BAUER AG. Group Presentation Full year BAUER AG, D Schrobenhausen IR-Presentation_FY_2015

Transcription

1 BAUER AG Group Presentation Full year 2015

2 Key Figures FY 2015 FY 2014* in EUR million FY 2015 in EUR million FY in % Total Group revenues, of which - Germany - International - Construction - Equipment - Resources 1, , , , % +7.6 % +5.6 % +2.4 % % % - Other/Consolidation n/a Sales revenues 1, , ,2 % Order intake 1, , % Order backlog % EBITDA % EBIT % EBIT margin in % (of sales revenues) n/a Earnings after tax % Earnings per share in EUR n/a Equity ratio in % n/a Number of employees (average over the year) 10,405 10, % *Previous years figures adjusted 2

3 Key Figures FY 2015 Main topics Total Group revenues with EUR 1,656.4 million were 6.2 % above previous year (EUR 1,560.2 million). EBIT with EUR 90.7 million was 18.7 % higher than in the previous year (EUR 76.4 million). Net result for the period was EUR 29.0 million (previous year: EUR 15.7 million). The result figures for the 2015 business year are composed of a large number of positive and negative individual issues. Revenues of the Construction segment increased by 2.4 % to EUR million. EBIT decreased by 46.5 % to EUR 13.9 million. The net result was EUR -7.3 million after EUR 2.5 million in Our subsidiary in the USA was the determinant of the unsatisfactory trend in results for the segment. Sales revenues of the Equipment segment increased by 2.9 % to EUR million. EBIT was EUR 99.4 million and net result was EUR 65.4 million. The agreement on our joint venture with Schlumberger in the field of deep drilling rigs and the sale of shares of a subsidiary in the Equipment segment generated substantial exceptional earnings. Disregarding the special influences on the figures, we achieved a slight increase in sales and good operational earnings. Revenues of the Resources segment decreased by 12.3 % to EUR million. EBIT came to EUR million and net result was EUR million. Figures were impacted by restructuring measures. Also stagnant raw material markets and low oil prices curbed the utilization of our drilling rigs in Africa and Jordan, which led to considerable losses. Order backlog of the Group developed extremely well and grew by 30.5 % to EUR million (previous year: EUR million). In the Construction and Resources segments, we were able to achieve relatively high order backlogs. Forecast for 2016: total Group revenues of around EUR 1.65 billion, EBIT of around EUR 75 million and earnings after tax of around EUR 20 to 25 million. 3

4 Table of Content BAUER Group Strategy, Chances & Markets Financials FY 2015 & Guidance Appendix 4

5 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 1.66 billion total Group revenues 6.6 % EBIT margin EUR 90.7 million EBIT 27.2 % equity ratio 10,738 employees FY 2015 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 % Bagatelle Dam project Mauritius 5

6 BAUER Group The three segments Construction Equipment Resources Global provider for specialist foundation engineering services Focus on complex, international projects ~ 50/50 infrastructure / industrial Market leader in specialist foundation equipment New products for mining, deep drilling and offshore drilling 80 % of sales abroad Products & services related to water, environment and natural resources. Service provider for the oil, gas and mining industry Full year 2015: 44 % of total Group revenues * EBIT margin: 2.1 % * Key targets: ~ 40 % of total Group revenues EBIT margin: 4-6 % Full year 2015: 43 % of total Group revenues * EBIT margin: 18.1 % * Key targets: ~ 40 % of total Group revenues EBIT margin: % Full year 2015: 13 % of total Group revenues * EBIT margin: n/a * Key targets: ~ 20 % of total Group revenues EBIT margin: 6-8 % * Figures IR-Presentation_FY_2015 include positive and negative exceptional earnings in all segments 6

7 Total Group Revenues Longstanding healthy business development in EUR million (segment after deducting Other/Consolidation) Total 1,656 1,800 1,600 Resources 218 1,400 1,200 1,000 Equipment Construction Overseas Note: from 2003 based on IFRS figures Construction Domestic 182 7

8 Worldwide network More than 110 subsidiaries in about 70 countries Schrobenhausen Permanent Offices: Construction Equipment sales Resources Equipment production Conroe 156 Tianjin 215 Kuala Lumpur 129 8

9 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 9

10 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. 10

11 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. Manufacture of customized deep drilling solutions, which set new standards of safety, efficiency, productivity and service. 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 the resources water, oil, gas and geothermal energy. 11

12 World construction markets Bauer market potential USA / Canada: + public demand, power plants, dams, etc. Other Americas: several chances in Central America. Western Europe: weak markets Germany: quite good. o + o Africa: slight construction activities, regional growth (Ethiopia, Algeria); demand for water and resources + Eastern Europe: slowly positive development o Middle East: stable, especially Qatar Abu Dhabi, Saudi Arabia; increasing risk regarding 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 12

