Wacker Neuson SE. June 2016

Transcription

1 Wacker Neuson SE June

2 Agenda The Company Outlook Financials 2

3 Product range covers customer needs Light Equipment Compact Equipment Service Concrete Technology Soil and asphalt compaction Excavation Spare parts Financing Material handling Used Machines 1 Job-site preparation Repair 1 Maintenance 1 Rental service 1 1 In selected countries Revenue distribution 2015 (Total: 1.38bn) Regions: Europe 71.2%; Americas 25.3%; Asia-Pacific 3.5% Business segments: Light Equipment 29.8%; Compact Equipment 49.9%; Services 20.3% 3

4 Focus on profitable growth Comparison of years e (Revenue in EUR billion; EBIT as a %) +31% % % % +2-5% ,0% 25,0% 20,0% ,0% % 8.2% 10.6% 7.5% 7-8% 10,0% 200 5,0% e 0,0% 4

5 Strong brands and sales distribution worldwide for different industries Brands & Financing Sales channels Industries Direct Only in Central Europe Offering spare parts, maintenance Offering rental of WN machines Dealers Worldwide Offering spare parts (maintenance by dealers) Rental chains Worldwide Offering spare part (maintenance by rental chains or dealers) OEM 1 Included in Europe Revenue Distribution worldwide 1 Manufacturing for Claas and Caterpillar 5 Revenue distribution 2015 Construction and other industries 66% Agriculture 14% Services 20%

6 International footprint LE: Light Equipment production CE: Compact Equipment production CE: Korbach (Ger), 2007 CE: Pfullendorf (Ger), 2008 LE: Reichertshofen (Ger) CE: Hörsching (AT), 2012 CE parts: Kragujevac (Serbia), 2009 LE: Northon Shores (USA) LE + CE: Milwaukee (USA) HQ Munich (Ger), 2011 LE: Manila (Philippines) 2007 LE: Itatiba (Brazil) More than 50 affiliates, therefore over 30 sales affiliates and 5,200 dealers in over 12,400 sites worldwide 6

7 Official opening of our new assembly facility in Brazil (since April 2016) Itatiba, São Paulo, Brazil Products: mobile generators: kilovolt-amps (kva) expanding to 150 kva Target market: Latin America Start of production: April 2016 Roberto Martinez (Managing Director Wacker Neuson Máquinas Ltda. Brazil) and Cem Peksaglam (CEO) cutting the ribbon at the opening ceremony. In the region for the region 7

8 Competitive landscape for Wacker Neuson Group Market structures and dynamics Competitors Fragmented market Ammann Multiquip/Mikasa Light equipment/ construction Dominated by niche/specialized manufacturers Not targeted by heavy equipment manufacturers Quality rather than price Atlas Copco/Dynapac Bomag Bosch pt Significant barriers to market entry Hilti Compact equipment/ agriculture Fragmented market with local manufacturers Giant JCB Schaeffer Thaler Global competitors Compact equipment Heavy equipment Compact equipment/ construction Similar target groups to light equipment for the construction industry Specialized manufacturers Compact and heavy equipment providers Atlas Weyhausen Bobcat (Doosan) Kubota Manitou/Gehl Hitachi JCB Komatsu Liebherr Takeuchi Terex Yanmar Volvo 8

9 Zero Emission Wacker Neuson, a leader of alternative drive technologies 9

10 Alliance with HAMM AG proved successful New tandem rollers ( t) and compactors (weighing up to 12 t) The cooperation has extended the portfolio of soil and asphalt compaction rollers. 10

11 Agenda The Company Outlook Financials 11

12 Q1/16: Development of revenue and profitability Income statement (extract) and number of employees ( million) Q1/16 As % of revenue Q1/15 As % of revenue Change in % 1 Revenue (-1.3) Gross profit Sales and service expenses Research and development expenses General administrative expenses Operating expenses EBITDA EBIT ,4 Net profit Net profit per share in in brackets: adjusted to discount currency effects 2 without other income/expenses 12

13 Q1/16: Revenue growth by regions and divisons 1 Europe 2 Americas 2 Asia-Pacific 2 ( million) 231,3-2% (-1%) 227,4 ( million) 83,9-15% (-14%) 71,6 ( million) +91% (+98%) 17,4 9,1 Q1/15 Q1/16 Light equipment 3 Q1/15 Q1/16 Compact equipment 3 Q1/15 Q1/16 Services 3 ( million) 100,0-8% (-7%) 91,7 ( million) -1% (+0%) 166,1 165,2 ( million) +2% (+3%) 62,5 63,5 Q1/15 Q1/16 Q1/15 Q1/16 Q1/15 Q1/16 NA business weak demand for light equipment remained subdued 1 In brackets: adjusted for currency effects; 2 Nominal, after cash discounts; 3 13 Nominal, before cash discounts

