225 years of Bauer: Proud of what we have achieved together

Bauer foundation piles support Karl Bauer (1894 – 1956), who required new well and water Dr. Karlheinz Bauer – were car- the glass dome of the Reichstag took over the business after World pipelines. The work was diffi cult; ried out under the management of building in Berlin, Germany; the War I. An important step was the the biggest and most important Karl Bauer. 828-meter-tall Burj Khalifa in construction of the central water tool was the tripod. With Dr. Dubai stands on Bauer founda- supply system for Schrobenhau- Karlheinz Bauer, born in 1928, In the 1950s, Bauer turned more tion piles – Bauer has infl uenced sen in 1928. Eventually, the water the next generation of the family and more towards specialist specialist foundation engineering supply and well drilling business entered the business during this foundation engineering. A major since the mid 20th century. The expanded all across Bavaria. reconstruction phase. He was al- development was the invention equipment segment was also World War II badly affected the ready well established in the busi- of the grout injection anchor in growing, and soon new solutions company, as an increasing num- ness when his father, Dipl.-Ing. 1958. The company was contract- were being found for numerous ber of employees were drafted Karl Bauer, died unexpectedly ed to construct a large, exposed problems in the construction into the army. in 1956. The fi rst projects in the excavation pit with anchored pile segment. What once started in a fi eld of foundation engineering walls for Bavarian Broadcasting small town in Upper Bavaria has Just a few months after the war – subsequently termed ‘special- Corporation center in Munich. To developed into an international had ended, many cities and towns ist foundation engineering’ by do so, shafts into which the an- company in a short span of just chors were to be drilled and fi xed half a century. Despite its growth, in place were sunk outside of the Bauer has remained a family pile wall. But the bores deviated, business, whose roots go back and missed the shafts. Under tre- 225 years. mendous time pressure, an idea emerged: to grout the anchor tip In 1790, Sebastian Bauer ac- through the casing tube with ce- quired a coppersmith’s shop in ment. The anchors held and the Schrobenhausen. Ten years later, “Bauer anchor” was born. The he managed to obtain a second invention was patented, and the workshop, and soon he was the fi rst licenses went to France, the only coppersmith in the town. UK, Japan and Russia. Bauer ex- The fourth Bauer generation perienced a boom in the 1960s. struck out on new paths with An- The fi rst contracts outside Ger- dreas Bauer (1858 – 1933): he many were in Switzerland and discovered that it was possible to Austria; these were followed by drill artesian wells in Schroben- a large demand for construction hausen, and was given the order engineering in the Middle East to construct the well for the wa- because of the oil boom. Bauer terhouse of the railroad station in won contracts in Libya and Saudi Schrobenhausen, on the new rail- Arabia. However, there was no way line between Augsburg and specialized machinery for new Ingolstadt. methods, pile driving and an- choring. Hence, it was decided The move into well drilling was to develop a new concept and further advanced by Dipl.-Ing. The coppersmith’s house in Schrobenhausen around 1900. manufacture a brand new anchor Page 2

drilling rig – the fi rst UBW 01 strategy with incredible success rolled off the production line in by the end of the 1980s, mainly 1969. The fi rst rotary drilling rig due to the strong international – BG 7 – followed in 1976, and in expansion – previously, about 1984, the trench cutter. The fi rst 80 percent of our construction large-scale manufacturing unit – business was based in Germany. today’s “Schrobenhausen plant” We went from one country to an- – was also built in 1984. other, from Saudi Arabia to Abu Dhabi, from Bahrain to Dubai, Prof. Dipl.-Kfm. Thomas Bauer, Kuwait, the USA, England, or, born in 1955, representing the in the Far East to Kuala Lumpur seventh generation of the Bauer – wherever there was money for family, joined the company in construction projects.” 1982. He started his early years in the family business as a com- By that time, the business had mercial manager of the Interna- reached a size which called for tional Division, and soon thereaf- a new legal form, and in 1986, ter took over the management of the new limited company BAU- commercial administration and ER Spezialtiefbau GmbH was production. From 1986 onwards, entered in the Commercial Reg- Well drilling with a tripod into the 1950s. he acted as the sole managing di- ister of Companies. Towards the rector of the company, and simul- end of the 80s, Managing Direc- taneously headed the company’s tor Thomas Bauer took specifi c specialist foundation engineer- steps to strengthen the specialist ing operations in Germany for a foundation engineering business number of years. as well as the equipment segment in Germany and abroad through “The situation for the Bauer a strategic addition: through new