13 Global economic situation IMF projection of the real annual GDP growth in % United States European Union Germany Russia CIS* 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, April 2016 * CIS = Commonwealth of Independent States (incl. Georgia; excl. Russia) 13

14 Table of Content BAUER Group Strategy, Chances & Markets Financials FY 2015 & Guidance Appendix 14

15 Financials Revenues, earnings & orders Group Revenues in EUR million Total Group revenues Sales revenues 1,800 1,656 1,560 1,436 1,504 1,344 1,402 1,376 1,379 1,350 Order backlog in EUR million 1, Earnings Order intake in EUR million in EUR million EBIT Earnings after tax % % +2.5 % ,471 1,485 1, Q Q Q Q ,811

16 Financials Revenues, earnings & orders Segments Revenues Order intake in EUR million Construction in EUR million Equipment Resources Construction Equipment Resources Total Group revenues Sales revenues Total Group revenues Sales revenues Total Group revenues Sales revenues FY 2014* FY 2015 Earnings Total Group revenues of the Equipment and Resources segments were markedly influenced by exceptional earnings and losses, which makes a comparison with the previous year difficult. 1, , % % % % % Q Q FY 2014* FY 2015 Order backlog in EUR million Construction Equipment Resources in EUR million Construction Equipment Resources EBIT Earnings after tax EBIT Earnings after tax EBIT Earnings after tax Earnings figures of all three segments were markedly influenced by exceptional earnings and losses, which makes a comparison with the previous year difficult. *Previous years figures adjusted FY 2014* FY 2015 FY 2014* FY 2015 The totals IR-Presentation_FY_2015 include Other/Consolidation % % % Order book (in months) Group Construction Equipment Resources

17 Financials Regional breakdown Total Group revenues FY 2015 in EUR million Total 1,656 Germany 474 (29 %) Africa 77 (4 %) Americas 297 (18 %) Asia-Pacific, Far East & Australia 348 (21 %) Full year 2014 in EUR million Germany 440 (28 %) Total 1,560 Africa 62 (4 %) Americas 172 (11 %) Europe (other) 125 (8 %) EU excl. Germany 152 (10 %) Asia-Pacific, Far East & Australia 377 (24 %) Middle East & Central Asia 232 (15 %) Europe (other) 71 (4 %) EU excl. Germany 162 (10 %) Middle East & Central Asia 227 (14 %) 17

18 Financials Regional breakdown Segments FY 2015 Construction segment Equipment segment Resources segment in EUR million Total 733 Total 705 Total 218 Germany 182 (25 %) Africa 47 (6 %) Americas 113 (16 %) Asia-Pacific, Far East & Australia 191 (26 %) Germany 164 (23 %) Africa 20 (3 %) Americas 172 (24 %) Germany 128 (59 %) Africa 11 (5 %) Americas 12 (5 %) Asia-Pacific, Far East & Australia 2 (1 %) Middle East & Central Asia 40 (18 %) Europe (other) 30 (4 %) Europe (other) 39 (6 %) Asia-Pacific, Far East & Australia 154 (22 %) Europe (other) 2 (1 %) EU excl. Germany 43 (6 %) Middle East & Central Asia 127 (17 %) EU excl. Germany 96 (14 %) Middle East & Central Asia 60 (8 %) EU excl. Germany 23 (11 %) Figures after deducting Other/Consolidation 18

19 Net financial Financials Working capital needs & net debt in EUR million 800 Net working capital Bauer s business model with its three segments requires considerably more working capital than other companies in construction markets in EUR million debt Pensions Net financial debt & pensions 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. 19

20 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 20

21 Financials Income statement FY 2015 in EUR '000 12M/ M/2015 in % Consolidated revenues (P&L) ,4% Sales revenues (P&L) ,2% Material costs ,4% Personnel expenses ,9% Depreciation and amortization of fixed assets ,0% Write-downs of inventories due to use ,4% Other operating expenses ,0% EBIT ,7% Financial income ,9% Financial expenses ,0% Result from associated entities n/a Earnings before tax (EBT) ,2% Income tax ,1% Net result for the period ,4% of which attributable to shareholders of BAUER AG n/a of which attributable to non-controlling interest n/a 21

22 Financials Balance sheet December 31, 2015 in EUR '000 Dec. 31, 2014 Dec. 31, 2015 in % Assets ,2% Intangible assets ,3% Property, plant and equipment ,5% Long term financial assets n/a Other long term assets & deferred taxes ,2% Inventories ,2% Receivables and other assets ,6% Effective income tax refund claims ,6% Cash and cash equivalents ,3% Equity and liabilities ,2% Equity ,7% Provisions for pensions ,5% Non-current liabilities ,6% Current liabilities ,1% Other provisions (a) / tax ,1% (a) Other provisions also include short term portion of pension provisions 22

