BAUER AG increases total Group revenues and starts the new financial year with an excellent order backlog

• Total Group revenues up 6.2 % to EUR 1,656.4 million.

• Net result for the period increased to EUR 29.0 million (previous year: EUR 15.7 million).

• Order backlog at the high level of EUR 995.6 million (previous year: EUR 762.7 million).

• Dividend proposal for 2015: EUR 0.15 per share

• Forecast for 2016: Total Group revenues of around

EUR 1.65 billion, earnings after tax of around EUR 20 to 25 million and EBIT around EUR 75 million.

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The BAUER Group exceeded its forecast for financial year 2015. Numerous positive and negative individual factors played their part in this. Thanks to shareholding transactions in the Equipment segment, positive exceptional earnings were generated. These were contrasted by restructuring expenditures as well as losses in discontinued business activities and from completed projects, which were disrupted during the construction process.

Total Group revenues increased by 6.2 % from EUR 1,560.2 million to EUR 1,656.4 million year-on-year. These accumulated factors increased EBIT to EUR 90.7 million (previous year: EUR 76.4 million) and the net result for the period to EUR 29.0 million (previous year: EUR 15.7 million). "The numerous individual factors, which had a particular effect on key results, naturally make it difficult to draw a meaningful comparison with previous years. The Group's pure operative business without special effects was nevertheless positive," comments Prof. Thomas Bauer, Chairman of the Management Board of BAUER AG.

As in the previous year, the Management Board and Supervisory Board will propose to the Annual General Meeting that a dividend amounting to EUR 0.15 per share should be paid for 2015. It will not be possible to increase the dividend as the equity base is to be protected and the equity ratio shall be increased from 27.2 % back to above 30 % in the medium term.

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

In 2015, the Construction segment generated a good part of its increased total Group revenues in the Middle East. The subsidiaries in Saudi Arabia, Qatar and Egypt recorded significant growth. They are participating in major subway construction sites in Doha, Riyadh and Cairo, and are also involved in projects relating to the expansion of the Suez Canal. The segment also maintained its high standard of the previous year in the German construction market. Losses were recorded in Russia, where construction has practically come to a standstill due to sanctions and the depreciation of the rouble. Overall, the segment generated total Group revenues of EUR 742.9 million in 2015. This figure is 2.4 % up on the previous year (EUR 725.6 million). EBIT fell back from EUR 26.0 million to EUR 13.9 million. The net result for the period was negative at EUR -7.3 million in the reporting year (previous year: EUR 2.5 million). This is chiefly due to problems with the Center Hill dam project in the USA. As in the previous year, the project, which was completed in 2015, created a great financial burden and the US subsidiary had to implement restructuring measures as a result. The order backlog increased further by 29.8 % compared with 2014 (EUR 455.5 million), reaching the record level of EUR 591.1 million. Several major projects were also acquired as well as small and medium-sized projects in all regions around the world.

Sales in the Equipment segment increased despite a difficult market environment and the operating result reached a healthy level. Total Group revenues rose by 17.8 % to EUR 753.1 million (previous year: EUR 639.2 million). This significant increase was primarily caused by exceptional earnings. These were generated on the one hand by the sale and revaluation of shares in SPANTEC Spann- und Ankertechnik GmbH. Another exceptional result arose from the joint venture agreement with Schlumberger, the world's leading supplier of technology, integrated project management and information solutions for oil and gas industry customers. Schlumberger invested 49 % each in two subsidiaries as part of a cash capital increase. The sales revenues grew by 2.9 % to EUR 548.0 million (previous year: EUR 532.7 million). As a result of the exceptional earnings, the segment's EBIT also increased significantly from EUR 36.0 million to EUR 99.4 million. The net result for the period rose correspondingly from EUR 8.8 million to EUR 65.4 million. When disregarding the special effects, sales revenues increased and EBIT reached a healthy level despite a difficult market environment. New developments have also established themselves well in the market. The deep drilling rigs business, which depends on crude oil prices, proved a bigger concern, which is also reflected in the order backlog. It dropped to EUR 128.1 million, 16.9 % below the previous year (EUR 154.2 million). The joint venture with Schlumberger will provide impetus in this respect.

The Resources segment was badly affected by the falling raw material prices in the past year. There were barely any deep drilling projects for oil, gas, water and natural resources. The reorganization of the segment, which was started in 2014, also had a negative effect on earnings yet again: for the future unprofitable businesses were discontinued, capacities reduced and subsidiaries closed down. Total Group revenues decreased by 12.3 % to EUR 221.6 million as a result (previous year: EUR 252.8 million). EBIT was clearly negative at EUR -19.8 million (previous year: EUR 15.9 million), as was the net result for the period at EUR -29.4 million (previous year: EUR 4.3 million). The order backlog of EUR 276.5 million was 80.7 % higher than in 2014 (EUR 153.0 million), which is a positive sign. This was primarily due to the largest single project in the history of the BAUER Group, the remediation of two segments of the old Kesslergrube landfill site in Grenzach-Wyhlen, Germany, with a value of over EUR 100 million. The order situation in the environmental and water sectors also provides a positive picture with regard to the further development of the segment.

A very positive order situation forms the basis of the BAUER Group's current financial year. The order backlog had risen by 30.5 % to EUR 995.6 million (previous year: EUR 762.7 million) by the end of 2015. Apart from the Construction segment, the Resources segment contributed the lion's share to this development with the largest project in the history of the Group. "The very high order backlog is an indication of our strength in the market. We can build on that in 2016," comments Prof. Bauer. "The instability in many regions around the world will be with us in the future, but our Company has taken a new path in many respects and has a product and service portfolio that is in great demand."

The Group is cautiously optimistic and expects total Group revenues of around EUR 1.65 billion in the current financial year. It expects earnings after tax of around EUR 20 to 25 million and EBIT of around EUR 75 million.