group was very diffi cult at the business divisions related to spe- beginning of the 1980s,” says cialist foundation engineering, Thomas Bauer. “The German Bauer was to offer full-service construction market was at rock packages and operate as a general bottom. All large construction contractor. The fi rst steps along companies tried to improve their this road were the founding of situation by entering specialist Wöhr + Bauer GmbH and BAU- foundation engineering, hoping ER und MOURIK Umwelttech- In 1956, the plant was moved from downtown to the loading station to be given follow-up orders to nik GmbH & Co. which was to be found in the present-day BAUER-Strasse. build the structure after fi nishing the excavation pit. All of a sud- The market situation in Ger- den, there were numerous com- many changed fundamentally panies in the fi eld of specialist during this period: 1989 be- foundation engineering; a proper came a turning point in history, war for tenders ensued, in which with the fall of the Berlin Wall. smaller companies did not stand German reunifi cation opened a chance. This led to cut-throat up huge opportunities in the competition; it was impossible to construction industry. The Bau- earn money with specialist foun- er management also wanted to dation engineering. At this time, contribute to the reconstruction we already had an active presence process. “It was not just the abroad – in Saudi Arabia, Libya strategic aspects that played a and Egypt. However, econom- part in our decision; it was also ic conditions in these countries an emotional decision to say: were also not satisfactory due to we want to participate fair and the low price of oil.” square in the reunifi cation,” says Thomas Bauer. The sub- These problems were solved by sidiary SPESA Spezialbau und devising a new strategy: “The Sanierung GmbH was founded goal was to set the company up with Schachtbau Nordhausen. on three strong bases: domestic In the summer of 1992, Bauer construction, international con- was confronted with the pri- Invention of the grout injection anchor on the construction site of struction and equipment sales. vatization of SCHACHTBAU the Bayerischer Rundfunk (Bavarian Broadcasting Corporation). We were able to implement this NORDHAUSEN GmbH, and it Page 3 was decided to buy the business. to the changes in the world. In The 90s were an exciting era for particular, the already advanced everyone involved in the con- process of internationalization struction industry. The boom of strengthened the company in the initial years – during which all areas. Soon 85 percent of the Bauer constructed numerous ex- Equipment segment’s total rev- cavation pits in Berlin, Leipzig enue was generated outside of and Dresden – lasted only until Germany; the Construction seg- 1995. The immense construction ment earned three times more demand attracted too many inter- with its international business national competitors and led to a than in Germany. ruinous price war. “Construction companies earned virtually no In 2001, BAUER Maschinen money when the capital moved GmbH – previously a division of from Bonn to Berlin,” says BAUER Spezialtiefbau GmbH Thomas Bauer. Over the follow- – became an independent entity. ing critical years, Bauer was able BAUER AG, founded in 1994 as to keep its earnings reasonably a holding company, took on ser- stable with its international con- vice functions for the operating struction business and the world- companies. Thomas Bauer has Marienhof excavation pit for the underground/overground rail cros- wide equipment sales, which been the Chairman of the Man- sing, Munich 1967. were being developed since the agement Board of the AG ever 1980s. The German construction since; the operating companies market plunged into a recession are headed by newly appointed which lasted for more than ten directors. years, resulting in the downfall of a number of well established The Equipment segment experi- companies and loss of a signif- enced the strongest development icant number of jobs in the con- during this period. In 2002, a struction industry. large production hall with ex- tensive grounds was acquired in The Far East crisis of 1998/99 Aresing near Schrobenhausen, had a devastating impact on the providing perfect conditions for Karl Bauer (left) turned the company into an industrial well drilling busi- equipment business. “At that effi cient assembly of large ma- ness known throughout Bavaria. With specialist foundation engineer- time, about 25 percent of our chinery. The Equipment segment ing and equipment manufacturing, Dr. Karlheinz Bauer (centre) led the company’s turnover was generat- grew, new subsidiaries were company into new dimensions. Prof. Dr. Thomas Bauer shaped what ed in Asia. This market collapsed acquired, new capacities had to is now a global Group, with a network on all continents. overnight, so to say,” Thomas be built in Schrobenhausen and Bauer remembers. The compa- other locations in Germany. Pro- ny’s management employed all duction facilities were also estab- its efforts to guide the business lished in the USA, Russia, China, through the crisis, and new mar- Malaysia, Italy and Sweden. kets were