BAUER AG. Group Presentation Full year BAUER AG, D Schrobenhausen IR-Presentation_FY_2014

Transcription

1 BAUER AG Group Presentation Full year 2014

2 Key Figures FY 2014 FY 2013* in EUR million FY 2014 in EUR million FY in % Total Group revenues, of which - Germany - International - Construction - Equipment - Resources 1, , , , % 7.3 % 2.4 % -3.9 % 3.7 % 33.9 % - Other/Consolidation n/a Sales revenues 1, , % Orders received 1, , % Orders in hand % EBITDA % EBIT n/a 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) 10,264 10, % *Previous years figures adjusted 2

3 Key Figures FY 2014 Main topics Total Group revenues with EUR 1,560.2 million were 3.7 % above previous year (EUR 1,504.2 million). EBIT with EUR 76.4 million was considerably higher than in the previous year with EUR 30.1 million. Net profit was EUR 15.7 million (previous year: EUR million). Revenues of the Construction segment decreased by 3.9 % to EUR million. EBIT with EUR 25.1 million raised against the previous year comparative of EUR 21.2 million. Net profit decreased markedly from EUR 5.5 million to EUR 1.9 million due to economic problems with a dam project in USA. Sales revenues of the Equipment segment fell by 2.9 % to EUR million. EBIT increased by 14.6 % from EUR 32.2 million to EUR 36.9 million. Net profit increased from EUR 5.1 million to EUR 9.5 million. Revenues of the Resources segment grew significantly by 33.9 % from EUR million to EUR million. EBIT with EUR 15.9 million was significantly positive after the loss 2013 (EUR million). Net profit was EUR 4.3 million (previous year: EUR million). The results of the segment were significantly influenced by a one-time income. The increase in revenues includes a profit of EUR 36.5 million from the sale of 21 % of the shares in the subsidiary in Oman. Order backlog with EUR million (previous year: EUR million) is on a reasonable level. Forecast for 2015: total Group revenues of around EUR 1.6 billion, an EBIT of around EUR 75 million and a profit after tax of around EUR 18 to 23 million. 3

4 Contents 1 Overview BAUER Group p. 5 2 Challenges & Chances p. 9 3 Market environment p Financials p Guidance Appendix p. 23 p. 24 4

5 1 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 1.56 billion total Group revenues 5.6 % EBIT margin EUR 76.4 million EBIT 26.6 % equity ratio 10,405 employees FY 2014 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 % Railway project Schwarzkopf Tunnel, Germany 5

6 1 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 2014: 45 % of total Group revenues EBIT margin: 4.0 % Key targets: ~ 40 % of total Group revenues EBIT margin: 4-6 % Full year 2014: 39 % of total Group revenues EBIT margin: 6.8 % Key targets: ~ 40 % of total Group revenues EBIT margin: % Full year 2014: 16 %* of total Group revenues EBIT margin: 8.1 %* Key targets: ~ 20 % of total Group revenues EBIT margin: 6-8 % * Figures IR-Presentation_FY_2014 include a one-time income in Resources 6

7 1 Total Group Revenues Longstanding healthy business development in EUR million (segment after deducting Other/Consolidation) Financial crisis Total 1,560 Resources 249 Equipment 612 Far East crisis German reunification Construction Overseas 510 Construction Domestic 189 Note: from 2003 based on IFRS figures 7

8 1 Worldwide network More than 110 subsidiaries in about 70 countries Permanent Offices: Construction Equipment sales Resources Equipment production locations BAUER Maschinen Kurgan, Kurgan, Russia BAUER Tianjin Technologies, Tianjin, China BAUER Manufacturing Inc. BAUER Maschinen Group, plant Aresing near GWE Group, plant Luckau, BAUER Equipment Malaysia Conroe, Texas, USA Schrobenhausen, Germany Germany Shah Alam, Malaysia 8

9 2 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 2 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 2 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 3 World construction markets Bauer market potential USA / Canada: + public demand, power plants, dams, etc. Other Americas: several chances in Central America. Germany: quite good. Western Europe: - weak markets + o Africa: slight construction activities, regional growth (Angola, Algeria); demand for water and resources + Eastern Europe: slowly positive development Middle East: + stable, especially Abu Dhabi, Saudi Arabia; Qatar many projects - Russia: Crisis regarding Ukraine; difficult to predict. Central Asia: + good market potentials Far East: positive development in all areas, especially Hongkong, Malaysia, Indonesia ++ o -- weak - slightly weak o stable + growing ++ strong growth 12

