BAUER AG adjusts forecast for the 2022 financial year

Schrobenhausen, Germany – The Executive Board of BAUER Aktiengesellschaft (ISIN DE0005168108) today decided to adjust the forecast for the financial year 2022 given on April 7, 2022 with the publication of the Annual Report.

Due to the increasing tightening of sanctions imposed by the European Union and the resulting customer restraint, sales of drilling rigs and drilling tools to Russia as well as sales of the affiliated companies in Russia have considerably declined. Similarly, demand for construction services has fallen sharply. According to the Management Board's assessment, no improvement in business development in the Russian market is to be expected in the foreseeable future. As a result, BAUER AG has examined the value of the investments and future prospects for the Russian-based affiliates due to the now limited business opportunities.

As a result of such examination, an impairment loss will have to be recognized on the respective goodwill for the Russian-based companies in the Equipment segment and the Construction segment as of the next reporting date. In total, this will result in a negative contribution to earnings of around EUR 15 million.

As a result of this impairment loss and the weaker operating performance in the Construction and Resources segments already explained in the half-year report, the Executive Board now assumes in its projection for the full year 2022 that the forecast for the financial year 2022 given in the Annual Report 2021 can no longer be achieved. Previously, a significant increase in the Group's total operating performance and EBIT had been expected.

The company now expects EBIT to be significantly lower than the previous year (year-end 2021: EUR 36 million). The forecast for total Group revenues remains unchanged.

The methods for calculating the total Group revenues can be found in the notes to the 2021 Annual Report on p. 102.