BAUER AG. Group Presentation FY/Q BAUER MC 64 duty-cycle crane with cutter BCM 10, Shanghai IR-Presentation_FY_2016

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1 BAUER AG Group Presentation FY/Q BAUER MC 64 duty-cycle crane with cutter BCM 10, Shanghai

2 Key Figures FY 2016 FY 2015* in EUR million FY 2016 in EUR million FY in % Total Group revenues, of which - Germany - International - Construction - Equipment - Resources 1, , , , % +1.6 % -6.6 % -2.8 % % % - Other/Consolidation n/a Sales revenues 1, , % Order intake 1, , % Order backlog , % EBITDA % EBIT % EBIT margin in % (of sales revenues) n/a Earnings after tax % Earnings per share in EUR % Equity ratio in % n/a Number of employees (average over the year) 10,738 10, % * Total Group revenue and EBIT figures of 2015 were influenced by exceptional earnings in the Equipment segment Due to rounding, numbers presented in the document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. 2

3 Highlights FY 2016 BAUER Group Total Group revenues decreased by 4.2 % to EUR 1,586.1 million (2015: EUR 1,656.4 million). The figure for 2015 included revenues from the divestment and revaluation of businesses amounting to EUR 77.8 million. Without this effect, total Group revenues were roughly on par with the previous year. In contrast, sales revenues increased by 1.3 % to EUR 1,396.9 million. EBIT was EUR 68.3 million (2015: EUR 90.7 million). The above-mentioned additional revenues also had an effect on the previous year's EBIT figure. Earnings after tax were EUR 14.4 million (2015: EUR 29.0 million). The main reason for the weaker earnings than projected were our subsidiaries in Malaysia and Hong Kong. In Hong Kong, a very large special contract was awarded to a competitor and in Malaysia, the award of three major projects was delayed further and further. In total, these two effects resulted in a considerably loss, which explain the difference to the origin forecast alone. Order backlog of the Group continued to develop well and grew by 1.3 % to EUR 1,008.1 million (2015: EUR million). All segments contributed to this good backlog, especially in Q4, when we were awarded several new specialist foundation engineering projects around the world. Overall, we can see that our measures of recent years made a good impact, resulting in much better performance in our core operations in 2016 compared to the previous year. Forecast 2017: total Group revenues of around EUR 1.7 billion, EBIT of about EUR 75 million and earnings after tax of about EUR 23 to 28 million. Excavation pit for HSBC head office Dubai 3

4 Highlights FY 2016 Segments Construction Total Group revenues decreased by 2.8 % to EUR million (2015: EUR million). EBIT was up from EUR 13.9 million to EUR 30.4 million. Earnings after tax were EUR 9.5 million (2015: EUR -7.3 million). Order backlog, with EUR million (2015: EUR million), is still on a very good level. In 2015, our US subsidiary had a decisive negative impact on the results. The subsidiaries in Hong Kong and Malaysia had a major negative impact on earnings in 2016, while our participation Wöhr + Bauer GmbH brought additional earnings. Equipment Total Group revenues fell by 13.5 % from EUR million to EUR million. In 2015, revenues from the divestment and revaluation of businesses totaling EUR 77.8 million were included. Therefore, also EBIT fell from EUR 99.4 million to EUR 37.0 million. Sales revenues fell slightly by 1.0 %, from EUR million to EUR million. Earnings after tax fell from EUR 65.4 million to EUR 10.9 million. We see growth in our core business of specialist foundation equipment, resulting in a 12.4 % higher order backlog of EUR million (2015: EUR million). Resources Total Group revenues significantly increased by 19.5 % to EUR million (2015: EUR million). EBIT increased from EUR million to EUR -3.2 million and earnings after tax were up from EUR million to EUR -8.5 million. Order backlog grew by 0.8 % to EUR million (2015: EUR million) and is on a good level. Restructuring processes of the last two years were completed by the end of 2016 and we expect to make this segment profitable again in the next two years. BG 40 rotary drilling rig Essen, Germany 4

5 BAUER Group Final figures vs. forecast and long-term targets Total Group Revenues 2016 forecast* slightly below 1,650 EUR million 1,586 EUR million Revenue growth -4.2 % 3-8 % EBIT ~ 65 EUR million 68.3 EUR million EBIT margin 4.9 % 7-9 % Earnings after tax ~ EUR million 14.4 EUR million Equity ratio 25.5 % > 30 % * Adjusted on November 3, final Long-term Tunnel under the Suez Canal Egypt Bauma 2016 Munich, Germany Soil replacement Hersbruck, Germany 5

