BAUER Aktiengesellschaft

Transcription

1 BAUER Aktiengesellschaft Group Presentation First Quarter 2012 In-house exhibition in Schrobenhausen, Germany

2 Key Figures FY ,600 Total Group revenues (in EUR million) 1,527 1,276 1,304 1, Net profit (in EUR million) , Orders in hand (in EUR million) Employees (in average) ,000 8,674 8,872 9,094 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. MC 128 Cutter works in Jeddah, Saudi Arabia 3

4 Key Figures Q Q in EUR million Q in EUR million FY in % Total Group revenues, of which - Germany - International - Construction - Equipment - Resources % 17.0 % 8.7 % 26.1 % % 48.6 % - Consolidation / Other n/a Sales revenues % 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 Equity ratio in % n/a Number of employees (average over the year) 9,653 10, % 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 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 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 32 % of revenues* Exploration & Mining Services about 23 % of revenues* Environment about 45 % 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 2011 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 209 Far East crisis Equipment 601 German reunification Construction Overseas 405 Construction Domestic 157 Note: based on HGB figures, from 2003 based on IFRS figures 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 Shanghai BAUER Technologies, Shanghai, China BAUER Manufacturing Inc. BAUER Group, plant Edelshausen near GWE Group, Peine, Germany BAUER Equipment Malaysia Conroe, Texas, USA Schrobenhausen, Germany Shah Alam, Malaysia 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, 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 12

13 2 World construction markets Bauer market potential + Western Europe: declining markets, Germany weak for big projects 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, downturn in Dubai Summary: IR-Presentation_9M weak - slightly weak stable + growing ++ strong growth 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 13 & reduction of energy consumption); exploration and downstreamed stages: Liquefaction plants (gas), refineries, power plants 13

14 2 Market environment Orders & Currency risks Order backlog (Orders in hand) Currency Risks Q TOTAL EUR 752 million Construction EUR 463 million Equipment EUR 134 million Resources EUR 155 million * incl. running small-type orders Reach in months in relation to total Group revenues full year months 9.5 months 2.4 months* 8.8 months 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 Construction Germany Expected order intake 2012 Construction International + Equipment BAUER Maschinen GmbH Equipment Subsidiaries Resources + 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 -- weak - slightly weak adequate + well adequate ++ very well adequate 14

15 3 Regional breakdown Total Group revenues FY 2011 in EUR million Total 1,372 Germany 370 (27 %) Africa 67 (5 %) Americas 191 (14 %) Asia-Pacific, Far East & Australia 292 (21 %) Full year 2010 in EUR million Germany 339 (26 %) Total 1,304 Africa 70 (5 %) Americas 155 (12 %) Europe (other) 131 (10 %) EU excl. Germany 153 (12 %) Asia-Pacific, Far East & Australia 252 (19 %) Middle East & Central Asia 204 (16 %) Europe (other) 127 (9%) EU excl. Germany 154 (11 %) Middle East & Central Asia 171 (13 %) 15

16 3 Regional breakdown Construction, Equipment, Resources FY 2011 Construction segment Equipment segment Resources segment in EUR million Total 562 Total 601 Total 209 Germany 157 (28 %) Africa 36 (6 %) Americas 77 (14 %) Asia-Pacific, Far East & Australia 138 (25 %) Germany 111 (19 %) Africa 14 (2 %) Americas 112 (19 %) Asia-Pacific, Far East & Australia 153 (25 %) Germany 102 (49 %) Africa 17 (8 %) Americas 2 (1 %) Asia-Pacific, Far East & Australia 1 (1 %) Europe (other) 33 (6 %) EU excl. Germany 53 (9 %) Middle East & Central Asia 68 (12 %) Europe (other) 91 (15 %) EU excl. Germany 82 (14 %) Middle East & Central Asia 38 (6 %) Middle East & Central Asia 65 (31 %) Europe (other) 3 (1 %) Figures after deducting Other/Consolidation EU excl. Germany 19 (9 %) 16

