BAUER Aktiengesellschaft

Analyst Presentation

Results as of 30 June 2006 1 BAUER share

2 BAUER strategic highlights H1 2006

3 BAUER group of companies, business model, exemplary projects

4 Financial results

5 Outlook

06-10-IR-Presentation_as of 30 June 2006 2 1 BAUER share

ƒ Listed on Frankfurt stock exchange, Prime Standard since 4 July 2006 ƒ 17,131,000 shares issued ƒ Issue price EUR 16.75 ƒ Share performance +40 % since IPO (a) ƒ Listed in SDAX since 18 September 2006 ƒ Bauer family biggest shareholder with 48.17 % of shares

ƒ Free float 51.83 % BAUER AG ƒ Market capitalisation EUR 402.7million (a) SDAX

(a) 24 October 2006 IPO 06-10-IR-Presentation_as of 30 June 2006 3 2 BAUER strategic highlights H1 2006

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

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

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

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

06-10-IR-Presentation_as of 30 June 2006 4 3 BAUER group of companies

Construction Equipment

ƒ ~ 60 % of revenues (a) ƒ ~ 40 % of revenues (a) ƒ Specialist for foundation engineering and ƒ Premium player for specialist foundation construction equipment ƒ Focus on complex projects ƒ Focus on technologically advanced and complex ƒ Related construction and environmental products services in Germany ƒ 85% of revenues from sales abroad ƒ Majority of projects outside of Germany ƒ Multi-branding strategy

(a) Fiscal year 2005 06-10-IR-Presentation_as of 30 June 2006 5 3 History of Bauer Two centuries of experience

After WW II: Early 1990’s: End of 1970’s: Public Start of Build up of specialist listed Start of inter- construction construction/ company nationalisation business environmental business SDAX

17901950's1960's 1970's 1980's 1990's 2000+ 2006

Early 1970’s: Early 1980’s: 2005: Company founded as Start of Selling of € 824 m copper forge equipment equipment to total group manufacturing third parties revenues, 5,155 employees

06-10-IR-Presentation_as of 30 June 2006 6 3 Leading position in highly specialised markets Worldwide network in both main business segments

Equipment Construction

Successful completion of globalisation Comprehensive international network

Leading market positions Significant cost degression

06-10-IR-Presentation_as of 30 June 2006 7 3 What is specialist foundation? Bauer in action

Supporting wall

Ground water

Injection anchor

Underpinning injection Sealing slab

Pile foundation

06-10-IR-Presentation_as of 30 June 2006 8 3 Exemplary projects Angerhof, Munich & Péribonka, Canada

Excavation pit for innercity office building

Trench Cutter excavating sealing wall

06-10-IR-Presentation_as of 30 June 2006 9 3 Exemplary projects Dubai palm islands

06-10-IR-Presentation_as of 30 June 2006 10 3 Exemplary projects Merow dam, Sudan

06-10-IR-Presentation_as of 30 June 2006 11 3 Bauer Annual Exhibition

06-10-IR-Presentation_as of 30 June 2006 12 4 Longstanding healthy business development Steady growth and successful product diversification CAGR(b) 900 (a) Specialist Total Group revenues 2005 1990 – 2005 construction 800

Foundation 14% Equipment 700 Construction (Germany) 13% 38% ~12% 600 35% 500

Foundation ~17% 400 Construction (international) 300 ~7% 200

Total Group revenues (EUR million) 100 ~1% 0 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 Foundation Construction (Germany) Foundation Construction (international) Specialist construction Equipment (a) Post consolidation (b) Compound annual growth rate Note: 1980 – 2002 based on HBG figures, 2003 – 2005 based on IFRS figures 06-10-IR-Presentation_as of 30 June 2006 13 4 Financial results - overview

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/a EBIT 47,479 9,769 18,457 88.9% business segment construction(b) 3.28% 0.24% -0.37% n/a business segment equipment(b) 9.2% 6.4% 9.3% n/a Margin (c) 6.1% 2.8% 4.3% n/a Net income (a) 19,505 499 5,914 n/a Margin (c) 2.5% 0.1% 1.4% n/a earnings per share (in EUR) (d) 1.32 0.0 0.38 n/a

n/a not applicable (b) of Total group revenues pre-consolidation (a) pre-minorities (c) of Consolidated revenues (P&L) (d) earnings per share FY 2005 adjusted (share split 1:6) 06-10-IR-Presentation_as of 30 June 2006 14 4 Financial results - regional development