13 3 Global economic situation IMF projection of the real annual GDP growth in % United States European Union 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 2014 * CIS = Commonwealth of Independent States (incl. Georgia) 13

14 4 Financials Revenues, earnings & orders Group Revenues Orders in hand in EUR million 1,600 1,200 1,372 1,220 Total Group revenues 1,436 1,344 in EUR million Sales revenues 1,560 1, ,402 1, * Earnings Orders received in EUR million in EUR million EBIT Net profit Q * * 2014 * Previous IR-Presentation_FY_2014 years figures adjusted 14 Q4 Q3 Q2 1,507 1, % +1.0 % ,485 1, %

15 4 Financials Revenues, earnings & orders Segments Total Group revenues Orders received in EUR million Construction Equipment Resources in EUR million Construction Equipment Resources 1,504 1, % n/a 92 1,558 1, % n/a % % % % % % % % 165 FY 2013* FY 2014* Q4 2013* Q4 2014* EBIT FY 2013* FY 2014* Q4 2013* Q4 2014* Orders in hand in EUR million Construction Equipment Resources in EUR million Construction Equipment Resources EBIT EBIT margin (in %) n/a n/a EBIT EBIT margin (in %) 5.7 6, EBIT EBIT margin (in %) % % FY 2013* FY 2014* Q4 2013* Q4 2014* FY 2013* FY 2014* The totals IR-Presentation_FY_2014 include Other/Consolidation 15 * Previous years figures adjusted; 2014 Resources figures include a one-time income % 159 Order book (in months) Group Construction Equipment Resources

16 4 Financials Regional breakdown Total Group revenues 2014 in EUR million Total 1,560 Germany 440 (28 %) Africa 62 (4 %) Americas 172 (11 %) Asia-Pacific, Far East & Australia 377 (24 %) Full year 2013 (adjusted) in EUR million Germany 410 (27 %) Total 1,504 Africa 58 (4 %) Americas 186 (13 %) Europe (other) 155 (10 %) EU excl. Germany 168 (11 %) Asia-Pacific, Far East & Australia 364 (24 %) Middle East & Central Asia 163 (11 %) Europe (other) 125 (8 %) EU excl. Germany 152 (10 %) Middle East & Central Asia 232 (15 %) 16

17 4 Financials Regional breakdown Segments (FY 2014) Construction segment Equipment segment Resources segment in EUR million Total 699 Total 612 Total 249 Germany 189 (27 %) Africa 49 (7 %) Americas 68 (10 %) Asia-Pacific, Far East & Australia 199 (29 %) Germany 118 (19 %) Africa 9 (1 %) Americas 96 (16 %) Asia-Pacific, Far East & Australia 177 (29 %) Germany 133 (54 %) Africa 4 (2 %) Americas 8 (3 %) Asia-Pacific, Far East & Australia 1 (0 %) Middle East & Central Asia 78 (31 %) EU excl. Germany 36 (5 %) Europe (other) 64 (9 %) Middle East & Central Asia 94 (13 %) Europe (other) 56 (9 %) EU excl. Germany 96 (16 %) Middle East & Central Asia 60 (10 %) EU excl. Germany 20 (8 %) Europe (other) 5 (2 %) Figures after deducting Other/Consolidation 17

18 4 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 Net financial 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. 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 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. Contract value Negative cash contribution months 19

20 4 Financials Income statement FY 2014 in EUR '000 FY 2013* FY 2014 FY in % Consolidated revenues (P&L) ,0% Sales revenues (P&L) ,9% Material costs ,9% Personnel costs ,6% Depreciation and amortization of fixed assets ,2% Write-downs of inventories due to use ,2% Other operation expenses ,5% EBIT n/a Financial income ,2% Financial expenses ,9% Result from associated entities n/a Profit before tax (EBT) n/a Income tax ,8% Net income n/a of which attributable to shareholders of BAUER AG n/a of which attributable to non-controlling interest n/a *Previous years figures adjusted 20

21 4 Financials Balance sheet December 31, 2014 in EUR '000 Dec 31, 2013* Dec 31, 2014 in % Assets ,7% Intangible assets ,7% Property, plant and equipment ,7% Long term financial assets n/a Other long term assets & deferred taxes ,6% Receivables from concession arrangements n/a Inventories ,7% Receivables and other assets ,1% Effective income tax refund claims ,6% Cash and cash equivalents ,9% Equity and liabilities ,7% Equity ,2% Pension provisions ,5% Non-current liabilities ,2% Current liabilities ,0% Other provisions (a) / tax ,6% (a) Other provisions also include short term portion of pension provisions *Previous years figures adjusted 21