6 Table of Content BAUER Group Strategy, Chances & Markets Financials Q4/FY 2016 & Guidance Appendix 6

7 BAUER Group Mission & Strategy Mission The BAUER Group is a leading provider of services, equipment & products dealing with ground and groundwater. 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 EUR 1.6 billion total Group revenues 4.9 % EBIT margin EUR 68.3 million EBIT 25.5 % equity ratio 10,771 employees FY 2016 World market leadership for foundation technology. Powerful development of drilling applications and services for related markets. Highly innovative products and services related to water, environment and natural resources. Key targets Revenue growth: 3-8 % per year EBIT margin: 7-9 % Equity ratio: > 30 % Ground improvement Germany 7

8 Total Group revenues Longstanding healthy business development in EUR million (segment after deducting Other/Consolidation) Total 1,586 1,800 1,600 Resources 262 1,400 1,200 1,000 Equipment Construction Overseas 493 Construction Domestic 216 Note: from 2003 based on IFRS figures 8

9 Worldwide network More than 110 subsidiaries in about 70 countries Schrobenhausen Permanent Offices: Construction Equipment sales Resources Equipment production Conroe Tianjin Kuala Lumpur 9

10 BAUER Group Chances Construction Equipment Resources Growing construction markets worldwide. Huge pent-up demand in developed countries and in emerging markets. Specialist foundation grows somewhat stronger than construction markets. Construction segment with considerable number of major projects currently under construction and tendered for worldwide. Growth potential in new markets and with specialized machines. Strong position as a lot of efforts were made regarding quality, efficiency and noise reduction Manufacture of customized deep drilling solutions in the joint venture with Schlumberger. Powerful duty-cycle crane series, which entered new markets. Innovative offshore equipment for the foundation of wind farms and tidal turbines. Full-service provider for products and solutions related to water. Ground-breaking projects in the field of cleaning drinking and process water, e.g. a biological water treatment plant in Oman. Promising opportunities due to its focus on growth markets water, environment and natural resources. High expertise in exploration and mining services for natural resources. 10

11 World construction markets Bauer market potential USA / Canada: public demand, infrastructure, power plants, dams, etc. + Other Americas: several chances in Central America o Western Europe: o weak markets with some positive trends Germany: + Eastern Europe: very good slowly positive development Africa: o little construction activities; some special projects; demand for water and resources is slightly better o Middle East: slowing down as a result of oil price o Russia: crisis regarding Ukraine; difficult to predict. Central Asia: + good market potentials Far East: positive development in all areas, especially Hongkong, Malaysia, Indonesia + - Last update: April weak - slightly weak o stable + growing ++ strong growth 11

12 Global economic situation IMF projection of the real annual GDP growth in % United States Europe Germany CIS* Russia Latin America Brazil Sub-Saharan Africa Middle East & North Africa Developing Asia China Australia World Advanced Economies Emerging Markets & Develop. Economies Source: International Monetary Fund, World Economic Outlook Database, October 2016 * CIS = Commonwealth of Independent States (incl. Georgia; excl. Russia) 12

13 Table of Content BAUER Group Strategy, Chances & Markets Financials Q4/FY 2016 & Guidance Appendix 13

14 Financials Revenues, earnings & orders Group Revenues Order backlog in EUR million Total Group revenues Sales revenues in EUR million Earnings Order intake in EUR million EBIT Earnings after tax ,7 76, , ,1 29, ,7 14,4 0-19, in EUR million Q4 Q3 Q2 Q1 1,811 1,485 1, ,

15 BAUER Group Construction segment Highlights FY 2016 Construction Global provider for specialist foundation engineering services Focus on complex, international projects ~ 50/50 infrastructure / industrial Full year 2016: 45 % of total Group revenues EBIT margin: 4.9 % Key targets: ~ 40 % of total Group revenues EBIT margin: 4-6 % Total Group revenues decreased by 2.8 % to EUR million, while EBIT was up from EUR 13.9 million to EUR 30.4 million and earnings after tax from EUR -7.3 million to EUR 9.5 million. EBIT margin of 4.9 % reached the mid-term target range of 4-6 %. In 2015, our US subsidiary had a decisive negative impact on the results. The subsidiaries in Hong Kong and Malaysia had a major negative impact on earnings in 2016, while our participation Wöhr + Bauer GmbH brought additional earnings. Order backlog with EUR million is still on a very good level. The segment has an order book of 9.7 months. The order backlog in the core business of specialist foundation engineering increased considerably. Order intake decreased to EUR million (2015: EUR million), because of additional major projects received in 2015, such as in Canada. Total Group revenues in EUR million FY Q Order backlog in EUR million EBIT in EUR million