14 Share price development Share price performance since January 2016 as % Key figures share in Q1/16 Earnings per share Dividend End of period ISIN / WK Reuters / Bloomberg Indices DE000WACK012 / WACK01 WACGn.DE / WAC GR SDAX, DAXplus family, CDAX, GEX, Classic All Shares High Low Book value Market capitalization (in m) , Share Prime All Share Total shares Shareholder structure 63% Family; 37% Free float (thereof management: 0.5%) 1 before minority interests 14

15 Agenda The Company Outlook Financials 15

16 Construction industry trends in Europe Outlook for Europe Growth in percent for 2016, 2017 and 2018 Country Value in 2015e in bn Germany United Kingdom France (change as a %) Italy Spain 80.2 Netherlands 66.9 Switzerland 55.6 Poland 45.5 Norway 41.9 Belgium 40.0 Sweden Austria 32.9 Euroconstruct Countries (EC-19) Euroconstruct December ,

17 Forecast for 2016 Revenue and margins e Wacker Neuson Group revenue trend 2016e (Revenue in billion) Europe 1.600, , % to +5% North America Latin America South Africa and Sub Sahara 1.200, ,0 20 Asia Australia 1 800, ,0 400,0 200,0 EBIT Margin 7.5% EBIT Margin 7-8% 10 5 Agriculture Construction Mining Oil & Gas 0, e 0 Other channels Revenue growth +2% to +5%, EBIT Margin 7.0% to 8.0% Investments of ~ 100 m, positive free cash flow Some developments offset each other, low visibility 1 Strong increase, but from a low base 17

18 Medium-term goal: keep on profitable growth track Goal: To increase revenue to more than EUR 2 bn in medium term and boost profitability 18

19 Great reason for choosing Wacker Neuson Group Strong financial position independence Long-term growth strategies, family culture Technology leader Highest product and service quality Flexible production, sophisticated logistics Balanced revenue structure Cross-industry focus Global footprint customer proximity Experienced, highly motivated employees Sustainable business practices Unparalleled extensive portfolio Strong profit margins 19

20 Appendix

21 2015: Development of revenue and profitability Income statement (extract) and number of employees for 2015 and Q (in m) 2015 in % of revenue 2014 in % of revenue Change in % 1 Q4/2015 in % of revenue Q4/2014 in % of revenue Change in % 1 Revenue 1, , (+2.7) Gross profit SG&A and R&D cost Operating expenses EBIT Net profit Net profit per share in (-0.8) EBITDA Number of employees 4,632 4, ,632 4, in brackets: adjusted to discount currency effects 2 without other income/expenses 21

22 2015: Gearing and equity Equity, net debt and gearing ( million) Net financial debt Equity before minority interests Gearing as a % (as a % of equity) ,0% 35,0% ,0% ,4% 18,9% 17,7% 18,7% 25,0% 20,0% ,0% ,0% 10,0% 5,0% ,0% High equity ratio of 69%, gearing <20% 22

23 2015: Working capital development Working capital (in m) Inventories Trade receivables Trade payables WC: +8% % % Working Capital ratio % 40.9% 38.1% 38.2% 40.1% 1 calculation: working capital reported at the closing date / annual revenue calculated on the basis of Q4 +23%

24 2015: Comfortable liquidity situation despite high investments Cash flow from operating activities Cash flow from investment activities Free cash flow Depreciation/amortization (in million) (in million) (in million) (in million) % % % %

25 2015: Positive economic value added (EVA) 1 ROCE II > WACC, positive EVA 1 : EUR 1.1 million ( million) Average capital employed (in % of revenue) Revenue Return on capital employed (ROCE II) Weighted average cost of capital (WACC) 1, , , (74.1%) (69.9%) (72.7%) (65.2%) 12.5% 10.8% 7.6% 7.7% 7.5% 7.5% 7.1% 7.1% 1, (71.0%) 7.3% 7.1% ROE (%) ROA (%) (ROCE II WACC) * average capital employed = economic value added (EVA) 2 Return on equity = Profit/loss after minority interests / average equity before minority interests 3 Return on assets = Profit/loss before minority interests / average balance sheet total 25

26 Q1/16: Multi-year comparison (5 years) (Revenue in million; EBIT Margin as a %) Revenue and EBIT Margin Q1 ( ) +11% -2% 9.8% 9.6% 4.3% 7.6% 5.5% Revenue in Q1/16 more or less on par with record level Q1/15 (only -2%), but profitability weak and unsatisfactory 26

27 Q1/16: Development of profit since Q1/15 (EBIT in million; EBIT Margin as a %) EBIT development Q1/15-Q1/16 EBIT EBIT margin 40,0 20,0% 35,0 31,7 34,0 18,0% 16,0% 30,0 14,0% 25,0 20,0 15,0 9,8% 8,9% 15,5 5,0% 22,4 6,3% 17,3 5,5% 12,0% 10,0% 8,0% 6,0% 10,0 4,0% 5,0 2,0% 0,0 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 0,0% Revenue in million

