Annual General Meeting 2013 Management report Munich, May

Transcription

1 Annual General Meeting 2013 Management report Munich, May Cem Peksaglam (CEO)

2 Overview Financial year 2012 Annual General Meeting Financials Q1/13 Share bauma 2013 Strategy & Outlook 2

3 Summary 2012: In line with guidance Highlights Successful placing of Schuldschein loan in the amount of EUR 120 m (oversubscribed 2,5 times) New production in Austria, expansion of production capacity Introduction of new M-series light equipment products for Asia (Bauma 2012 Shanghai) Alliances with Caterpillar and Claas on track Changes in Executive Board Financials FY 2012 vs Guidance 2012: appr. EUR 1.1 bn revenues, 13-15% EBITDA margin Revenue growth: +10% yoy to EUR 1,092 m (record year) EBITDA -13% yoy to EUR 142 m (margin 13.0%; %) EBIT -31% (-25% adjusted 1 ) yoy to EUR 85 m (EBIT margin: 7.8%; 2011: 12.5%/adjusted: 11.4%) Growth driver Americas (+20% yoy), solid growth in Europe despite difficulties (+7% yoy) Solid financing structure, gearing end of year: 23% Higher working capital due to revenue growth, better delivery capabilities and emission regulations 1 Compared 2011 figure adjusted for reversal of impairment in the amount of EUR 10.8 million. 3

4 Executive Board and Supervisory Board Executive Board Cem Peksaglam CEO Strategy/M&A, Sales, Logistics, Service, Marketing, Investor Relations, Corporate Communication, Compliance, HR, Legal issues, Real Estate Martin Lehner CTO Purchasing, Production, Technology, Quality Management Günther C. Binder CFO Finance, Group auditing, IT Supervisory Board Hans Neunteufel (chairman) Dr. Matthias Bruse Dr. Eberhard Kollmar Kurt Helletzgruber Elvis Schwarzmair (employee representative) Hans Haßlach (employee representative) 4

5 2012: Record mark in revenue Annual comparison (revenue in million) (EBITDA margin as %) +83% % 1, % 13.0% 10.3% 4.6% 5

6 2012: Solid growth of revenues despite challenges Income statement FY 12 (extract) (in million) 2012 As % of revenue 2011 As % of revenue Change Revenue 1, % Gross profit % Sales and service expenses (160.6) (14.7) (139.5) (14.1) 15.1% R&D expenses (26.8) (2.5) (21.9) (2.2) 21.9% General administrative expenses (62.2) (5.7) (60.6) (6.1) 2.8% Operating expenses 1 (249.5) (22.9) (222.0) (22.4) 12.4% EBIT (11.4) % Net profit % Net profit per share in % EBITDA % 1 without other income/expenses 2 incl. PPA = Purchase Price Allocation on EBIT: 2012: EUR -4.0 million (2011: EUR -3.5 million), Q4/2012: EUR -0.9 million (Q4/2011: EUR -0.9 million) 3 without write-ups of brand impairment of EUR 10.8 million in

7 Strict cost control Breakdown of operating cost: (in million) +6 % (in % of revenue) % 34.0% 27.3% 22.4% 7

8 Profit 2012 was influenced by a number of factors Factors in 2012 Factors compared to 2011 Demand- and market-related effects Group increasingly felt the impact of weak demand in Europe (the Group s core market) Sales structure (product and regional mix) shifted slightly Group further increased efforts to penetrate core and new markets some of which are extremely competitive One-off effects in 2012 Relocation to new production facility, delivery delays Alignment of the cost structure with higher revenue levels and expected growth (including an increase in headcount) Increased depreciation due to higher investment over previous years The positive one-off item in 2011, whereby an impairment reversal added an extra EUR 10.8 million to profit before interest and tax (EBIT) 1 1 In 2011, an impairment test carried out on the basis of projected figures revealed that a write-up in the amount of EUR 10.8 million was required on the brand value following a comparison of the net book value of the Group s goodwill and brands with the fair market value in This write-up did not affect liquidity. 8

9 2012: Each quarterly revenue exceeded 2011 levels Revenue and EBITDA margin per quarter (Revenue in million) (EBITDA margin as %) +6.5% +29.3% +2.2% +5.7%

10 2012: Revenue growth in all regions and segments Europe 1 Americas 1 Asia-Pacific 1 (in million) +7% (in million) % (in million) +7% Light Equipment 2 Compact Equipment 2 Services 2 (in million) % (in million) % (in million) +11% after Cash Discounts 2 before Cash Discounts 10

11 2012: Balanced revenue mix Industries As % (previous year) Business segments As % (previous year) Regions As % (previous year) Construction and various industries 63 (63) Agriculture 15 (16) Services 22 (21) Light Equipment 36 (37) Compact Equipment 42 (42) Services 22 (21) Europe 71 (73) Americas 25 (23) Asia-Pacific 4 (4) Industry, business segment and regional mix give the company a high degree of stability. Agriculture, Asia Pacific and Emerging Markets with greatest potential. 11

12 2012: Growth of headcount according to increased sales excl. Serbia (jobs) +17% (+581 jobs) (jobs) +10% (+337 jobs) 3,514 4,096 3,514 3, Includes consolidation of Serbian production company as of January 1, 2012 (+245 jobs) Adjusted by consolidation effect of Serbian factory, headcount grew by 10% yoy, in line with revenue. 12

