News for our shareholders, partners and friends 03/2015

Dear readers,

In the autumn issue of our pu-

blication BAUERcompact, we

would like to inform you about

what has been going on in our

Group in the past few months.

Learn about why our compa-

ny returns to Canadian ice

after almost 15 years. We

look back on the bauma Con-

expo Africa 2015 and present

to you the BAUER Perforati-

on Cutter – an auxiliary unit

for wet extraction based on

proven, globally established

diaphragm wall cutting tech-

nology.

Furthermore, we make a de-

tour to Grenzach-Wyhlen in

Baden-Wuerttemberg, where

work on the biggest order in

the history of Bauer started at

the end of September.

We hope you will enjoy rea-

ding this issue!

Your BAUERcompact-Team

compact

Topics covered in this

issue:

Construction Machinery

Trade Fair

Bauer Maschinen at bau-

ma Conexpo Africa

Page 2

BAUER Perforation Cutter

Tailor-made solution

Page 3

Starting Signal

Ground-breaking cerem-

ony for the largest-ever

contract

Page 4

BAUER GROUP

Major project to build cut-off wall for diamond mine in Canada

In August, BAUER Founda-

tions Canada Inc., the Canadi-

an subsidiary of BAUER Spe-

zialtiefbau GmbH, acquired

a major project worth about

EUR 65 million to build a cut-

off wall for the Diavik Dia-

mond Mine in Canada.

The Diavik mine is operated

by Diavik Diamond Mines

(2012) Inc., a member of the

Rio Tinto Group, and is loca-

ted approximately 220 kilo-

meters south of the Arctic Cir-

cle and 300 kilometers by air

from Yellowknife, the territo-

rial capital. The project marks

a return to this subarctic site

for the BAUER Group. From

2000 to 2002, BAUER Ma-

schinen GmbH – in partner-

ship with other companies and

using a range of equipment

– was involved in the const-

ruction of the water retention

dikes that enabled open-pit

mining of diamonds from the

fi rst three kimberlite pipes.

„It‘s a great story that our

company is returning to Dia-

vik almost 15 years later

to take an active part in the

further progression of the

mine. It shows that the client

has great confi dence in our

services,“ said Prof. Thomas

Bauer, Chairman of the Ma-

nagement Board of BAUER

AG.

A 26 meter deep cut-off wall

is required for the 2.2 kilome-

ter dike so that the fourth kim-

berlite pipe, designated A21

and located under the waters

of Lac de Gras, can be open-

pit mined. Bauer offered the

Cutter-Soil-Mixing method

(CSM), which combines cut-

ter diaphragm walling techno-

logies and the Mixed-in-Place

method. The CSM technique

is implemented through the

use of trench cutters that are

specially modifi ed for this

process. By using the in-situ

soils, the CSM technique

provides substantial logistic

advantages and cost savings

compared to more traditional

methods.

The location of the mine pre-

sents special challenges: work

can only be done between

May and October because

temperatures are too low du-

ring the winter months. Logi-

stics is another major challen-

ge, as large transports are only

possible during an eight week

period in the winter when the

ice road to the mine is open.

As a result, the project will

be completed in two stages in

2016 and 2017. In 2016, the

company will use two BAU-

ER BG 30 rotary drilling rigs,

three universal drilling rigs

from KLEMM Bohrtechnik

GmbH and cranes to comple-

te soil improvement, perform

trials, carry out curtain grou-

ting work in the underlying

rock and some other essential

preliminary works for the cut-

off wall. In 2017, the cut-off

wall will be completed using

the CSM method and jet grou-

ting. Five BG 30 rigs will be

used for this fi nal stage of the

project. These BG 30s will be

specially confi gured to carry

out three activities on this pro-

ject: pre-drilling, CSM work

and jet grouting therefore de-

monstrating the versatility of

Bauer’s equipment.

From 2000 to 2002, BAUER Maschinen GmbH was involved in

the construction of the water retention dikes for the Diavik Mine.

BAUERcompact Page 2 03/2015

TRADE FAIR

Good response: Over 14,000 visitors at bauma Conexpo Africa Cut off walling works

in India

BAUER Spezialtiefbau GmbH

received another major pro-

ject in September. In joint

venture with its Indian partner

L&T GeoStructure, the com-

pany was awarded to build a

cut off wall for the Polavaram

dam in India. The project is

worth in excess of EUR 60

million.

The Polavaram dam, which

will be constructed in the east

of the country in the state of

Andhra Pradesh, will provide

water and electric power sup-

ply for the region.

The specialist foundation

work includes the creation of

68,000 square meters of cut

off wall with a length of 1.5 ki-

lometers down to a depth of

110 meters. Two duty-cycle

cranes, MC 96 with a grab

and MC 128 with a BC 40

trench cutter, will be used by

Bauer.