16 BAUER Group Construction segment Revenues and order development Construction Total Group revenues in EUR million Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Order backlog in EUR million Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 16

17 BAUER Group Equipment segment Highlights FY 2016 Market leader in specialist foundation equipment New products for mining, deep drilling and offshore drilling About 80 % of sales abroad Full year 2016: 39 % of total Group revenues EBIT margin: 6.8 % Key targets: Equipment ~ 40 % of total Group revenues EBIT margin: % Total Group revenues fell by 13.5 % from EUR million to EUR million. In 2015, revenues from the divestment and revaluation of businesses totaling EUR 77.8 million were included. Therefore, EBIT fell from EUR 99.4 million to EUR 37.0 million; earnings after tax from EUR 65.4 million to EUR 10.9 million. EBIT margin was 6.8 %. Sales revenues fell only slightly by 1.0 % to EUR million. Considering the inconsistent and difficult market environment, the increase in sales and earnings in core operations* shows our strength in the market for specialist foundation equipment and related products. We see growth in our core business of specialist foundation equipment, resulting in a 12.4 % higher order backlog of EUR million (2015: EUR million). The segment has an order book of 2.7 months. Order intake was almost exactly in line with the planned level at the end of the year and increased to EUR million. * Sales revenues of the deep drilling rig business (JV Schlumberger) were included in the figures of 2015, but no longer in Sales revenues in EUR million FY Q Order intake in EUR million EBIT in EUR million

18 BAUER Group Equipment segment Revenues and order development Sales revenues in EUR million Equipment Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Order intake in EUR million Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 18

19 BAUER Group Equipment segment Market development vs. Bauer Equipment Revenues of 50 largest construction equipment manufacturers in USD billion Sales revenues of the Bauer Equipment segment in EUR million Source: internationalconstruction (04/2016) % +5 % Revenues of the world s 50 largest construction equipment manufacturer saw a tremendous decline between 2012 and 2015 of 28%. In China the decline was even worse with a decline of 50% and therefore the main reason for the world s market development. A second reason was the fall in global commodity prices, which hit sales of mining equipment. The very competitive situation because of the surplus production capacities in China is easing. Bauer passed through this situation with a small increase in revenues, which shows the success of the efforts made regarding, quality, efficiency and noise reduction of Bauer equipment. Nonetheless, the market development lead to a weaker margin situation in Equipment. 19

20 BAUER Group Resources segment Highlights FY 2016 Products & services related to water, environment and natural resources. Service provider for the oil, gas and mining industry Full year 2016: 16 % of total Group revenues EBIT margin: n/a Key targets: Resources ~ 20 % of total Group revenues EBIT margin: 6-8 % Total Group revenues significantly increased by 19.5 % to EUR million. EBIT increased from EUR million to EUR -3.2 million and earnings after tax were up from EUR million to EUR -8.5 million. Order backlog grew by 0.8 % to EUR million and is on a good level. The segment has a sustainable order book of 12.6 months. Order intake was EUR million, down 22.6 % from the 2015 figure of EUR million. This is attributed to the major project awarded in 2015 for the remediation of the Kesslergrube landfill site in Grenzach-Wyhlen, worth over EUR 100 million. Once again Resources demanded a great deal of effort from us. Restructuring processes that were launched in the last two years and that involved a large number of areas and products were completed by the end of We expect to make this segment profitable again in the next two years. Total Group revenues in EUR million FY Q Order backlog in EUR million EBIT in EUR million

21 BAUER Group Resources segment Revenues and order development Resources Total Group revenues in EUR million Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Order backlog in EUR million Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 21