23 Financials Cash flow statement FY 2015 in EUR '000 12M/ M/2015 in % Cash flow from operating activities ,9% Cash flow from investing activities ,0% Cash flow from financing activities n/a Free Cash Flow n/a Changes in liquid funds affecting payments n/a Influence of exchange rate movements on cash ,4% Total change in liquid funds n/a Cash at beginning of reporting period ,9% Cash at end of reporting period ,3% 23

24 Guidance 2016 Business year without exceptional earnings expected BAUER Group 2015e 2015 final 2016e Total Group Revenues ~ 1,600 EUR million 1,656 EUR million ~ 1,650 EUR million EBIT ~ 75 EUR million 90.7 EUR million ~ 75 EUR million Earnings after tax ~ EUR million 29.0 EUR million ~ EUR million Bagatelle dam Mauritius In-house exhibition 2015 Schrobenhausen Water treatment plant Leuna, Germany 24

25 BAUER AG Financial calendar 2016 Publication Annual Report 2015 April 18, 2016 Annual Press Conference April 18, 2016 Analyst Conference April 18, 2016 Annual General Meeting June 23, 2016 Quarterly Statement Q May 13, 2016 Half-Year Interim Report to June 30, 2016 August 12, 2016 Quarterly Statement 9M/Q November 14, 2016 Investor Relations BAUER Aktiengesellschaft BAUER-Straße Schrobenhausen Germany ISIN Reuters Bloomberg DE B5AG.DE B5A GR Listing CDAX, GEX, Classic All Share Prime All Share DAXplus Family Tel.: Fax: investor.relations@bauer.de Get the BAUER App for Apple and Android

26 Table of Content BAUER Group Strategy, Chances & Markets Financials 9M 2015 & Guidance Appendix 26

27 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 2015: Total Group revenues EUR billion, 10,738 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 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, mining, 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 28

29 BAUER Group Headquarters and plant Schrobenhausen, Germany 29

30 What is specialist foundation? Building an excavation pit Supporting Wall Ground Water Underpinning Injection Injection Anchor Sealing Slab Pile Foundation 30

31 What is specialist foundation used for? Applications for projects Buildings Infrastructure Water Energy Industry Foundations Excavation pits Cut-off walls Ground improvement 31

32 Construction Dubai, VAE Vibro-compaction work for Palm Jumeirah 32

33 Construction Doha, Qatar Construction pit for the Mozoon Towers 33

34 Construction Istanbul, Turkey Diaphragm wall for Eurasia tunnel 34

35 Construction Zwenkau, Germany Construction works for Harth canal euroluftbild.de 35

36 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. 36

37 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. 37

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

39 Equipment Product range: Deep Drilling (PR series) PR 440 M2 In order to meet the upcoming market challenges, out-of-the-box thinking is necessary and therefore customized rig solutions are of growing importance. PR 200 Based on more than 40 years of experience in engineering and manufacturing of drilling rigs, Bauer develops and manufactures customized drilling solutions which set new standards of safety, efficiency, productivity and ease of service in the deep drilling business. 39

40 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 Oil & Gas Drilling Well Drilling Blast Hole Drilling 40

41 Resources Segment The Competence Centers Environment Remediation Waste Treatment & Disposal Constructed Wetlands Water Treatment Water Process Technology Beverage & Biotec Water Well Design & Construction Natural Resources Drilling Technologies 41

42 Resources Water Process Water & Water Distribution Management 42

43 Resources Environment Soil remediation in Germany 43

44 Resources Environment Reed Bed Water Treatment Plant in Oman 44

45 Resources Natural Resources Oil and Exploration Drilling in Jordan 45

46 Market environment Germany German construction market December 2015 Germany Employees in ,4 2015/ 2014/ 2015/ ,9 0,1 0,8 Revenues in EUR billion 101,0 Building construction 65,0 Foundation engineering 36,0-13,6-17,6-5,1 4,1 4,5 3,5 1,6 1,4 1,9 Orders received * in EUR billion Housebuilding 13,1 Industrial building 24,6 Public sector 59,1 21,5 of which public buildings 4,0 road building 10,1 underground structures 7,5-24,7-0,5 5,2-36,2 4,3 13,3-23,0-0,2 1,1-17,7-3,5 5,4-35,8-3,5 9,3 14,4-33,1-2,2-5,2 2,9 7,0 *) only companies > 20 employees Source: Federal Statistical Office, Statistical Office Bavaria 46

47 BAUER share Facts & Figures Listed on Frankfurt stock exchange, Prime Standard, since July 4, 2006 Share performance (01/ /2016) Share capital EUR 73,001, Shares issued 17,131,000 Issue price EUR Shareholder structure in EUR Earnings per share Bauer family % Free float % Share price year end Share price highest Share price lowest Market Cap (in EUR million) ~250 47