Work on the project is to be-

gin in November with the mo-

bilization of the construction

site and should be fi nished by

the end of 2017.

NEWS IN BRIEF

Johannesburg, South Afri-

ca – After its successful pre-

miere two years ago, the con-

struction equipment trade fair

bauma Conexpo Africa once

again opened its doors from

15 to 18 September 2015 in

Johannesburg. The BAUER

Maschinen Group participated

this year as well, exhibiting

machines especially selected

for the South African market.

The Bauer team welcomed nu-

merous visitors at their stand

in the open-air area of the Jo-

hannesburg Expo Centre.

Bauer Maschinen’s very suc-

cessful BG series was repre-

sented by a BAUER BG 20 H

PremiumLine. Above all, this

compact, highly versatile ro-

tary drilling rig demonstrated

the multifunctional concept

of the BG rig series. The ma-

chine was already pre-fi tted

with the equipment needed for

the installation and operation

of a heavy-duty hydraulic cas-

ing oscillator. With it, tempo-

rary drill pipes can be inserted

in and removed from the soil

even with diffi cult ground

conditions. Furthermore, the

machine was also equipped

with the preliminary setup

for the installation of piles

with the double rotary method

(FoW). The bored pile walls

bored with FoW-equipment

as retaining walls for deep ex-

cavations can be constructed

adjacent to neighboring build-

ings.

The wide application spec-

trum of specialist foundation

engineering equipment was

demonstrated by two oth-

er machines manufactured

by subsidiaries of BAUER

Maschinen GmbH: Hausherr

System Bohrtechnik develops

and manufactures hydraulic

drilling rigs for use in quar-

ries, open cast mines and the

exploration of natural resourc-

es. Hausherr machines are par-

ticularly well suited for down-

the-hole drilling applications.

All models of this series are

also able to execute horizontal

drilling operations. The HSB

3000, a typical and powerful

representative of a Hausherr

nine-model series for drilling

blastholes with a max. diame-

ter of 165 mm to a depth of 45

m, was exhibited at the trade

fair. It is powered by a diesel

engine in the range of 290 to

350 kW and has an operating

weight of about 25 tons.

Klemm Bohrtechnik, the

specialist for anchor drilling

rigs in the BAUER Maschin-

en Group, demonstrated its

competence by exhibiting the

KR 909-1, a robust universal

drilling rig in the 13-ton class.

This machine has been spe-

cially designed for the varied

applications in the small-di-

ameter drilling sector.

The organizers of bauma Conexpo Africa counted some 14,300 visi-

tors. BAUER Maschinen GmbH could also welcome a large number of

guests at its stand.

616 exhibitors from 42 countries presented their equipment on the 68,000 square-meter fair trade

grounds.

03/2015 Page 3 BAUERcompact

BAUER PERFORATION CUTTER

Tailor-made solutionSchrobenhausen/Immensta-

ad, Germany – The BAUER

Maschinen Group manufac-

tures the full range of equip-

ment for specialist foundation

engineering, as well as equip-

ment for exploration, devel-

opment and extraction of nat-

ural resources. Furthermore,

it offers custom-made con-

cepts, such as the prototype

of the BAUER Perforation

Cutter that BAUER Maschin-

en GmbH developed for a cli-

ent from Immenstaad at Lake

Constance, who is operating a

gravel plant.

Initial situation: In Meichle

+ Mohr GmbH’s gravel plant

in Radolfzell on the shore of

Lake Constance, a floating

dredger with a twelve-cu-

bic-meter grab is used for un-

derwater extraction of gravel.

Hard layers are interbedded

in the subsoil and cannot be

loosened with the dead weight

of the 22-ton hydraulic grab.

These layers are made of con-

glomerate, a sedimentary rock

made of coarse components

(such as gravel, stones and

cobbles and boulders) and a

fine-grained sediment. The

solution: the new Perforation

Cutter, whose prototype was

custom-designed and devel-

oped by BAUER Maschinen

GmbH in 2014 to fit the re-

quirements of the gravel plant

operator.

Based on the Bauer equip-

ment used in the CSM method

(cutter-soil-mixing), BAUER

Maschinen GmbH developed

the idea of installing trench-

es in the solid hard layer with

the help of a rope-guided

cutter – to perforate the lay-

er, so to say. These trenches

provide access points for the

floating dredger to penetrate

the hard layer and excavate it.

This makes it possible to get

through to the deeper sand or

gravel layers. BAUER Perfo-

ration Cutter was successful-

ly put into operation in early

2014.

The cutter is lowered into the

water using two steel ropes.

All supply pipes lie between

the steel ropes. The drum,

which is used for the steel

ropes as well as for the supply

lines, has been designed for a

maximum working depth of

60 meters. It can be rotated

by 180 degrees and is mount-

ed on a tower segment. This

enables the perforation cutter

to reach three positions with-

out having to reposition the

pontoon. This way it is pos-

sible to cut two trenches with

a distance ideal for the width

of the floating dredger grab.