28 Q1/16: Ag business (Weidemann, Kramer, Claas) Revenue breakdown for Q1/16 Revenues 1 Q1/16 vs. Q1/15 (% of revenue) (in m) % 47.5 Construction and other industries Agriculture Services Q1/16 Q1/15 65% 65% 15% 16% 20% 19% Continued downturn in Ag business Q1/16 vs. Q1/15: -11% (2015 vs. 2014: -2%) Q1/15 Q1/16 1 Nominal, before cash discounts 28

29 Q1/16: Comparison of EBIT vs. previous year EBIT-change Q1/16 vs. Q1/15 (in m) EBIT Q1/15 Revenue volume effect Revenue margin effect S,G&A Other EBIT Q1/ Other income & expense Earnings negatively impacted in crisis-hit emerging markets/industries, regional/product mix and FX effects. 29

30 Q1/16: Development of profit per region ( million) 40 EBIT-change by region Q1/16 vs. Q1/ EBIT Q1/15 Europe Americas Asia-Pacific Consolidation EBIT Q1/ Q1/16 vs. Q1/15 Europe Americas Asia-Pacific Total Revenue -2% -15% +91% -2% EBIT -42% -118% -94% -45% EBIT Margin (Q1/15) 1 9.1% (15.5%) -2.1% (9.9%) 0.6% (19.8%) 5.5% (9.8%) 1 EBIT Margin of regions on total external sales 30

31 Q1/16: Comfortable liquidity situation despite high investments Cash flow from operating activities Cash flow from investment activities Free cash flow Depreciation/amortization (in million) (in million) (in million) 20,0 (in million) 00 Q1/15 Q1/16 0,0-5,0 Q1/15 Q1/16 0,0-5,0 Q1/15 Q1/16 18,0 16, % ,0-10,0-15,0 14,0 12, % -15,0-20,0-25,0 10,0 8, ,0-30,0 6, ,0-30,0-35, % ,0-40,0-45,0-50, % ,0 2,0 0,0 Q1/15 Q1/16 31

32 Q1/16: Working capital development Working capital Q1/12 Q1/16 ( million) Inventories Trade receivables Trade payables 625 WC: -4% % % March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015 March 31, Working Capital ratio (3M annualized revenue) 37.7% 48.9% 40.2% 48.2% 47.3% Decrease of working capital due to strict inventory management 32-12%

33 Q1/16: Gearing and equity Equity, net debt and gearing Q1/12 Q1/16 ( million) Net financial debt Equity before minority interests Gearing as a % % 21% 22% 19% % 16% Q1/12 Q1/13 Q1/14 Q1/15 Q1/16 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% High equity ratio of 67%, increase of net debt by 4% 33

34 Q1/16: Comparison of peer group construction divisions Q1/16: Comparison of peer group construction divisions Company Change in Profit Q1 (Margin) Change revenue Q1/16 vs. Q1/15 Peer 1 Construction division Op. Profit: 1 Mio.$ (Q1/15: -4 Mio.$) (margin: 0.9%) 17% Wacker Neuson EBIT: -45% (margin: 5.5%) Peer 2 Construction division Op. Income: -3% (margin: 2.8%) -2% -2% Peer 3 (Constr./Agri.) Not disclosing -3% Peer 4 Construction division Adj. Op. Profit: +28% (margin: 4.3%) -5% Peer 5 Construction division Op. Profit: -9% (margin: 12.0%) -8% Peer 6 Construction division 1 Op. Profit: +17% (margin: 10.4%) Peer 7 Construction division Op. profit: 14 Mio.$ (Q1/15: 0 Mio.$) (margin: 2.6%) Peer 8 Construction division 1 Op. Profit: -15% (margin: 11.2%) -12% -11% -11% Peer 9 Construction division Op. Profit: -41% (margin: 10.9%) -19% Peer 10 Tele handlers Not disclosing -43% 1 No calendar fiscal year, ending March 31; figures showing Q % -15% -10% -5% 0% 5%

35 Q1/16: Comparison of peer group agriculture divisions (global) Q1/16: Comparison of peer group agricultural divisions Company Change in Profit Q1 (Margin) Change revenue Q1/16 vs. Q1/15 Peer 11 Agriculture division Op. Income: -59% (margin: 1.2%) -8% Wacker Neuson Agr. Div. Not disclosing -11% Peer 12 Agriculture division Op. Profit: -56% (margin: 4.2%) -18% -20% -15% -10% -5% 0% 35

36 Financial calendar and IR contact Financial Calendar August 4, 2016 November 10, 2016 Publication of half-year report 2016; Analysts' Conference Call Publication of nine-month report 2016; Analysts' Conference, Frankfurt Numerous international trade fairs, roadshows and conferences IR contact Investor Relations Department Preussenstrasse 41, Munich, Germany Phone: , Fax:

37 Disclaimer Cautionary note regarding forward-looking statements The information contained in this document has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein. Certain statements contained in this document may be statements of future expectations and other forward looking statements that are based on management s current view and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. None of Wacker Neuson SE or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its content or otherwise arising in connection with this document. This document does not constitute an offer or invitation to purchase or subscribe for any securities and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. 37