in EUR '000 Q Q Q1 in % FY 2010 Operating cash flow ,427 n/a 45,342 Investing cash flow -10,595-10,505 n/a -75,518 Financing cash flow 53,075 52, % 17,850 Free Cash Flow -46,209-38,932 n/a -30,176 Net cash increase 7,689 13, % -9,440 Cash at start of reporting period 37,053 27, % 37,053 Cash at end of reporting period 44,742 41, % 27,613 24

25 5 Guidance 2011 Top-line growth with higher profitability expected 2010e 2010 final 2011e Total Group Revenues ~ 2009 level (1.276 EUR million) EUR million ~ EUR million EBIT not guided 88.4 EUR million > 95 EUR million Net profit EUR million 39.8 EUR million > 45 EUR million International airport Doha, Qatar New power plant Rotterdam, Netherlands Water treatment plant Nimr, Oman 25

26 Appendix A History of Bauer p. 27 B Construction projects p. 29 C Equipment programme p. 34 D Resources projects p. 39 E Market environment Germany p. 42 F BAUER share p. 43 G Key Figures Time Line p

27 A History of Bauer Two centuries of experience After WW II (1950's): Start of construction business End of 1970 s: Start of internationalisation Early 1980 s: Selling of equipment to third parties 4. Jul 2006: IPO Sept 2006: Admittance in SDAX FY 2010: Total Group revenues EUR billion, 9,094 employees Company founded as copper forge Early 1970 s: Start of equipment manufacturing Early 1990 s: Build up of specialist construction/ environmental business 27

28 A Bauer s home base Headquarters and plant Schrobenhausen, Germany 28

29 B Construction Abu Dhabi Pile foundation for Carina Views residences 29

30 B Construction Sochi, Russia Infrastructure works for the Olympic Games 30

31 B Construction Florida/Okeechobee, USA Remediation of Herbert Hoover Dike 31

32 B Construction Munich, Germany Tunnel for Mittlerer Ring 32

33 B Construction Ochsenfurt, Germany Bridge foundation across Main river 33

34 C Equipment BAUER Maschinen Group at Bauma

35 C Equipment Product range: BG-systems (BG 12 BG 50) Small-sized (BG 12 BG 18) Medium-sized (BG 20 BG 28) Large-sized (BG 36 BG 50) BG 12 H BG 15 H BG 18 H BG 20 H BG 24 H BG 25 BG 28 H BG 36 BG knm* 151 knm* 177 knm* 200 knm* 222 knm* 237 knm* 269 knm* 367 knm* 390 knm* BG knm* * Torque 35

36 C Equipment Product range: Foundation Cranes MC 32 MC 64 MC

37 C Equipment Product range: Deep Drilling RB 50 TBA 200 TBA

38 C Equipment Other products (examples: geothermal drilling, double rotary head drilling, pile driving) KR 707 RG 25 S BG 24 H 38

39 D Resources Materials Division Amman, Jordan Drilling works and installation of production wells 39

40 D Resources Exploration and Mining Services Division Canada Diavik Mine Jordan - Oil drilling rig Canada - Highland Valley Copper Mine 40

41 D Resources Environment Division One third of total area (6 km 2 ) visible Oman Reed Bed Water Treatment Plant 41

42 E Market environment Germany German construction market Employees in Revenues in EUR billion Building construction Foundation engineering Orders received * in EUR billion Absolute Figures 2010 West- Germany December 2010 East- 2010/ 2009/ 2010/ Germany West Germany Change in % / 2009/ 2010/ Housebuilding Industrial building Public sector of which public buildings road building underground structures East Germany *) only companies > 20 employees Source: Federal Statistical Office, Statistical Office Bavaria 42

43 F BAUER share Facts & Figures Listed on Frankfurt stock exchange, Prime Standard since July 4, 2006 Share performance (2010 YTD 2011) Shares issued 17,131,000 Issue price EUR BAUER AG SDAX DAX Listed in SDAX (MDAX from to ) Trading volume Earnings per share 2010 EUR 2.04 (2009 EUR 2.28) Dividend payout 2010 (proposal) EUR 0.60 per share (2009 EUR 0.60 per share) Year high / Year low 2010 EUR / EUR ( / ) YTD high / YTD low 2011 EUR / EUR ( / ) Shareholder structure Bauer family % Free float % Market capitalisation around EUR 610 million Number of shares outstanding: 17,131,000 43

44 F BAUER share Dividend policy Dividend payment (in EUR per share) * * Proposed; subject to the consent of the Annual General Meeting to be held on June 30, 2011 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 past two 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. 44

45 G Key Figures Time Line Q Q Total Group Revenues (in EUR million) BAUER Group Construction Equipment Resources Sales Revenues (in EUR million) BAUER Group Construction Equipment Resources EBIT (in EUR million) BAUER Group Construction Equipment Resources EBIT margin (in %) Q1 08 Q2 08 Q3 08 Q Q1 09 Q2 09 Q1 08 Q2 08 Q3 08 Q Q1 09 Q1 08 Q2 08 Q3 08 Q Q1 09 Q2 09 Q3 09 Q3 09 Q Q1 10 Q2 10 Q3 10 Q4 10 Q1 08 Q2 08 Q3 08 Q Q1 09 Q2 09 Q3 09 Q Q1 10 Q2 09 Q3 09 Q Q1 10 Q2 10 Q2 10 Q3 10 Q4 10 Q3 10 Q4 10 Q Q1 10 Q2 10 Q3 10 Q4 10 BAUER Group 9.7% 11.4% 13.4% 16.4% 13.0% 8.6% 8.2% 6.1% 7.8% 7.7% 2.6% 6.9% 9.1% 11.3% 7.8% 2.6% Construction 2.5% 6.1% 10.4% 12.2% 7.9% 4.4% 7.2% 6.2% 3.7% 5.3% 2.5% 4.7% 8.3% 6.6% 5.7% -1.1% Equipment 20.9% 18.2% 19.0% 20.8% 19.7% 16.1% 10.9% 6.7% 9.8% 11.2% 3.7% 10.4% 9.8% 13.7% 10.3% 8.5% Resources n/a 2.2% 7.0% 8.0% 3.8% n/a 4.4% 5.3% 7.0% 3.9% 0.3% 3.8% 8.0% 7.3% 5.2% -1.7% Q1 11 Q1 11 Q1 11 Q

46 BAUER Aktiengesellschaft Financial calendar 2011 Publication Annual Report 2010 April 15, 2011 Annual Press Conference April 15, 2011 Analyst Conference April 15, 2011 Annual General Meeting June 30, 2011 Interim Report to March 31, 2011 May 13, 2011 Half-Year Interim Report to June 30, 2011 August 12, 2011 Interim Report to September 30, 2011 November 14, 2011 Investor Relations BAUER Aktiengesellschaft Tel.: BAUER-Straße 1 Fax: Schrobenhausen investor.relations@bauer.de Germany ISIN Reuters Bloomberg Listing DE B5AG.DE B5A GR SDAX, CDAX, GEX, Classic All Share Prime All Share DAXplus Family 46

47 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 uncertainties, 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. 47