In the third position, the cut-

ter can be put on the deck of

the pontoon, e.g. for mainte-

nance.

The pontoon on which the

Perforation Cutter is mounted

can be attached to the floating

dredger and positioned with

its help. The perforation cut-

ter’s controls are integrated

in the floating dredger cab. At

the client’s request, the perfo-

ration cutter is operated by an

electrically powered hydrau-

lic power pack that uses the

same voltage as the floating

dredger and is located on the

pontoon.

Shortly after the perforation

cutter was first put into op-

eration, further potential ap-

plications were discovered:

In addition to using it to cut

through deeper, hard layers

of soil, the cutter is also used

to controllably make the ex-

tremely steep slopes which

are partially under the wa-

ter surface slide down. This

could not be done using the

hydraulic grab of the floating

dredger, since it could not get

close enough to the shore.

Also, extending the quar-

ry lake by blasting the con-

glomerate overhangs, which

were in places created by the

dredging, is no longer neces-

sary. The perforation cutter

cuts separate, closely spaced

trenches in the overhangs,

thus controllably causing

them to break off. This pre-

vents uncontrolled skidding

of the soil, thus preventing

the grab of the floating dredg-

er from getting trapped.

BAUER Perforation Cutter for hard soil layers in underwater extrac-

tion. Its drum can be rotated 180 degrees.

Perforating hard soil stratum: The trenches provide access points for the dredger to penetrate the

hard layer.

BAUERcompact Page 4 03/2015

Imprint:

BAUER Aktiengesellschaft Contact:

BAUER-Strasse 1 Corporate Communications

86529 Schrobenhausen Tel.: +49 8252 97-1218

Registered at the District Court public.relations@bauer.de

of Ingolstadt: HRB 101375 www.bauer.de

BAUER App: www.bauer.de/en/investor_relations/bauer_app.html

STARTING SIGNAL

Ground-breaking ceremony for thelargest-ever contractSchrobenhausen / Grenzach-

Wyhlen, Germany – Remedia-

tion of perimeter 1/3 NW of the

former Kesslergrube landfi ll

started at the end of Septem-

ber. Last July, Roche Pharma

AG awarded BAUER Umwelt

GmbH as the general contrac-

tor for the remediation. BAU-

ER Umwelt GmbH will be re-

sponsible for tasks such as site

mobilization and operations,

all civil engineering activities,

the excavation, removal and

thermal disposal of the soil as

well as the refi ll of the excava-

ted pit.

At the ground-breaking cere-

mony, around 60 guests were

greeted by a widely visible, lar-

ge-sized poster stating: “Here

we go”. This event marked the

offi cially start of the remediati-

on of perimeter 1/3 northwest

of the former Kesslergrube

landfi ll. Roche Pharma AG

will sustainably remediate pe-

rimeter 1/3 NW. All soil con-

taminated with waste will be

completely excavated while

being secured under a housing,

transported in special gas-tight,

damage-proof transport con-

tainers, and thermally dispo-

sed of. The remediation work

should be complete in 2020.

Along with Dr. Hagen Pfunder,

Chairman of Roche Pharma AG

and Dr. Tobias Benz, Mayor of

Grenzach-Wyhlen, Prof. Tho-

mas Bauer, Chairman of the

Management Board of BAU-

ER AG, also held the symbo-

lic spade. He was pleased that

Bauer was commissioned as

the general contractor: „We

look forward to the challenge

and we will do everything to

ensure that the remediation is

carried out safely and on time.“

Bauer will work closely with

all parties involved in the pro-

ject to ensure that the emissi-

ons arising from the work are

kept as low as possible for the

residents, stated Prof. Thomas

Bauer further.

The volume of the order for

Bauer is over EUR 100 million.

This is the BAUER Group‘s

largest single order to date.

Ground-breaking ceremony for the XXL remediation project in Gren-

zach-Wyhlen in Baden-Wuerttemberg. (Picture: Roche Pharma AG)

Sustainability Report 2014

We are pleased to inform you about what we were able to achie-

ve for our Group and its environment over the past year, in the

new Sustainability Report. One entire chapter is dedicated

to exciting specialist foundation engineering projects in Germa-

ny and all over the world. We report on the research activities

undertaken by BAUER Maschinen GmbH and about the diverse

projects in our Resources segment that are going to be actively

shaping the topics of the future.

Furthermore, the report highlights the contributions of the BAU-

ER Group to its local region over the last year – be it through

donations or by pushing or

participating in initiatives

and projects. However,

the main focus is on our

employees, working for

the company around the

world. We are proud of

our diverse corporate cul-

ture and dedicate special

attention to it in this re-

port. You can fi nd further

information as well as the

report in PDF format, as

printed or online version

at http://www.bauer.de/en/

bauer_group/csr.