BAUER AG. Group Presentation 9M/Q Successful completion: cut-off wall for a diamond mine, Diavik/Canada. BAUER AG, D Schrobenhausen

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1 BAUER AG Group Presentation 9M/Q Successful completion: cut-off wall for a diamond mine, Diavik/Canada IR-Presentation_Q3_2017 BAUER AG, D Schrobenhausen

2 Key Figures 9M M M M in % Total Group revenues, of which - Germany - International - Construction - Equipment - Resources 1, , , % -0.4% +33.3% +29.1% +24.3% -5.8% - Other/Consolidation n/a Sales revenues , % Order intake 1, , % Order backlog 1, % EBITDA % EBIT % EBIT margin in % (of sales revenues) n/a Earnings after tax n/a Earnings per share in EUR n/a Equity ratio in % n/a Number of employees (average over the year) 10,662 10, % 2

3 Highlights 9M 2017 BAUER Group The BAUER Group recorded an increase in revenues after the third quarter 2017 compared to the previous year, which is mainly due to Construction and Equipment. Total Group revenues increased by 22.0% to EUR 1,398.1 million (2016: EUR 1,146.3 million) and sales revenues by 27.5% to EUR 1,265.6 million (2016: EUR million). EBIT increased by 28.7% from EUR 38.0 million in the previous year to EUR 48.9 million. The Group's earnings after tax were EUR 6.9 million (2016: EUR -4.0 million). With a view to the development of earnings, the Equipment segment has significantly improved, whereas the Construction and Resources segments are behind expectations. Order backlog of the Group decreased by 4.1% to EUR million (2016: EUR 1,019.0 million). Order intake increased significantly by 16.9% from EUR 1,169.6 million to EUR 1,367.3 million. A high double-digit million order backlog was taken off the books after the sale of shares in a real estate company at the end of Without this effect, the orders in hand were higher than the previous year. Forecast 2017 unchanged: total Group revenues of around EUR 1.8 billion, EBIT of about EUR 75 million and earnings after tax of about EUR 23 to 28 million. BAUER BG 45 drilling rig In-house exhibition 3

4 Table of Content BAUER Group Strategy, Chances & Markets Financials 9M/Q & 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 1.6 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 5

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

7 BAUER Group Longstanding healthy business development Total Group revenues CAGR 4.9% Sales revenues CAGR 5.3% IR-Presentation_Q3_2017 BAUER AG, D Schrobenhausen 7

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

9 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. 9

10 World construction markets Bauer market potential USA / Canada: big need for infrastructure investments; reluctance in USA + o Other Americas: several chances in South and Central America Western Europe: recovery in most markets Germany: + very good; infrastructure budget raised o Africa: o little construction activities; some special projects; demand for water and resources is slightly better Eastern Europe: slow positive development o Middle East: slowing down as a result of oil price; most markets remain stable; Qatar uncertain o Russia: still remains weak Central Asia: good market potentials; small upswing in India + - Far East: + positive development most markets, especially Malaysia and Indonesia; Last update: November weak - slightly weak o stable + growing ++ strong growth 10

11 Global economic situation IMF projection of the real annual GDP growth in % Europe Germany CIS* Russia United States 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 2017 * CIS = Commonwealth of Independent States (incl. Georgia; excl. Russia) IR-Presentation_Q3_2017 BAUER AG, D Schrobenhausen 11

12 Regional breakdown Total Group revenues 9M 2017 Group Total 1,398 Germany 383 (27 %) Africa 48 (4 %) Americas 168 (12 %) Full year 2016 Total 1,586 Germany 481 (30 %) Africa 75 (5 %) Americas 236 (15 %) Europe (other) 82 (6 %) EU excl. Germany 199 (14 %) Asia-Pacific, Far East & Australia 354 (25 %) Middle East & Central Asia 164 (12 %) Europe (other) 95 (6 %) EU excl. Germany 218 (14 %) Asia-Pacific, Far East & Australia 284 (18 %) Middle East & Central Asia 197 (12 %) 12