22 4 Financials Cash flow statement FY 2014 in EUR '000 FY 2013* FY 2014 FY in % Cash flow from operating activities n/a Cash flow from investing activities ,3% 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 n/a Total change in liquid funds n/a Cash at beginning of reporting period ,5% Cash at end of reporting period ,9% *Previous years figures adjusted 22

23 5 Guidance 2015 Top-line growth with a slight increase in profitability BAUER Group 2014e* 2014 final 2015e Total Group Revenues ~ 1,550 EUR million 1,560 EUR million ~ 1,600 EUR million EBIT ~ 75 EUR million 76.4 EUR million ~ 75 EUR million Net profit * Guidance published November 14, 2014 at lower end of EUR million 15.7 EUR million ~ EUR million Bagatelle dam Mauritius In-house exhibition 2014 Schrobenhausen Water treatment plant Leuna, Germany 23

24 Appendix A The BAUER Group p. 25 B What is specialist foundation? p. 28 C Construction projects p. 30 D Equipment programme p. 34 E Resources projects p. 39 F Market environment Germany p. 43 G BAUER share p. 44 H Key Figures Time Line p

25 A 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 Sept 2006: Admittance in SDAX FY 2014: Total Group revenues EUR billion, 10,405 employees Company founded as copper forge Early 1970 s: Start of equipment manufacturing Early 1990 s: Build up of specialist construction/ environmental business 25

26 A 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 26

27 A BAUER Group Headquarters and plant Schrobenhausen, Germany 27

28 B What is specialist foundation? Building an excavation pit Supporting Wall Ground Water Underpinning Injection Injection Anchor Sealing Slab Pile Foundation 28

29 B What is specialist foundation used for? Applications for projects Buildings Infrastructure Water Energy Industry Foundations Excavation pits Cut-off walls Ground improvement 29

30 C Construction Mauritius Diaphragm wall for Bagatelle dam 30

31 C Construction Bhutan Diaphragm wall for hydroelectric power plant 31

32 C Construction Aswan, Egypt Offshore pile foundation for Nile bridge 32

33 C Construction Germany Foundation works for Schwarzkopf Tunnel bypass 33

34 D 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. 34

35 D 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. 35

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

37 D 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. 37

38 D Equipment Product range: Underwater Drilling 38

39 E Resources Segment The three competence areas Materials Exploration & Mining Services Environment Full-line provider for materials in the field of well construction geothermal energy distribution of gas/water/ geothermal energy Production drilling (for example: water wells) Exploration drilling Preparative work for the mining of resources Complete solutions in the field of geothermal energy Special solutions for mining resources Disposal of polluted areas Cleaning of process water and effluents Processing of drinking water Cleaning of extracted air High purity systems Brewing technology High purity water systems 39

40 E Resources Materials Amman, Jordan Drilling works and installation of production wells 40

41 E Resources Exploration and Mining Services Canada Diavik Mine Oil drilling rig of Site Goup Tulves, South Tyrol 41

42 E Resources Environment Oman Reed Bed Water Treatment Plant 42

43 F Market environment Germany German construction market Employees in Revenues in EUR billion Building construction Foundation engineering Orders received * in EUR billion Housebuilding Industrial building Public sector Absolute Figures 2014 West- Germany December 2014 East- 2014/ 2013/ Jan-Dec Germany West Germany Change in % 2014/ East Germany 2014/ 2013/ Jan-Dec / of which public buildings road building underground structures *) only companies > 20 employees Source: Federal Statistical Office, Statistical Office Bavaria 43

44 G BAUER share Facts & Figures Listed on Frankfurt stock exchange, Prime Standard, since July 4, 2006 Share capital EUR 73,001, Shares issued 17,131,000 Issue price EUR Share performance (01/ /2015) DAX SDAX BAUER AG Trading volume Listed in SDAX (MDAX from to ) 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) ~300 44

45 G 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 25, 2015 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. 45