22 Financials Regional breakdown Total Group revenues FY 2016 in EUR million Total 1,586 Germany 481 (30 %) Africa 75 (5 %) Americas 236 (15 %) Full year 2015 in EUR million Germany 474 (29 %) Total 1,656 Africa 77 (4 %) Americas 297 (18 %) Europe (other) 95 (6 %) EU excl. Germany 218 (14 %) Asia-Pacific, Far East & Australia 284 (18 %) Middle East & Central Asia 197 (12 %) Europe (other) 71 (4 %) EU excl. Germany 162 (10 %) Asia-Pacific, Far East & Australia 348 (21 %) Middle East & Central Asia 227 (14 %) 22

23 Financials Regional breakdown Segments FY 2016 Construction segment Equipment segment Resources segment in EUR million Total 709 Total 615 Total 262 Germany 216 (30 %) Africa 49 (7 %) Americas 76 (11 %) Asia-Pacific, Far East & Australia 140 (20 %) Germany 164 (16 %) Africa 20 (2 %) Americas 172 (23 %) Germany 167 (64 %) Africa 11 (4 %) Americas 18 (7 %) Asia-Pacific, Far East & Australia 1 (0 %) Middle East & Central Asia 46 (18 %) Europe (other) 45 (6 %) Europe (other) 39 (8 %) Asia-Pacific, Far East & Australia 154 (23 %) Europa (other) 3 (1 %) EU excl. Germany Middle East EU excl. Middle East EU excl. Germany 75 (11 %) & Central Asia 108 (15 %) Germany & Central Asia 60 (7 %) 16 (6 %) 96 (21 %) Figures after deducting Other/Consolidation 23

24 Financials Working capital & net debt requirements and development Working capital / net debt in EUR million Total Group revenues / net debt in EUR million Working capital Total Group revenues Net debt Net debt 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. 350 Comparison with main contractor: they can finance their company by a positive cash flow from jobs

25 Contract value Contract value Financials Working capital needs & cash flow EUR EUR Building construction positive cash contribution Positive cash contribution months Specialist foundation engineering pre-financing need Negative cash contribution 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. Negative cash contribution months 25

26 Financials Income statement FY 2016 in EUR '000 12M M 2016 in % Sales revenues (P&L) 1,378,991 1,396, % Consolidated revenues (P&L) 1,587,946 1,488, % Cost of materials -752, , % Personel expenses -376, , % Other operation expenses -274, , % EBITDA 185, , % Depreciation of fixed assets -81,143-74, % Write-downs of inventories due to use -13,195-15, % EBIT 90,723 68, % Financial income 4,972 5, % Financial expenses -41,982-46, % Share of profit/loss of associated companies (equity method) 2,672-3,021 n/a Earnings before tax (EBT) 56,385 24, % Income tax expense -27,393-9, % Earnings after tax 28,992 14, % of which attributable to shareholders of BAUER AG 29,715 11, % of which attributable to non-controlling interests ,112 n/a 26

27 Financials Balance sheet December 31, 2016 in EUR '000 Dez. 31, 2015 Dez. 31, 2016 in % Assets 1,656,908 1,701, % A. Non-current assets 618, , % I. Intangible assets 27,455 25, % II. Property, plant and equipment and investment property 404, , % III. Investments accounted for using the equity method 132, , % IV. Participations 3,613 9,730 n/a V. Other non-current assets & deferred tax assets 50,267 69, % B. Current assets 1,038,664 1,059, % I. Inventories 444, , % II. Receivables and other assets 544, , % III. Effective income tax refund claims 2,300 4,771 n/a IV. Cash and cash equivalents 47,406 33, % V. Assets classified as held for sale 0 19,608 n/a Equity and liabilities 1,656,908 1,701, % A. Equity 451, , % B. Non-current debt 533, , % I. Provisions for pensions 112, , % II. Non-current liabilities & deferred tax liabilities 421, , % C. Current debt 671, , % I. Financial liabilities 318, , % II. Other current liabilities 317, , % III. Effective income tax obligations 16,955 11, % IV. Provisions 18,354 17, % 27

28 Financials Cash flow statement FY 2016 in EUR '000 12M M 2016 in % Cash flow from operational activity 32, ,879 n/a Cash flow from investment activity -37,492-66, % Cash flow from financing activity 9,119-64,172 n/a Free Cash Flow -5,067 58,204 n/a Changes in liquid funds affecting payments 4,052-5,968 n/a Influence of exchange rate movements on cash 1,519-7,975 n/a Total change in liquid funds 5,571-13,943 n/a Cash and cash equivalents at beginning of reporting period 41,835 47, % Cash and cash equivalents at end of reporting period 47,406 33, % 28