48 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 23, 2016 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. 48

49 Key Figures Time Line FY 2008 FY 2015 Total Group Revenues (in EUR million) BAUER Group 1.527, , , , ,8 330,7 390,7 382,6 400, ,2 378,1 371,1 413,9 397, ,2 409,1 371,3 414,5 461, ,4 Construction 700,9 570,0 615,4 606,6 655,2 153,5 192,7 183,0 212,5 741,7 178,5 173,0 181,8 192,3 725,6 193,5 176,4 194,5 178,5 742,9 Equipment 780,1 608,5 581,7 636,5 589,1 152,4 157,3 163,9 155,0 628,6 163,8 157,6 186,1 131,7 639,2 173,8 159,6 163,2 256,5 753,1 Resources 135,1 174,3 177,7 211,5 262,8 39,1 54,7 53,2 41,9 188,9 48,4 52,5 59,6 92,3 252,8 54,3 47,8 75,1 44,4 221,6 Sales Revenues (in EUR million) BAUER Group 1.290, , , , ,4 262,6 344,7 361,2 433, ,2 313,4 332,2 368,1 362, ,7 299,6 342,4 376,8 360, ,0 Construction 584,3 487,9 505,8 506,2 579,1 124,4 167,8 182,4 182,9 657,5 167,8 160,8 163,5 154,5 646,6 156,0 163,9 179,4 151,5 650,8 Equipment 601,2 456,5 469,3 511,4 520,6 104,1 125,5 127,5 204,5 561,6 102,9 120,6 147,4 161,8 532,7 100,5 137,4 129,3 180,8 548,0 Resources 105,1 152,0 156,4 201,5 244,3 34,0 51,4 51,4 45,8 182,6 42,5 50,7 57,2 45,5 195,9 42,9 40,9 67,9 27,6 179,3 EBIT (in EUR million) BAUER Group 167,5 84,4 88,4 82,3 72,0 2,3 5,1 5,3 17,4 30,1 4,9 8,7 24,7 38,1 76,4 1,2 14,8 20,4 54,3 90,7 Construction 46,3 25,7 28,8 17,9 22,0 0,3 2,6 15,5 2,8 21,2 1,5 6,0 12,9 5,6 26,0 4,9 5,5 2,0 1,5 13,9 Equipment 118,3 51,3 48,3 53,0 34,0 3,8 2,0 7,5 18,9 32,2 5,6 7,7 12,7 10,0 36,0-0,9 9,3 16,2 74,8 99,4 Resources 4,0 6,0 8,1 10,9 15,2-2,4-0,1-17,6-3,9-24,0-2,1-1,2-2,4 21,6 15,9-2,9-0,3 2,0-18,6-19,8 EBIT margin (in %) Q1 13 Q1 13 Q1 13 Q2 13 Q2 13 Q2 13 Q3 13 Q Q1 14 Q2 14 Q3 14 Q Q3 13 Q Q1 14 Q2 14 Q3 14 Q4 14 Q3 13 Q Q1 14 Q2 14 Q3 14 Q Q1 13 Q2 13 Q3 13 Q Q1 14 Q2 14 Q3 14 Q4 14 BAUER Group 13,0% 7,7% 7,8% 6,7% 5,4% 0,9% 1,5% 1,5% 4,0% 2,1% 1,6% 2,6% 6,7% 10,5% 5,6% 0,4% 4,3% 5,4% 15,1% 6,6% Construction 7,9% 5,3% 5,7% 3,5% 3,8% 0,2% 1,5% 8,5% 1,5% 3,2% 0,9% 3,7% 7,9% 3,6% 4,0% 3,1% 3,4% 1,1% 1,0% 2,1% Equipment 19,7% 11,2% 10,3% 10,4% 6,5% 3,7% 1,6% 5,9% 9,2% 5,7% 5,4% 6,4% 8,6% 6,2% 6,8% -0,9% 6,8% 12,5% 41,4% 18,1% Resources 3,8% 3,9% 5,2% 5,4% 6,2% -7,1% -0,2% -34,2% -8,5% -13,1% -4,9% -2,4% -4,2% 47,5% 8,1% -6,8% -0,7% 2,9% -67,4% -11,0% Q1 15 Q1 15 Q1 15 Q1 15 Q2 15 Q2 15 Q2 15 Q2 15 Q3 15 Q3 15 Q3 15 Q3 15 Q4 15 Q4 15 Q4 15 Q Figures 2014 adjusted; in all three segments, total Group revenue and EBIT figures of Q and FY 2015 were influenced by exceptional earnings 49

50 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. 50