13 Regional breakdown Total Group revenues 9M 2017 Segments Construction segment Equipment segment Resources segment Total 654 Total 551 Total 193 Germany 144 (22 %) Africa 29 (4 %) Americas 71 (11 %) Asia-Pacific, Far East & Australia 183 (28 %) Germany 106 (19 %) Africa 13 (3 %) Americas 89 (16 %) Germany 133 (69 %) Africa 6 (3 %) Americas 8 (4 %) Asia-Pacific, Far East & Australia 0 (0 %) Middle East & Central Asia 32 (16 %) Europe (other) 3 (2 %) Europe (other) 46 (7 %) Europe (other) 33 (6 %) Asia-Pacific, Far East & Australia 171 (31 %) EU excl. Germany 72 (11 %) Middle East & Central Asia 109 (17 %) Figures after deducting Other/Consolidation EU excl. Germany 116 (21 %) Middle East & Central Asia 23 (4 %) EU excl. Germany 11 (6 %) 13

14 Table of Content BAUER Group Strategy, Chances & Markets Financials 9M/Q & Guidance Appendix 14

15 Financials Revenues, earnings & orders Group Revenues Order backlog Total Group revenues Sales revenues M +22.0% +27.5% % M M 2017 Earnings M M 2017 Order intake EBIT Earnings after tax ,7 9M 76, , % 48, ,0 29, ,7 14,4 6,9-4, M M IR-Presentation_Q3_2017 Q4 Q3 Q2 Q1 1,811 1, , % BAUER AG, D Schrobenhausen 15

16 Financials Construction segment Highlights 9M IR-Presentation_Q3_2017 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 amounting to EUR million were 29.1% up on the previous year. The handling of extensive projects over the course of the year and capacity utilization distributed evenly across the globe were the main reasons. EBIT decreased from EUR 12.6 million to EUR 7.3 million. As reported after second quarter, the figure was negatively impacted in the third quarter as well by individual unsatisfactory projects in Germany and Australia as well as by effects related to exchange rate fluctuations. Order backlog decreased by 10.6% to EUR million. The segment has a strong order book of 8.6 months. The order backlog in specialist foundation engineering increased, as a high double-digit million order backlog was taken off the books after the sale of shares in a real estate company at the end of Order intake increased significantly by 18.8% to EUR million (previous year: EUR million). Total Group revenues 9M Q % Order backlog % 516 EBIT 7,3 12,6 BAUER AG, D Schrobenhausen -41.7% 4, ,3 16

17 Financials Construction segment Revenues and order development Construction Total Group revenues % 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 Q1/17 Q2/17 Q3/17 Order backlog % 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 Q1/17 Q2/17 Q3/ IR-Presentation_Q3_2017 BAUER AG, D Schrobenhausen 17

18 Financials Equipment segment Highlights 9M 2017 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: IR-Presentation_Q3_2017 Equipment ~ 40 % of total Group revenues EBIT margin: 10-12% Total Group revenues increased significantly by 24.3% from EUR million to EUR million and sales revenues by 39.0% from EUR million to EUR million. EBIT increased strongly from EUR 22.8 million to EUR 46.7 million year-on-year. The earnings figures are therefore significantly higher than our expectations. In addition to a considerable year-on-year rise in sales and successful deliveries of large machinery and specialist equipment, the improved ratio between fixed costs and sales also contributed to this increase. Order backlog increased from EUR million to EUR million as order intake improved strongly by 20.5% from EUR million to EUR million. The trend toward increased and more stable order intake continued. The segment has an order book of 2.8 months. Sales revenues 9M Q % Order intake +20.5% EBIT 9,4 22, % BAUER AG, D Schrobenhausen 24,5 46,7 18

19 Financials Equipment segment Revenues and order development Equipment Sales revenues % 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 Q1/17 Q2/17 Q3/17 Order intake % 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 Q1/17 Q2/17 Q3/ IR-Presentation_Q3_2017 BAUER AG, D Schrobenhausen 19

20 Financials Equipment segment Market development vs. Bauer Equipment Revenues of 50 largest construction equipment manufacturers in USD billion Revenues of the world s 50 largest construction equipment manufacturer saw a tremendous decline Source: internationalconstruction (04/2017) Sales revenues of the Bauer Equipment segment % +4% between 2012 and 2016 of 31%. 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 IR-Presentation_Q3_2017 BAUER AG, D Schrobenhausen 20

