06-10-IR-Presentation as of 30 June 2006

BAUER Aktiengesellschaft

Analyst Presentation

Resultsas of 30 June 2006

06-10-IR-Presentation_as of 30 June 2006 2

BAUER group of companies, business model, exemplary projects3

Financial results4

5

BAUER strategic highlights H1 20062

BAUER share1

Outlook


BAUER share

Listed on Frankfurt stock exchange, Prime Standard since 4 July 200617,131,000 shares issued Issue price EUR 16.75Share performance +40 % since IPO (a)

Listed in SDAX since 18 September 2006 Bauer family biggest shareholder with 48.17 % of sharesFree float 51.83 %Market capitalisation EUR 402.7million (a)

1

(a) 24 October 2006

SDAX

BAUER AG

IPO


Continued successful trend of fiscal year 2005 in both business segments construction and equipment

Strong increase in profitabilityEBITDA up 34 % to EUR 42.2million (H1 2005 EUR 31.6million)EBIT up 89 % to EUR 18.5million (H1 2005 EUR 9.8million)Net profit EUR 5.9million (H1 2005 EUR 0.5million)

Healthy growth of total group revenuesTotal Group revenues up 25 % to EUR 453.9milion (H1 2005 EUR 363.5million)Main driver equipment with 45 % increase to EUR 212.1milion (H1 2005 EUR 146.1million)Construction (primarily other Europe, Middle East, Far East) + 13 % to EUR 256.4milion (H1 2005 EUR 227.7million)

Significant increase in order bookOrder book up 24 % to EUR 426.8million (H1 2005 EUR 345.7million)

BAUER strategic highlights H1 20062


~ 60 % of revenues (a)

Specialist for foundation engineering and constructionFocus on complex projectsRelated construction and environmental services in GermanyMajority of projects outside of Germany

~ 40 % of revenues (a)

Premium player for specialist foundation equipment Focus on technologically advanced and complex products85% of revenues from sales abroad Multi-branding strategy

(a) Fiscal year 2005

BAUER group of companies3

Construction Equipment


End of 1970’s:

Start of inter-nationalisation

Early 1990’s:

Build up of specialist construction/

environmental business

Early 1980’s:

Selling of equipment to third parties

After WW II:

Start of construction

business

Early 1970’s:

Start of equipment

manufacturing

Company founded as

copper forge

1950's 1970's 2000+1790 1980's1960's 1990's

2005:

€ 824 m total grouprevenues,

5,155 employees

2006

Public listed

companySDAX

History of BauerTwo centuries of experience

3


ConstructionEquipment

Successful completion of globalisation Comprehensive international network

Significant cost degressionLeading market positions

Leading position in highly specialised marketsWorldwide network in both main business segments

3


Sealing slab

Injection anchor

Underpinning injection

Pile foundation

Supporting wall

Ground water

What is specialist foundation?Bauer in action

3


Exemplary projectsAngerhof, Munich & Péribonka, Canada

Trench Cutter excavating sealing wall

Excavation pit for innercity office building

3


Exemplary projectsDubai palm islands

3


Exemplary projectsMerow dam, Sudan

3


Bauer Annual Exhibition3


Equipment

Foundation Construction (international)

Foundation Construction (Germany)

Specialist construction

0

100

200

300

400

500

600

700

800

900

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Tota

l Gro

up re

venu

es (E

UR

mill

ion)

Foundation Construction (Germany) Foundation Construction (international)

Specialist construction Equipment

CAGR(b)

1990 – 2005

(a) Post consolidation(b) Compound annual growth rate

38%

35%

13%

14%

~12%

~17%

~7%

~1%

Total Group revenues 2005(a)

Note: 1980 – 2002 based on HBG figures, 2003 – 2005 based on IFRS figures

Longstanding healthy business developmentSteady growth and successful product diversification

4


in TEUR FY 2005 H1 2005 H1 2006 change in %Total group revenues 824,330 363,507 453,867 24.9%business segment construction 521,250 227,712 256,362 12.6%business segment equipment 335,680 146,068 212,087 45.2%Consolidated revenues (P&L) 773,504 351,994 430,221 22.2%EBITDA 94,832 31,560 42,217 33.8%Margin (c) 12.3% 9.0% 9.8% n/aEBIT 47,479 9,769 18,457 88.9%business segment construction(b) 3.28% 0.24% -0.37% n/abusiness segment equipment(b) 9.2% 6.4% 9.3% n/aMargin (c) 6.1% 2.8% 4.3% n/aNet income(a) 19,505 499 5,914 n/aMargin (c) 2.5% 0.1% 1.4% n/aearnings per share (in EUR) (d) 1.32 0.0 0.38 n/a

n/a not applicable(a) pre-minorities

Financial results - overview4

(b) of Total group revenues pre-consolidation(c) of Consolidated revenues (P&L)(d) earnings per share FY 2005 adjusted (share split 1:6)