29 BAUER Group Forecast final 2017 forecast Long-term Total Group Revenues 1,586 EUR million ~ 1,700 EUR million Revenue growth -4.2 % 3-8 % EBIT 68.3 EUR million ~ 75.0 EUR million EBIT margin 4.9 % 7-9 % Earnings after tax 14.4 EUR million ~ EUR million Equity ratio 25.5 % > 30 % Tunnel under Suez Canal Egypt Bauma 2016 Munich, Germany Soil replacement Hersbruck, Germany 29

30 Investor Relations Financial calendar & contact Annual Report 2016 April 13, 2017 Annual Press Conference April 13, 2017 Analyst Conference April 13, 2017 Annual General Meeting June 29, 2017 Quarterly Statement Q May 15, 2017 Half-Year Interim Report to June 30, 2017 August 11, 2017 Quarterly Statement 9M/Q November 14, 2017 Investor Relations BAUER Aktiengesellschaft BAUER-Straße Schrobenhausen Germany Tel.: Fax: investor.relations@bauer.de ISIN DE Listing Reuters B5AG.DE Bloomberg B5A GR CDAX, GEX, Classic All Share Prime All Share DAXplus Family 30

31 Table of Content BAUER Group Strategy, Chances & Markets Financials Q4/FY 2016 & Guidance Appendix 31

32 BAUER Group The history 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 FY 2016: Total Group revenues EUR billion, 10,771 employees Company founded as copper forge Early 1970 s: Start of equipment manufacturing Early 1990 s: Build up of specialist construction/ environmental business 32

33 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: ~ 20 % of total Group revenues Activities in environmental technology, deep drilling, well construction, materials Target: ~ 40 % of total Group revenues Global provider for specialist foundation engineering services Specialist construction services Focus on complex, international projects 33

34 What is specialist foundation? Building an excavation pit Supporting Wall Ground Water Underpinning Injection Injection Anchor Sealing Slab Pile Foundation 34

35 What is specialist foundation used for? Applications for projects Buildings Infrastructure Water Energy Industry Foundations Excavation pits Cut-off walls Ground improvement 35

36 BAUER Group Challenges of the world provide chances for the company Urbanization Infrastructure Water The megatrend urbanization leads to more complex inner-city solutions High demand for new infrastructure and for restoration of existing structures The shortage of clean drinking water is one of the worlds biggest problems Environment Energy / Oil & Gas Values The pollution and contamination of soil require innovative purification solutions Energy and resource scarcity provide chances for underwater and deep drilling Changing social values influence the working and corporate environment 36

37 BAUER Group Solutions for the biggest challenges and megatrends Urbanization & Infrastructure Environment Construction Leading position in special foundation engineering. Global activities with presence in over 50 countries worldwide. Construction Innovative construction methods and services with a special focus on environmental issues. Equipment Market leader in specialist foundation equipment. Focus on specialized and high-end equipment. Resources Extensive solutions in the field of decontaminating polluted ground and groundwater and for remediation works. Water Equipment Longstanding experience in the manufacture of well drilling rigs. Resources Innovative products and services for wells and for cleaning of drinking and process water. Energy / Oil & Gas Equipment Customized solutions for deep drilling, which set new standards of safety, efficiency, productivity and service. Resources Comprehensive service provider for clients in the exploration and mining fields. 37

38 Construction Diavik, Canada Diaphragm wall for Diavik Diamond Mines 38

39 Construction Ismailia, Egypt New road tunnel underneath Suez Canal 39

40 Construction Dogern, Germany Dike remediation with Mixed-in-Place euroluftbild.de 40

41 Equipment Product range: Drilling rigs (BG series) ValueLine BG 20 BG 30 BG 38 ValueLine The BG ValueLine is a fully dedicated Kelly drilling rig. 41

42 Equipment Product range: Drilling rigs (BG series) PremiumLine BG 20 BG 42 BG 50 PremiumLine Multi-purpose drilling rigs for various applications of foundation works. 42

43 Equipment Product range: Duty-cycle cranes (MC series) MC 64 MC 96 MC

44 Equipment Product range: Deep Drilling Joint Venture PR 440 of Bauer & Schlumberger In order to meet the upcoming market challenges, out-of-the-box thinking is necessary and therefore customized 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 customized drilling solutions which set new standards of safety, efficiency, productivity and ease of service in the deep drilling business. 44