21 Financials Resources segment Highlights 9M 2017 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: IR-Presentation_Q3_2017 Resources ~ 20% of total Group revenues EBIT margin: 6-8% Total Group revenues amounted to EUR million, 5.8% down year-on-year (EUR million). EBIT amounted to EUR -5.3 million (previous year: EUR 3.4 million). The raw materials markets are recovering only slowly particularly in Africa. This combined with the continuously low oil price is affecting revenues and earnings within the scope of our expectations. A project of our brewery business and other required reorganization expenses have again negatively impacted earnings with respect to the first half of The segment has a solid order backlog with a volume of EUR million, 6.0% up on the previous year. Order intake grew slightly by 1.4 % from EUR million to EUR million. The segment has a sustainable order book of 13.9 months. Total Group revenues 9M Q Order backlog -5.8% % 290-5,6-5, EBIT 3,5 3,4 BAUER AG, D Schrobenhausen 21

22 Financials Resources segment Revenues and order development Resources Total Group revenues -1.7% 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 Q1/17 Q2/17 Q3/17 Order backlog +6.0% 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 Q1/17 Q2/17 Q3/ IR-Presentation_Q3_2017 BAUER AG, D Schrobenhausen 22

23 Financials Working capital & net debt typical cycle during the year Group Working capital -8.1% 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 Q1/17 Q2/17 Q3/17 Net debt (excl. pensions) -6.8% 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 Q1/17 Q2/17 Q3/ IR-Presentation_Q3_2017 BAUER AG, D Schrobenhausen 23

24 Financials Working capital & net debt requirements and development Total Group revenues / net debt Group Working capital / net debt Working capital Total Group revenues Net debt Net debt 2011/ % +5.0% 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 Comparison with main contractor: they can finance their company by a positive cash flow from jobs. 24

25 Contract value Contract value Financials Working capital needs & cash flow EUR EUR Group 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 Working capital & net debt Financing of future revenues Group Net debt non-current & current debt mainly liabilities to banks is needed to finance Working capital mainly consists of inventory and receivables Inventory Distribution on business segments Construction: raw materials for construction sites (concrete, steel, etc.) Equipment: 1) Finished machines with a long-term value needed to deliver equipment to customers in time 2) Spare parts and drilling tools in a number of service centers all over the world for high customer service 3) Rental fleet Quite some machines for rental and rental-purchase contracts are strategically important Resources: finished goods (water business) and raw materials for construction sites (environmental business) Receivables Distribution on business segments Construction: 1) Receivables on construction projects (PoC) including litigations 2) No large valuation adjustments on receivables in the last years (less than 4% of receivables in average p.a.) Equipment: receivables on outstanding customer payments Resources: outstanding customer payments (water business) and receivables on projects (environmental & drilling business) Working capital has a solid and long-term value Construction Equipment Resources 15-20% 75-80% ~5% Construction Equipment Resources 55-60% 20-25% 15-20% Net debt therefore is needed to finance the future revenues of the company IR-Presentation_Q3_2017 BAUER AG, D Schrobenhausen 26

27 Financials Income statement 9M 2017 in EUR '000 9M M 2017 in % Sales revenues (P&L) 992,552 1,265, % Consolidated revenues (P&L) 1,084,705 1,328, % Cost of materials -531, , % Personel expenses -275, , % Other operation expenses -173, , % EBITDA 104, , % Depreciation of fixed assets -55,037-58, % Write-downs of inventories due to use -11,576-10, % EBIT 38,016 48, % Financial income 3,604 5, % Financial expenses -31,590-29, % Share of profit/loss of associated companies (equity method) -1,034 1,799 n/a Earnings before tax (EBT) 8,996 27,441 n/a Income tax expense -12,983-20, % Earnings after tax -3,987 6,861 n/a of which attributable to shareholders of BAUER AG -6,827 5,373 n/a of which attributable to non-controlling interests 2,840 1, % 27

28 Financials Balance sheet September 30, 2017 in EUR '000 Sep 30, 2016 Sep 30, 2017 in % Assets 1,706,651 1,783, % A. Non-current assets 613, , % I. Intangible assets 24,653 21, % II. Property, plant and equipment and investment property 391, , % III. Investments accounted for using the equity method 128, , % IV. Participations 3,457 9,746 n/a V. Other non-current assets & deferred tax assets 66,028 66, % B. Current assets 1,093,151 1,156, % I. Inventories 500, , % II. Receivables and other assets 534, , % III. Effective income tax refund claims 3,127 6,884 n/a IV. Cash and cash equivalents 38,636 56, % V. Assets classified as held for sale 16,172 0 n/a Equity and liabilities 1,706,651 1,783, % A. Equity 412, , % B. Non-current debt 595, , % I. Provisions for pensions 140, , % II. Non-current liabilities & deferred tax liabilities 455, , % C. Current debt 698, , % I. Financial liabilities 352, , % II. Other current liabilities 315, , % III. Effective income tax obligations 12,515 10, % IV. Provisions 17,920 18, % 28