46 H Key Figures Time Line FY 2011 FY 2014 Total Group Revenues (in EUR million) BAUER Group 1.527, , , ,8 340,0 361,6 361,7 372, ,8 330,7 390,7 382,6 400, ,2 378,1 371,1 413,9 397, ,2 Construction 700,9 570,0 615,4 606,6 156,9 163,4 163,7 171,2 655,2 153,5 192,7 183,0 212,5 741,7 176,5 174,9 181,8 179,8 713,0 Equipment 780,1 608,5 581,7 636,5 140,7 150,5 153,0 144,9 589,1 152,4 157,3 163,9 155,0 628,6 165,8 155,6 186,1 144,3 651,8 Resources 135,1 174,3 177,7 211,5 58,1 65,5 67,7 71,5 262,8 39,1 54,7 53,2 41,9 188,9 48,4 52,5 59,6 92,3 252,8 Sales Revenues (in EUR million) BAUER Group 1.290, , , ,6 286,2 319,2 328,5 410, ,4 262,6 344,7 361,2 433, ,2 313,4 332,2 368,1 362, ,7 Construction 584,3 487,9 505,8 506,2 138,8 144,4 148,3 147,6 579,1 124,4 167,8 182,4 182,9 657,5 165,9 162,7 163,5 142,0 634,1 Equipment 601,2 456,5 469,3 511,4 93,6 108,4 124,1 194,5 520,6 104,1 125,5 127,5 204,5 561,6 104,8 118,7 147,4 174,3 545,2 Resources 105,1 152,0 156,4 201,5 53,6 66,3 56,0 68,4 244,3 34,0 51,4 51,4 45,8 182,6 42,5 50,7 57,2 45,5 195,9 EBIT (in EUR million) BAUER Group 167,5 84,4 88,4 82,3 6,4 13,0 26,3 26,3 72,0 2,3 5,1 5,3 17,4 30,1 4,9 8,7 24,7 38,1 76,4 Construction 46,3 25,7 28,8 17,9 2,3 4,2 9,7 5,8 22,0 0,3 2,6 15,5 2,8 21,2 1,4 6,0 12,9 4,8 25,1 Equipment 118,3 51,3 48,3 53,0 5,0 6,8 8,6 13,6 34,0 3,8 2,0 7,5 18,9 32,2 5,6 7,6 12,7 11,0 36,9 Resources 4,0 6,0 8,1 10,9-0,6 1,6 7,7 6,5 15,2-2,4-0,1-17,6-3,9-24,0-2,1-1,2-2,4 21,6 15,9 EBIT margin (in %) BAUER Group 13,0% 7,7% 7,8% 6,7% 2,3% 4,1% 8,0% 6,4% 5,4% 0,9% 1,5% 1,5% 4,0% 2,1% 1,6% 2,6% 6,7% 10,5% 5,6% Construction 7,9% 5,3% 5,7% 3,5% 1,7% 2,9% 6,5% 3,9% 3,8% 0,2% 1,5% 8,5% 1,5% 3,2% 0,8% 3,7% 7,9% 3,4% 4,0% Equipment 19,7% 11,2% 10,3% 10,4% 5,3% 6,3% 6,9% 7,0% 6,5% 3,7% 1,6% 5,9% 9,2% 5,7% 5,3% 6,4% 8,6% 6,3% 6,8% Resources 3,8% 3,9% 5,2% 5,4% -1,1% 2,4% 13,8% 9,5% 6,2% -7,1% -0,2% -34,2% -8,5% -13,1% -4,9% -2,4% -4,2% 47,5% 8,1% * Figures 2013 adjusted Q1 12 Q1 12 Q1 12 Q1 12 Q2 12 Q3 12 Q2 12 Q2 12 Q2 12 Q3 12 Q4 12 Q3 12 Q4 12 Q3 12 Q4 12 Q Q1 13 Q1 13 Q1 13 Q2 13 Q2 13 Q Q1 13 Q2 13 Q3 13 Q3 13 Q Q1 14 Q2 14 Q3 14 Q3 13 Q Q1 14 Q2 14 Q3 14 Q4 14 Q3 13 Q Q1 14 Q2 14 Q3 14 Q4 14 Q Q1 14 Q2 14 Q3 14 Q4 14 Q

47 BAUER Aktiengesellschaft Financial calendar 2015 Publication Annual Report 2014 April 10, 2015 Annual Press Conference April 10, 2015 Analyst Conference April 10, 2015 Annual General Meeting June 25, 2015 Interim Report to March 31, 2015 May 13, 2015 Half-Year Interim Report to June 30, 2015 August 14, 2015 Interim Report to September 30, 2015 November 13, 2015 Investor Relations BAUER Aktiengesellschaft BAUER-Straße Schrobenhausen Germany ISIN Reuters Bloomberg DE B5AG.DE B5A GR Listing SDAX, CDAX, GEX, Classic All Share Prime All Share DAXplus Family Tel.: Fax: investor.relations@bauer.de Get the BAUER App for Apple and Android

48 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. 48