Our Company Sustainability Report 2013

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Our Company Sustainability Report 2013 Sustainability Report 2013 Our Company in the Community The Group at a glance Group key figures 2010 – 2013 IFRS in EUR million 2010 2011 2012 2013 Change (adjusted) (adjusted) 2012/2013 Total Group revenues 1,304.0 1,371.8 1,431.2 1,504.2 5.1 % of which Germany 339.1 370.3 374.0 410.4 9.7 % International 964.9 1,001.5 1,057.2 1,093.8 3.5 % of which Construction 615.4 606.6 650.6 731.3 12.4 % Equipment 581.7 636.5 589.1 628.7 6.7 % Resources 177.7 211.5 262.8 199.2 -24.2 % Sales revenues 1,131.7 1,219.6 1,339.8 1,402.2 4.7 % Cost of materials 627.0 672.8 686.8 755.9 10.1 % Staff costs 282.5 298.8 325.0 342.8 5.5 % EBIT 88.4 82.3 72.0 30.1 -58.2 % Net profit or loss 39.8 34.1 25.8 -19.4 n/a Employees (on average over the year) 9,094 9,646 10,253 10,264 0.1 % of which Germany 4,036 4,065 4,090 4,144 1.3 % International 5,058 5,581 6,163 6,120 -0.7 % Balance Sheet of the BAUER Group ASSETS in EUR '000 31.12.2012 31.12.2013 EQUITY AND LIABILITIES in EUR '000 31.12.2012 31.12.2013 NON-CURRENT ASSETS SHAREHOLDERS' EQUITY Intangible assets 34,567 35,388 Equity of BAUER AG shareholders 449,677 396,602 Property, plant and equipment and Minority interests 33,398 22,809 investment property 465,316 459,537 483,075 419,411 Investments accounted for using the equity method 13,133 12,651 NON-CURRENT LIABILITIES Participations 3,638 3,613 Defined benefit plans 51,859 81,637 Deferred tax assets 20,231 26,299 Receivables from concession arrangements 40,770 36,762 Financial liabilities 465,085 279,437 Other non-current assets 8,597 7,564 Other liabilities 8,674 6,483 Other non-current financial assets 6,846 5,420 Deferred tax liabilities 19,397 14,788 593,098 587,234 545,015 382,345 CURRENT ASSETS CURRENT LIABILITIES Inventories 429,794 419,352 Financial liabilities 190,542 449,876 Receivables and other assets 448,836 517,978 Other liabilities 281,257 307,203 Effective income tax refund claims 4,514 3,437 Effective income tax obligations 4,808 9,606 Cash and cash equivalents 45,232 57,217 Provisions 16,777 16,777 928,376 997,984 493,384 783,462 1,521,474 1,585,218 1,521,474 1,585,218 Sustainability Report 2013 2 Machinery plants 34 Employees 35 The key to our success 4 Milestones of Sustainability 36 Trainees and students 6 Foreword 38 Training at Bauer 40 Training and development 8 Company 41 Work-Life Balance 9 The BAUER Group 43 Goals 11 Management and Responsibility 15 Quality 44 Environment 17 Goals 45 Environmental management 46 Production Figures 18 Projects 49 Goals 19 Our Segments 24 Goals 52 About this Report 26 Stakeholders 54 GRI Index 27 Interaction with our Stakeholders 33 Goals 2 Machinery Plants USA BAUER Manufacturing 78 80 Conroe Conroe Employees Plant Countries with registered subsidiaries and facilities Shown locations of the Equipment segment for which environmental data is collected MACHINERY PLANTS 3 SCHROBENHAUSEN LOCATION 1,433 289 330 Schrobenhausen Aresing Edelshausen FAR EAST BAUER Tianjin Technologies 203 Tianjin Shanghai BAUER Technologies 77 Shanghai BAUER Equipment Malaysia 89 Kuala Lumpur GERMANY 231 83 82 Drolshagen Peine Immenstadt 43 122 808 Drolshagen Olbersdorf Nordhausen 4 Milestones of Sustainability 1980 – 1994 1995 – 2005 1980 1995 - Establishment of the Safety and Environmental - Production of the first corporate eco-statement Protection department - First audit by an eco-auditor 1987 1996 - Establishment of the Leisure, Sports and Cultural - First registration as an EMAS-certified company operating Committee an environmental management system - Sign-up to the Bavarian Eco-Pact - Founding member of the Association of Ethical Manage- 1988 ment in the Construction Industry - Creation of an integrated management system covering quality, environmental protection, health and safety 1997 - First certification of ethics management 1990 - BAUER and MOURIK Umwelttechnik GmbH is the first 2004 company specializing in environmental technology - Establishment of the BAUER Foundation 1991 2005 - Production of the first Social Report - Founding of BAUER Umwelt GmbH as a holding company - Contribution to developing occupational profiles for the Group's environmental businesses 2013 - Foundation works on what will be the tallest buildings in the world and in Europe - Winning of the Bauma Innovation Award for an undersea drilling process - KLEMM Bohrtechnik GmbH celebrates its 50th anniversary MILESTONES OF SUSTAINABILITY 5 2006 – 2009 2010 – 2012 2006 2010 - First employee satisfaction survey - 20 years of environmental technology in the BAUER Group - Completion of the BAUER Group's first large-scale reed-bed treatment plant in the Sultanate of Oman 2007 - Opening of the BAUER Ausbildung Center - Establishment of the Resources segment with a focus - Opening of the training circuit at the Aresing plant and on water, environment, energy and mineral resources licensing of the BAUER Training Center GmbH as the first - Creation of a corporate-wide master guideline for institution in Germany accredited to conduct drilling rig and management approaches aimed at a sustainable pile-driver operator's permit testing business culture - First external management system certification in the area of occupational safety 2011 - Development and production of the Bauer Seabed Drill (BSD 3000) 2009 - First mono-pile foundation for a tidal turbine - BAUER Group publishes its first Sustainability Report - First-time offering of a dual study course in mechanical - Opening of new head office administration building in engineering and information technology Schrobenhausen and of Edelshausen plant; inaugu- ration of machinery manufacturing plant in Conroe, Texas, USA 2012 - When establishing new facilities, or extending existing - Celebration of the 40th anniversary of its employee facilities, we thoroughly investigate all possibilities for suggestion system using renewable energy and saving energy - Leisure, Sports and Culture committee celebrates its 25th anniversary - Opening of the first soil treatment center in Austria 6 Foreword Ladies and gentlemen, Dear employees, partners and friends of our company, You hold in your hands the sixth Sustainability Report of the BAUER Group. It has become a rewarding tradition to bring you news each year about activities, initiatives and projects that go beyond our normal daily operations. At the core of these activities lie people – our staff, partners, and friends, our customers and the many others who come into contact with BAUER on a daily basis. Last year, we gave our Sustainability Report a new title: “Our Company in the Community”. I've often been bothered by calling it simply a “Sustainability Report” – I believe that says too little. The term “sustainability” has also become so overused in today's society that it's starting to lose meaning. Everything and everyone either wants to or must be sustainable today. In many industries, public pressure also plays an enormous role. With the new title, we have tried to express what for us, as for me personally, is most important: namely, how our company should present itself and act in society – as part of the community, as a place of employment and social interaction for the many people who work for us, as a reliable partner for our customers and as a promoter of volunteerism and initiatives. I hope that, with this new title, we will be able to express our basic principles a little bit better. Without a doubt, financial success plays key role for our company and its position in society. When I look back at the last year, I see that we were not successful in meeting this goal. For the first time in 14 years we had to report a loss. This was caused by numerous problems and adversities in our well construction project in Jordan in our Resources segment, which resulted in a major loss. We were also forced to deal with weak mining markets and a low demand for well construction materials. In the Construction segment, we experienced delays with some of our large contracts, which led to a loss in our dam project in the US. Despite higher sales, the Equipment segment fell short of its net earnings compared to the previous year. Even with total Group revenues of EUR 1.5 billion, we ended the year with a EUR 19.4 million loss on the books. Of course, I am not happy with these results. Many of our recent problems and setbacks can certainly be attributed to extraordinary items or special projects. Additionally, the widespread political unrest in many parts of the world, especially in hot spots in the Middle East, such as Egypt, Syria, Libya and Iraq. There is also the current crisis in Ukraine. With the world in such turmoil, as an international company we have to struggle with a great deal of volatility and unsteadiness. We don't want to be content with the current situation. That's why, over the last several years, we have begun tackling many new issues and made enormous efforts to better ourselves. We continue to work on improving the quality and efficiency of our existing equipment series. By expanding our service network, we are able to provide excellent service quality and spare parts supply to our customers worldwide. With our underwater drilling systems and related processes, we are optimally equipped to act once the market revives. We continue to work on making our deep drilling rigs more automated and safer. We haven't gotten as far in this area as we would like, but we have gained very important opportunities.
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