45 Resources Segment Pool of competences from a single hand Water Environment Natural Resources Industrial Waste Water Process & Produced Water NORM Constructed Wetlands Modelling & Well Design Construction Material for Wells and Geothermal Water Distribution Management Irrigation Systems Remediation Landfill Restoration Decommissioning Demolition Hazardous Waste Management Soil Treatment and Waste Management Exploration Drilling Deep Geothermal Drilling Well Drilling Blast Hole Drilling 45

46 Resources Water Process Water & Water Distribution Management 46

47 Resources Environment Remediation of Kesslergrube landfill, Germany Source: Press picture Roche 47

48 Market environment Germany German construction market December 2016 Employees in 1000 Germany / 2015/ 2016/ Revenues in EUR billion Building construction 69.2 Foundation engineering Orders received * in EUR billion 67.8 Housebuilding 15.3 Industrial building 27.5 Public sector of which 25.0 public buildings 4.3 road building 12.0 underground structures *) only companies > 20 employees Source: Federal Statistical Office, Statistical Office Bavaria 48

49 BAUER share Facts & Figures Listed on Frankfurt stock exchange, Prime Standard, since July 4, 2006 Share performance (01/ /2017) Share capital EUR 73,001, Shares issued 17,131,000 Issue price EUR Shareholder structure in EUR Bauer family % Free float % Earnings per share Share price year end Share price highest Share price lowest Market Cap (in EUR million) ~240 49

50 BAUER share Dividend policy in EUR per share Dividend payment Dividend policy founded on a reasonable balance between shareholders and company fair participation of shareholders continuity over the years safeguarding of the equity base * * Proposed; subject to the consent of the Annual General Meeting to be held on June 29, 2017 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. 50

51 Key Figures Time Line FY 2008 FY 2016 Total Group Revenues (in EUR million) BAUER Group 1, , , , , , , , ,586.1 Construction Equipment Resources Sales Revenues (in EUR million) BAUER Group 1, , , , , , , , ,396.9 Construction Equipment Resources EBIT (in EUR million) BAUER Group Construction Equipment Resources EBIT margin (in %) Q1 14 Q2 14 Q3 14 Q Q1 15 Q2 15 Q3 15 Q Q1 14 Q2 14 Q3 14 Q BAUER Group 13.0% 7.7% 7.8% 6.7% 5.4% 2.1% 1.6% 2.6% 6.7% 10.5% 5.6% 0.4% 4.3% 5.4% 15.1% 6.6% 1.5% 4.1% 5.7% 7.5% 4.9% Construction 7.9% 5.3% 5.7% 3.5% 3.8% 3.2% 0.9% 3.7% 7.9% 3.6% 4.0% 3.1% 3.4% 1.1% 1.0% 2.1% 0.7% 2.8% 4.5% 11.6% 4.9% Equipment 19.7% 11.2% 10.3% 10.4% 6.5% 5.7% 5.4% 6.4% 8.6% 6.2% 6.8% -0.9% 6.8% 12.5% 41.4% 18.1% 5.5% 6.5% 7.6% 7.2% 6.8% Resources 3.8% 3.9% 5.2% 5.4% 6.2% -13.1% -4.9% -2.4% -4.2% 47.5% 8.1% -6.8% -0.7% 2.9% -67.4% -11.0% -2.4% 2.4% 6.2% -12.2% -1.4% In all three segments, total Group revenues and EBIT figures of Q and FY 2015 were influenced by exceptional earnings Q1 14 Q Q1 14 Q2 14 Q3 14 Q4 14 Q3 14 Q Q1 15 Q1 15 Q1 15 Q2 15 Q2 15 Q2 15 Q3 15 Q3 15 Q3 15 Q4 15 Q4 15 Q Q1 16 Q1 16 Q1 16 Q1 16 Q2 16 Q2 16 Q2 16 Q2 16 Q3 16 Q3 16 Q3 16 Q3 16 Q4 16 Q4 16 Q4 16 Q

52 Disclaimer This presentation contains forward-looking statements. Forward-looking statements are statements that are not historical facts, including statements about our beliefs, intentions, expectations, predictions and the assumptions underlying them. These statements are based on factors as they are currently available to the management of BAUER AG and therefore speak only as of the date they are made. We assume no liability to update publicly or conform any of them to future events or future developments. Forward-looking information is subject to various known and unknown risks and 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. 52