DGAP-News: BAUER Aktiengesellschaft: BAUER AG records an operationally positive first half-year

- Total Group revenues of EUR 831.6 million are 5.0% higher than the previous year; sales revenues have risen by 4.0% to EUR 745.4 million.
- EBIT has reached EUR 35.3 million (previous year: EUR 34.1 million).
- Earnings after tax were EUR -0.4 million (previous year: EUR 1.6 million) and were affected by the valuation of interest rate hedging transactions.
- The order backlog is at a high level of EUR 1,019.6 million (previous year: EUR 1,000.3 million).
- The full-year forecast has been confirmed.

Schrobenhausen - The first half of the year went according to plan for the BAUER Group from an operational perspective. Total Group revenues amounted to EUR 831.6 million and have therefore risen by 5.0% compared to the previous year (EUR 792.3 million). Sales revenues have grown by 4.0% to EUR 745.4 million. EBIT totaled EUR 35.3 million in contrast to the previous year's value of EUR 34.1 million. While operating business saw positive development, the valuation of interest rate hedging transactions has had a negative impact on earnings after tax of around EUR 10 million, so that the figure has come in at EUR -0.4 million at the end of the first half of the year (previous year: EUR 1.6 million).

The Group's order backlog remains at a high level. This has increased by 1.9% compared to the same period last year, and has risen by 0.6% to EUR 1,019.6 million compared to year-end 2018. Order intake has increased by 2.8%, from EUR 814.8 million to EUR 837.6 million. "Despite weaker economic growth, the effects of which have been felt for the first time in 2019 after many good years, as well as ongoing political crises in various regions of the world, we are seeing numerous project opportunities on a global scale," says Chairman of the Management Board of BAUER AG, Michael Stomberg.

Business segments

With its three segments - Construction, Equipment and Resources - and its broadly diversified business model, the Group operates in more than 110 subsidiaries in some 70 countries around the world.

The Construction segment is slightly below expectations at the end of the first half of the year, which is attributable to underutilization in certain countries, among other things. However, the good order situation is a promising sign for further business development. In the first half-year, total Group revenues amounting to EUR 342.4 million are 4.7% up on the previous year's value (EUR 327.1 million). EBIT has decreased slightly from EUR 4.8 million to EUR 4.2 million year over year. At EUR
-10.5 million, earnings after tax were significantly lower than the previous year (EUR -4.1 million) as these were also negatively affected by the interest rate hedging transactions. The order backlog has shown a significant increase of 8.6% to EUR 550.7 million (previous year: EUR 507.2 million) and is therefore at a high level. Order intake of EUR 345.8 million was 1.2% higher than the previous year's level (EUR 341.6 million).

Business developed positively in the Equipment segment in the first half-year. Total Group revenues have risen by 1.7% to EUR 380.8 million from what was already a good previous year (EUR 374.5 million). Sales revenues have grown slightly by 0.9% from EUR 302.2 million to EUR 305.0 million. EBIT has decreased from EUR 36.3 million to EUR 31.2 million year over year. Earnings after tax have fallen from EUR 16.1 million to EUR 14.3 million as these were also affected by interest rate hedging transactions. In addition, a non-operating charge in the amount of EUR 4.5 million is included in the earnings figures, which is attributable to an earnings-affecting restructuring of a subsidiary, which was transferred from the Resources segment to the Equipment segment. The order backlog has decreased by 14.4% to EUR 146.8 million, as has order intake by 4.8% to EUR 377.7 million, although the first half of 2018 had reached a relatively high level in comparison. The demand situation continues to be stable worldwide though; positive further development can therefore be expected.

The Resources segment is continuing its upward trend brought about by reorganization efforts. Total Group revenues have risen by 16.3% to EUR 138.7 million (previous year: EUR 119.2 million). This growth has primarily resulted from environmental and well construction material business. EBIT has improved significantly from EUR -6.7 million to EUR 0.5 million; earnings after tax are up from EUR -9.3 million to EUR 1.1 million. These figures contain the described non-operating earnings contribution of EUR 4.5 million arising from the restructuring of a subsidiary. At EUR 322.0 million, the order backlog is at the previous year's level (EUR 321.5 million) after the first six months. Order intake has increased by 37.5% to EUR 144.2 million. The segment has been undergoing reorganization for some years and this is not yet completed. The figures reveal the first signs of success of this work.

Outlook

BAUER AG is sticking to its full-year forecast provided at the annual press conference in April. This forecasts total Group revenues of about EUR 1.7 billion and EBIT of around EUR 95 million. Earnings after tax are expected to be significantly higher than in the previous year. "We maintain our forecast for the 2019 financial year," says Chairman of the Management Board Michael Stomberg. "The valuation of interest rate hedging transactions is obviously impacting earnings after tax. However, we are still aiming to significantly improve this figure."

You can read the full Half-Year Interim Report online at www.bauer.de.
About Bauer

The BAUER Group is a leading provider of services, equipment and products related to ground and groundwater. With over 110 subsidiaries, Bauer operates a worldwide network on all continents.

The operations of the Group are divided into three future-oriented segments with a high potential for synergy: Construction, Equipment and Resources. The Construction segment offers new and innovative specialist foundation engineering services alongside the established ones, and carries out foundation and excavation work, cut-off walls and ground improvements worldwide. Bauer is a world market leader in the Equipment segment and provides a full range of equipment for specialist foundation engineering as well as for the exploration, mining and extraction of natural resources. In the Resources segment, Bauer focuses on highly innovative products and services in the areas of water, environment and natural resources.

Bauer profits greatly from the collaboration between its three separate business divisions, enabling the Group to position itself as an innovative and highly specialized provider of products and services for demanding projects in specialist foundation engineering and related markets. Bauer therefore offers appropriate solutions for the world's major challenges, such as urbanization, growing infrastructure needs, the environment, and water, oil and gas.

The BAUER Group was founded in 1790 and is based in Schrobenhausen, Bavaria. In 2018 it employed some 12,000 people in around 70 countries and achieved total Group revenues of EUR 1.7 billion. BAUER Aktiengesellschaft is listed in the Prime Standard segment of the German stock market.

More information can be found at http://www.bauer.de.

GROUP KEY FIGURES January - June 2019 (IFRS)

	2018	2019	Change
	in EUR million	in EUR million
Total Group revenues	792.3	831.6	+5.0%
of which
- Construction	327.1	342.4	+4.7%
- Equipment	374.5	380.8	+1.7%
- Resources	119.2	138.7	+16.3%
- Other/Consolidation	-28.5	-30.3	n/a
Sales revenues	717.1	745.4	+4.0%
Order intake	814.8	837.6	+2.8%
Order backlog	1,000.3	1,019.6	+1.9%
EBITDA	79.4	82.5	+3.9%
EBIT	34.1	35.3	+3.4%
Earnings after tax	1.6	-0.4	n/a
Total assets	1,706.3	1,733.3	+1.6%
Equity	416.4	420.8	+1.1%
Employees (average number during the year)	11,210	11,620	+3.7%

Contact:
Christopher Wolf
Investor Relations
BAUER Aktiengesellschaft
BAUER-Strasse 1
86529 Schrobenhausen, Germany
Phone: +49 8252 97-1797
Fax: +49 8252 97-2900
investor.relations@bauer.de
www.bauer.de