29 Financials Cash flow statement 9M 2017 in EUR '000 9M M 2017 in % Cash flow from operational activity 9,468 45,812 n/a Cash flow from investment activity -34,044-38, % Cash flow from financing activity 18,497 16, % Free Cash Flow -24,576 7,696 n/a Changes in liquid funds affecting payments -6,079 24,328 n/a Influence of exchange rate movements on cash -2,691-1, % Total change in liquid funds -8,770 22,666 n/a Cash and cash equivalents at beginning of reporting period 47,406 33, % Cash and cash equivalents at end of reporting period 38,636 56, % 29

30 Financials Forecast 2017 Earnings target reduced 2016 final 2017 forecast Long-term goal Total Group Revenues 1,586 EUR million ~ 1,800 EUR million Revenue growth -4.2 % 3-8 % EBIT 68.3 EUR million old: ~ 75.0 EUR million new: ~ 65.0 EUR million EBIT margin 4.9 % 7-9 % Earnings after tax 14.4 EUR million old: ~ EUR million new: just in the positive range Equity ratio 25.5 % > 30 % Tunnel under Suez Canal Egypt In-house exhibition Schrobenhausen Soil replacement Hersbruck, Germany 30

31 Investor Relations Financial calendar & contact Annual Report 2017 April 12, 2018 Annual Press Conference April 12, 2018 Analyst Conference April 12, 2018 Annual General Meeting June 28, 2018 Quarterly Statement Q May 14, 2018 Half-Year Interim Report to June 30, 2018 August 10, 2018 Quarterly Statement 9M/Q November 13, 2018 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 31

32 Table of Content BAUER Group Strategy, Chances & Markets Financials 9M/Q & Guidance Appendix 32

33 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 33

34 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 34

35 What is specialist foundation? Building an excavation pit Supporting Wall Ground Water Underpinning Injection Injection Anchor Sealing Slab Pile Foundation 35

36 What is specialist foundation used for? Applications for projects Buildings Infrastructure Water Energy Industry Foundations Excavation pits Cut-off walls Ground improvement 36

37 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 37

38 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. 38

39 Construction Diavik, Canada Diaphragm wall for Diavik Diamond Mines 39

40 Construction Jakarta, Indonesia Foundation works for Mori Tower 40

41 Construction Dogern, Germany Dike remediation with Mixed-in-Place euroluftbild.de 41

42 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. 42

43 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. 43

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

45 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. 45

46 Resources 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 46

47 Resources Water Process Water & Water Distribution Management 47

48 Resources Environment Remediation of Kesslergrube landfill, Germany Source: Press picture Roche 48

49 Market environment Germany German construction market August 2017 Employees in 1000 Germany / 2016/ Jan-Aug / 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 49

50 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 () ~490 50

51 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 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. 51

52 Key Figures Time Line FY 2008 Q Total Group revenues Q1 14 Q2 14 Q3 14 Q Q1 15 Q2 15 Q3 15 Q Q1 16 Q2 16 Q3 16 Q Q1 17 Q2 17 Q3 17 () BAUER Group 1, , , , , , , , , Construction Equipment Resources Sales revenues () Q1 14 Q2 14 Q3 14 Q Q1 15 Q2 15 Q3 15 Q Q1 16 Q2 16 Q3 16 Q Q1 17 Q2 17 Q3 17 BAUER Group 1, , , , , , , , , Construction Equipment Resources EBIT () Q1 14 Q2 14 Q3 14 Q Q1 15 Q2 15 Q3 15 Q Q1 16 Q2 16 Q3 16 Q Q1 17 Q2 17 Q3 17 BAUER Group Construction Equipment Resources EBIT margin (in %) Q1 14 Q2 14 Q3 14 Q Q1 15 Q2 15 Q3 15 Q Q1 16 Q2 16 Q3 16 Q Q1 17 Q2 17 Q3 17 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% 2.2% 3.8% 5.4% 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% -0.1% 1.5% 2.1% 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% 7.4% 7.0% 14.5% 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% -0.5% 0.8% -10.5% In all three segments, total Group revenues and EBIT figures of Q and FY 2015 were influenced by exceptional earnings. 52

53 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. 53