4

40%

16%

17%

11%

13%3%

Financial results - regional development

Construction H1 2006 - EUR 256.4 million Equipment H1 2006 - EUR 212.1million

Germany

Rest of Europe

Middle East

Far East

AmericasOthers

10%

40%

18%

8%

20%

4%Germany

Rest of Europe

Middle East

Far East

Americas

Others

in TEUR FY 2005 in % H1 2005 H1 2006Germany 270,350 33% 124,230 121,580Rest of Europe 218,150 26% 90,402 119,370Middle East 109,820 13% 63,829 79,574Far East 85,580 10% 33,749 44,072Americas 105,170 13% 34,922 73,219Others 35,260 4% 16,375 16,052Total group revenues 824,330 100% 363,507 453,867


n/a not applicable(a) pre-consolidation(b) of Total group revenues pre-consolidation

in TEUR H1 2005 H1 2006 change in %Construction revenues 227,712 256,362 12.6%

in % of Total group revenues (a) 59.6% 53.8% n/a

EBIT margin(b) 0.24% -0.37% n/a

Equipment revenues 146,068 212,087 45.2%


EBIT margin(b) 6.4% 9.3% n/a

Other revenues 8,305 8,295 -0.1%


Eliminations/ consolidations -18,578 -22,877 n/a

Total group revenues 363,507 453,867 24.9%

Financial results - by business segment4

06-10-IR-Presentation_as of 30 June 2006 17n/a not applicable

in TEUR H1 2005 H1 2006 change in %EBIT 9,769 18,457 88.9%

Financial result -10,248 -8,548 -16.6%

% of Consolidated revenues (P&L) -2.9% -2.0% n/a

Result from associated entities 638 638 0.0%

Profit before tax 159 10,547 n/a

% of Consolidated revenues (P&L) 0.0% 2.5% n/a

Income tax -340 4,633 n/a% of profit before tax -213.8% 43.9% n/a

Net income 499 5,914 n/a


Minority interest 438 455 n/a

Net income attributable to shareholders of Bauer AG 61 5,459 n/a

Financial results - P&L positions4


in TEUR H1 2005 H1 2006 change in %

Consolidated revenues (P&L) 351,994 430,221 22.2%

Material costs 205,883 243,491 18.3%


Personnel costs 80,094 84,982 6.1%


Depreciation 21,791 23,760 9.0%


Other operation expenses 34,457 59,531 72.8%


EBIT 9,769 18,457 88.9%

n/a not applicable

Financial results - P&L cost items4


in TEUR FY 2005 in % H1 2006 in %Assets 568,810 100.0% 679,456 100.0%Intangible assets 10,526 1.9% 10,716 1.6%Property, plant and equipment 169,336 29.8% 169,853 25.0%Long term financial assets 4,471 0.8% 6,436 0.9%Other long term assets 25,212 4.4% 27,729 4.1%Inventories 132,069 23.2% 163,689 24.1%Trade receivables 206,772 36.4% 276,321 40.7%Other short term assets 5,903 1.0% 7,239 1.1%Cash and cash equivalents 14,521 2.6% 17,473 2.6%

Equity and liabilities 568,810 100.0% 679,456 100.0%Equity 148,461 26.1% 149,078 21.9%Liabilities int. bearing 224,810 39.5% 313,307 46.1%Liabilities non-int. bearing 145,619 25.6% 165,736 24.4%Pension provisions 33,314 5.9% 34,252 5.0%Other provisions 16,606 2.9% 17,083 2.5%

Financial results - Balance sheet positions4


in TEUR H1 2005 H1 2006

Operating cash flow -36,181 -55,833

Investing cash flow -13,453 -17,946

Financing cash flow 52,403 76,731

Net cash increase 2,769 2,952

Cash at start of reporting period 10,614 14,521

Cash at end of reporting period 13,383 17,473

Financial results - Cash flow positions4


Signs of recovery in German construction market continue to strengthenOrder book increase sustainable Most of pre-financing requirements will net out towards year endDemand for BAUER equipment very strong- challenge to serve all potential customers in timeInnovations (eg. QuattroCutter, geothermal drilling equipment) are well received in the marketIncrease in equipment capacity allows for further business expansion

new production plant for steel parts near Moscownew production halls in Schrobenhausen, Aresing, Peine (Prakla), Immenstadt (MAT)new administrative office for headquarter in Schrobenhausen

Organizational reorganisation continuously improves operational strength

Outlook5


Fast pace of innovation

New QuattroCutter

Optimisation of operations M&A in related areas

International production and global sourcing

Transferring core competencies to new markets

Mining Geothermal applications Offshore wind parks, services for oil/gas drilling

OutlookAreas of strategic development

5


Construction industry Specialist foundationGlobal GDP outlook

Sound economic environment

High GDP growth, especially in emerging markets

High infrastructure investments

Key industry to growth in emerging markets

Stable demand from established economies

Key driver of process cost reductionsNew applications through innovation

Equipment

Higher density in metropolitan areasIncreased complexity of projects

Construction

'The world is our market' Attractive industry High structural growth

OutlookAttractive growth of worldwide construction market

5


United Arab Emirates (1967) United Arab Emirates (today)

OutlookConcentration of metropolitan areas

5

BAUER Aktiengesellschaft

ISIN DE5168108Reuters B5AG.DEBloomberg B5A GR

Listing

IndicesC-DAXClassic All SharePrime All Share

Investor RelationsBAUER AktiengesellschaftWittelsbacherstraße 5D - 86529 SchrobenhausenTel.: +49 8252/ 97- 1918Fax: +49 8252/ 97- 2900 Email: [email protected]

06-10-IR-Presentation as of 30 June 2006

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Transcript of 06-10-IR-Presentation as of 30 June 2006