17 4 Financials Revenues, earnings & orders Revenues (in EUR million) Orders in hand (in EUR million) Total Group revenues Sales revenues 1,600 1,200 1,276 1,096 1,304 1,132 1,372 1, Q Q Q Q Earnings (in EUR million) Order intake (in EUR million) EBIT Net profit , % % 1, , % Q Q Q Q4 Q3 Q2

18 4 Financials Working capital needs & net debt 720 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 of working capital in the balance sheet during the year are typically higher than year-end positions Q Q Equipment segment: Net financial debt Pensions Net debt (in EUR million) 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 Q Q

19 Contract value Contract value 4 EUR 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 2011: Negative cash contribution - The special effects end of 2011 are still on-going and keep net debt positions high. - In the second half of the year we expect to be able to lower the effects of last year months 19

20 4 Financials Revenues Q in EUR '000 Q Q Q1 in % FY 2011 Total Group revenues 307, , % 1,371,831 Sales revenues, Construction 112, , % 482,658 Sales revenues, Equipment 108,146 93, % 534,999 Sales revenues, Resources 34,377 53, % 201,549 Sales revenues, Other n/a 381 Sales revenues (external) 255, , % 1,219,587 Consolidated revenues (P&L) 301, , % 1,327,085 Orders in hand 671, , % 749,968 20

21 4 Financials Earnings Q in EUR '000 Q Q Q1 in % FY 2011 EBITDA 25,493 28, % 164,496 Margin (a) 10.0% 9.8% n/a 13.5% EBIT 6,669 6, % 82,300 EBIT margin (a) 2.6% 2.2% n/a 6.7% EBIT Construction segment -1,252 2,167 n/a 17,631 EBIT margin, Construction segment (a) -1.1% 1.6% n/a 3.7% EBIT Equipment segment 9,231 4, % 53,216 EBIT margin, Equipment segment (a) 8.5% 5.2% n/a 9.9% EBIT Resources segment n/a 10,897 EBIT margin, Resources segment (a) -1.7% -1.2% n/a 5.4% Net income (b) -2,636-4,848 n/a 34,115 Margin (a) -1.0% -1.7% n/a 2.8% Earnings per share (in EUR) n/a 1.86 n/a not applicable (a) of sales revenues (b) pre-minorities 21

22 4 Financials Income statement March 31, 2012 in EUR '000 March 31, 2011 March 31, 2012 in % FY 2011 Consolidated revenues (P&L) 301, , % 1,327,085 Sales revenues (P&L) 255, , % 1,219,587 Material costs -150, , % -672,807 Personnel costs -71,067-78, % -298,761 Depreciation and amortization of fixed assets -15,353-18, % -66,287 Write-downs of inventories due to use -3,471-3, % -15,909 Other operation expenses -54,172-54, % -191,021 EBIT 6,669 6, % 82,300 Financial income 2,193 1, % 6,624 Financial expenses -9,650-11, % -40,702 Result from associated entities n/a -689 Profit before tax (EBT) ,486 n/a 47,533 Income tax -1,710-1,362 n/a -13,418 Net income -2,636-4,848 n/a 34,115 whereof attributable to shareholders of BAUER AG -3,269-4,677 n/a 31,933 whereof minority interest n/a 2,182 22

23 4 Financials Balance sheet March 31, 2012 in EUR '000 March 31, 2011 March 31, 2012 in % Dec 31, 2011 Assets 1,404,643 1,564, % 1,487,450 Intangible assets 23,107 32, % 30,303 Property, plant and equipment 429, , % 458,572 Long term financial assets 14,607 17, % 18,635 Other long term assets & deferred taxes 27,677 26, % 26,285 Receivables from concession arrangements 42,944 42, % 43,975 Inventories 451, , % 470,646 Receivables and other assets 366, , % 409,301 Effective income tax refund claims 8,112 6, % 4,786 Cash and cash equivalents 41,294 32, % 24,947 Equity and liabilities 1,404,643 1,564, % 1,487,450 Equity 430, , % 470,434 Pension provisions 48,013 50, % 49,858 Non-current liabilities 394, , % 413,027 Current liabilities 496, , % 529,692 Other provisions (a) / tax 34,592 23, % 24,439 (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 2011 Cash flow from operating activities -28,427-45,271 n/a 8,459 Cash flow from investing activities -10,505-21,640 n/a -84,656 Cash flow from financing activities 52,242 74, % 73,466 Free Cash Flow -38,932-66,911 n/a -76,197 Changes in liquid funds affecting payments 13,310 7, % -2,731 Influence of exchange rate movements on cash % 65 Total change in liquid funds 13,681 7, % -2,666 Cash at beginning of reporting period 27,613 24, % 27,613 Cash at end of reporting period 41,294 32, % 24,947 24