opened up through a combination of fl exibility and In 2005, the German construction skillful adaptation. Thomas Bau- industry began to show signs of er continues: “In 1999, we had recovery. During this phase, the to report a loss of about 18 mil- company was preparing for its lion DM. Banks, in particular, stock market listing – a major had no sympathy for our losses step in the history of the compa- in Asia. However, the following ny. On July 4 2006, BAUER AG year already showed signs of im- was listed on the Frankfurt Stock provement: at the beginning of Exchange for the fi rst time. the year, we managed to obtain In early 2007, the market pres- the contract for the construction ence of the BAUER Group was of foundations for a power plant restructured. Alongside the two in Malaysia, which offset the existing pillars of the business losses – the year 2000 has been – construction and equipment the best year in the history of our – a third segment, BAUER Re- company.” sources GmbH, was established, grouping together spin-offs of After the year 2000, the company business units from the other two undertook targeted steps to adapt segments. Bauer Resources spe- The fi rst Bauer rotary drilling rig, a BG 7, left the plant in 1976 Page 4

cializes in environmental tech- world is gaining importance. Oil nology, water, mineral resources and gas supplies are diminishing, – a concept designed to meet the new deposits must be tapped into, challenges of the future. or already developed sources must be exploited better,” Thom- In the years 2007 to 2009, the as Bauer says. “Of course, from largest investment program in our point of view, the currently the company’s history was im- low price of oil is not good, but plemented. A new administration we can, without a doubt, count on building was built at the Group’s the shortage of resources sooner headquarters in Schrobenhau- or later, and the subsequent in- sen. The construction of the new crease in demand for deep drill- building and the renovations of ing equipment. I am confi dent the old main building were com- that the production and sales of pleted in early 2009. The steep deep drilling equipment will be growth in the equipment seg- important in the future, and that it ment required major construction is the right way to go for us. The works at the Aresing plant, in or- order we received from Saxon at der to ensure that the production the end of 2014 is a major step, meets the demand. The structural and a confi rmation of our strate- Bauer headquarter in Schrobenhausen. steel engineering division of the gy.” Equipment segment was relo- cated to completely new prem- In 2012, Bauer reached and ex- ises in Edelshausen. The weld- ceeded the milestone of 10,000 ing and lathe shops were given employees all over the world; in space in the large halls, and an- 2013, the company received the chor production was relocated to bauma Innovation Award for the Edelshausen. At the SCHACHT- construction and successful in- BAU NORDHAUSEN GmbH stallation of an underwater drill- plant, welding facilities were ex- ing rig for a tidal turbine off the panded. coast of Scotland. In the same year, Bauer Spezialtiefbau started While the Shanghai and Tian- the construction of the Kingdom jin plants in China were being Tower in Saudi Arabia and the expanded and modernized, the Lakhta Tower in Russia – which need was identifi ed to establish will soon be the tallest buildings the company’s own production in the world and in Europe, re- plants for drilling rigs and anchor spectively. equipment in the USA, in order to be present in the dollar zone When talking about special- and to develop a closer connec- ist foundation engineering, one tion with clients. The new plant thinks of large construction sites, in Conroe, north of Houston, and the tall masts of drilling rigs Texas, was opened in autumn driving into the soil with enor- 2009. In 2010, Bauer Resources mous force using sophisticated Foundation work for the next tallest building in the world – the completed the construction of technologies. But, the expertise Kingdom Tower in Saudi-Arabia. the fi rst reed purifi cation system of the engineers and the efforts of in the Sultanate of Oman. In this the people “out there” on the con- multiple award-winning project, struction sites and also “at home” water contaminated during the in the offi ces also belong to this production of oil is purifi ed using picture of specialist foundation a completely biological method. engineering. Currently, Bau- er has over 10,300 employees In the past few years, the BAUER worldwide. “The most import- Maschinen Group has entered an ant components of our success additional market with the devel- are the know-how, dedication opment and production of deep and enthusiasm of our employ- drilling rigs. Bauer Maschinen ees,” Thomas Bauer states. “We sold the fi rst deep drilling rig to are proud of what all of us have South America in 2011. “It has managed to achieve together, and Development of the total Group revenues according to segments been obvious for a long time that look forward to our role in shap- in million Euros. the deep drilling business in the ing the future.”