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

Construction H1 2006 - EUR 256.4 million Equipment H1 2006 - EUR 212.1million Others Others Germany 3% Americas 4% 13% Americas 10% 20% Far East Germany 40% 11%

Far East Rest of Europe 8% Middle East 40% 17% Middle East Rest of Europe 16% 18% 06-10-IR-Presentation_as of 30 June 2006 15 4 Financial results - by business segment

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%

in % of Total group revenues (a) 38.2% 44.5% n/a EBIT margin(b) 6.4% 9.3% n/a Other revenues 8,305 8,295 -0.1%

in % of Total group revenues (a) 2.2% 1.7% n/a Eliminations/ consolidations -18,578 -22,877 n/a

Total group revenues 363,507 453,867 24.9%

n/a not applicable (a) pre-consolidation (b) of Total group revenues pre-consolidation 06-10-IR-Presentation_as of 30 June 2006 16 4 Financial results - P&L positions

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 % of Consolidated revenues (P&L) 0.1% 1.4% n/a

Minority interest 438 455 n/a Net income attributable to 61 5,459 n/a shareholders of Bauer AG

n/a not applicable 06-10-IR-Presentation_as of 30 June 2006 17 4 Financial results - P&L cost items

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% % of Consolidated revenues (P&L) 58.5% 56.6% n/a

Personnel costs 80,094 84,982 6.1% % of Consolidated revenues (P&L) 22.8% 19.8% n/a

Depreciation 21,791 23,760 9.0% % of Consolidated revenues (P&L) 6.2% 5.5% n/a

Other operation expenses 34,457 59,531 72.8% % of Consolidated revenues (P&L) 9.8% 13.8% n/a

EBIT 9,769 18,457 88.9%

n/a not applicable 06-10-IR-Presentation_as of 30 June 2006 18 4 Financial results - Balance sheet positions

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%

06-10-IR-Presentation_as of 30 June 2006 19 4 Financial results - Cash flow positions

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

06-10-IR-Presentation_as of 30 June 2006 21 5 Outlook

ƒ Signs of recovery in German construction market continue to strengthen ƒ Order book increase sustainable ƒ Most of pre-financing requirements will net out towards year end ƒ Demand for BAUER equipment very strong - challenge to serve all potential customers in time ƒ Innovations (eg. QuattroCutter, geothermal drilling equipment) are well received in the market ƒ Increase in equipment capacity allows for further business expansion ƒ new production plant for steel parts near Moscow ƒ new production halls in Schrobenhausen, Aresing, Peine (Prakla), Immenstadt (MAT) ƒ new administrative office for headquarter in Schrobenhausen ƒ Organizational reorganisation continuously improves operational strength

06-10-IR-Presentation_as of 30 June 2006 22 5 Outlook Areas of strategic development

Optimisation of Fast pace of innovation M&A in related areas operations

New QuattroCutter International production and global sourcing

Transferring core competencies to new markets

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

06-10-IR-Presentation_as of 30 June 2006 23 5 Outlook Attractive growth of worldwide construction market

Global GDP outlook Construction industry Specialist foundation

Construction ƒ Higher density in ƒ High infrastructure metropolitan areas ƒ Sound economic investments environment ƒ Increased complexity of projects ƒ Key industry to growth in ƒ High GDP growth, emerging markets especially in emerging Equipment markets ƒ Key driver of process cost ƒ Stable demand from reductions established economies ƒ New applications through innovation

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

06-10-IR-Presentation_as of 30 June 2006 24 5 Outlook Concentration of metropolitan areas

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

06-10-IR-Presentation_as of 30 June 2006 25 BAUER Aktiengesellschaft

ƒISIN DE5168108 ƒReuters B5AG.DE ƒBloomberg B5A GR

ƒListing

ƒIndices C-DAX Classic All Share Prime All Share

Investor Relations BAUER Aktiengesellschaft Wittelsbacherstraße 5 D - 86529 Schrobenhausen Tel.: +49 8252/ 97- 1918 Fax: +49 8252/ 97- 2900 Email: [email protected]