25 5 Guidance 2012 Top-line growth with stable profitability 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 * Guidance published October 31, 2011 Presidential Palace Abu Dhabi, U.A.E In-house exhibition, Schrobenhausen 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, 9,646 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 New Brunswick, Canada Bridge foundation Route 1 29

30 B Construction Jeddah, Saudi Arabia Cutter works for North Lift Station 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 Bielefeld, Germany Foundation works at the University 33

34 C Equipment BAUER Maschinen Group In-House Exhibition

35 C Equipment Product range: BG-systems (BG 12 H BG 50) Small-sized (BG 12 H BG 18 H) Medium-sized (BG 20 H BG 28) Large-sized (BG 36 BG 50) BG 12 H BG 15 H BG 18 H BG 20 H BG 24 H BG 28 BG 30 BG 36 BG 40 BG knm* 151 knm* 177 knm* 200 knm* 222 knm* 269 knm* 295 knm* 367 knm* 390 knm* 468 knm* * Torque 35

36 C Equipment Product range: Foundation Cranes MC 32 MC 96 MC

37 C Equipment Product range: Deep Drilling RB 50 TBA 300 TBA 300/440 M1 37

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 Oil drilling rig of Site Goup Jordan Oil shale exploration 40

41 D Resources Environment Division One third of total area 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 2011 West- Germany December 2011 East- 2011/ 2010/ 2011/ Germany West Germany Change in % / 2010/ 2011/ 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 5 BAUER share Facts & Figures Listed on Frankfurt stock exchange, Prime Standard since July 4, 2006 Shares issued 17,131,000 Issue price EUR Listed in SDAX (MDAX from to ) Share performance (2011 YTD 2012) DAX SDAX BAUER AG Trading volume 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) Shareholder structure Year high / Year low 2011 EUR / EUR ( / ) YTD high / YTD low 2012 EUR / EUR ( / ) Bauer family % Free float % Market capitalisation around EUR 300 million Number of shares outstanding: 17,131,000 43

44 5 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 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. 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 09 Q1 09 Q2 09 Q2 09 Q3 09 Q Q1 10 Q1 10 Q1 09 Q2 09 Q3 09 Q Q1 10 Q2 10 Q1 09 Q2 09 Q3 09 Q3 09 Q Q Q1 10 Q2 10 Q2 10 Q3 10 Q4 10 Q2 10 Q3 10 Q4 10 Q3 10 Q Q1 11 Q2 11 Q3 11 Q Q1 11 Q2 11 Q3 11 Q4 11 BAUER Group 8.6% 8.2% 6.1% 7.8% 7.7% 2.6% 6.9% 9.1% 11.3% 7.8% 2.6% 7.3% 7.1% 8.9% 6.7% 2.2% Construction 4.4% 7.2% 6.2% 3.7% 5.3% 2.5% 4.7% 8.3% 6.6% 5.7% -1.2% 3.3% 5.4% 6.7% 3.6% 1.6% Equipment 16.1% 10.9% 6.7% 9.8% 11.2% 3.7% 10.4% 9.8% 13.8% 10.3% 8.5% 12.2% 8.4% 10.6% 9.9% 5.2% Resources n/a 4.6% 5.3% 7.0% 3.9% 0.3% 3.8% 8.0% 7.3% 5.2% -1.7% 6.6% 8.0% 5.6% 5.4% -1.1% Q3 10 Q Q1 11 Q2 11 Q3 11 Q Q1 11 Q2 11 Q3 11 Q Q1 12 Q1 12 Q1 12 Q

46 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 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