13 Ready for growth: Capex of EUR 475 million (since 2007) Total capex 1 : (in million) In 3 years: EUR 303 million in Property. Plant and equipment und intangible assets 2 Oct. 1, 2007 (Merger), capex group in Q (Wacker and Neuson Kramer) 13

14 2012: Healthy financials enhanced financial structure Equity before minority interests in m Net financial debt in m Gearing as a % Equity ratio before minority interests as a % Dec. 31, 12 Dec. 31, 11 Change vs. Dec. 31, 11 Equity ratio (before minorities) in % pp Gearing in % pp Net debt in EUR m % High equity ratio in industry, low gearing 14

15 Wacker Neuson events 2012 April: Intermat in Paris (one of 30 fairs 2012) (1) June: Wacker Neuson opens doors at three facilities (2) November: Bauma China 2012, Shanghai (3) (1) Intermat, Paris (F) (2) (2) Milwaukee (USA) (3) (4) Bauma China, Shanghai (CN) (2) (3) Reichertshofen (D) (2) Weidemann in Korbach (D) 15 (3) (3)

16 Starting production in new facility in Hörsching, September

17 Relaunch Web Page, November 2012 All-in-one internet presence over all entities Light- and Compact Equipment on one platform Simple navigation Fast access to product information Customer focus: access via sectors In 13 languages available 17

18 Overview Financial year 2012 Annual General Meeting Financials Q1/13 Share bauma 2013 Strategy & Outlook 18

19 Summary Q1/13: A weak European economy At a glance Ongoing macro-economical uncertainties and volatility in Europe Harsh winter in northern hemisphere Dragging development in the US-infrastructure sector Time lag: many customers putting off orders until bauma exhibition in April Q1/13 vs. Q1/12 Revenue dropped by 6% qoq to EUR 257 m Comparison to a strong previous quarter Q1/12 (+29% to Q1/11) Alignment of WN cost structure to higher budget revenue, activities to increase market penetration and preparation for bauma fair impacted earnings: EBITDA dropped by 36% qoq to EUR 25 m (margin: 9.7%, Q1/12: 14.2%) EBIT dropped by 58% qoq to EUR 11 m (margin: 4.3%, Q1/12: 9.6%) 19

20 Q1/13: High variations and less visibility Quarterly comparison Q1/10 Q1/13 (Revenue in m) +71% +29% +21% -6% +41% 12.2% 14.2% 9.7% 2.4% EBITDA margin in % 20

21 Q1/13: Dampened revenues in core markets (in million) Europe 1-8% Americas 1 (in million) -2% (in million) Asia-Pacific 1 +2% Q1/12 Q1/13 Q1/12 Q1/13 Q1/12 Q1/13 Light Equipment 2 Compact Equipment 2 Services 2 (in million) -8% (in million) -9% (in million) +3% Q1/12 Q1/13 1 Nominal, before Cash Discounts 2 Nominal, after Cash Discounts Q1/12 Q1/13 21 Q1/12 Q1/13

22 Q1/13: Revenue decrease and one-offs reduced margins Income statement (extract) ( million) Q1/13 As % of revenue Q1/12 As % of revenue Change in % Revenue Gross profit Sales and service expenses Research and development expenses General administrative expenses Operating expenses EBITDA EBIT Net profit Net profit per share in without other income/expenses 2 incl. PPA = Purchase Price Allocation on EBIT: Q1/13: EUR -0.9 million (Q1/12: EUR 0,9 million) 22

23 Q1/13: Development of headcount (jobs) Q1/12 Q1/13 +8% (+306 jobs) (jobs) Q4/12 Q1/13 +0,3% (+16 jobs) Q1/12 Q1/13 Q4/12 Q1/13 Cautious increase in headcount vs. 2012; stable headcount since beginning of the year. 23

24 Overview Financial year 2012 Annual General Meeting Financials Q1/13 Share bauma 2013 Strategy & Outlook 24

25 Bauma 2013 (April ) Wacker Neuson: appr m² exhibition area 25

26 Bauma 2013: visitors (record high) Impressions 26

27 Excellent media response Examples 27

28 Innovations at bauma 2013 Light equipment (examples) Compatec compaction control The new EH 100 electric demolition breaker RTx: two trench rollers in one unit 28

29 Innovations at bauma 2013 Light equipment (examples) The new external vibrator series Gasoline-driven floor saw series LTN 6LV light tower Light balloon LBS 80M 29

30 Innovations at bauma 2013 Compact equipment (example) The first series excavator by Wacker neuson with an electro-hydraulic drive Hydraulic power unit (HPU) Can be connected alternatively to the diesel engine via plug & play 803 mit dual power 30

31 Innovations at bauma 2013 Compact Equipment EZ28 vds (vertical digging system) Telematic Alternative drive systems for compact machines vls (vertical lift system) 31

32 Innovations at bauma 2013 ECO ECO = ECOlogy + ECOnomy Seal for particularly environmentally friendly and economic product solutions Commitment to the Blue Competence sustainability initiative of VDMA 32

33 New products for our customers Wacker Neuson Club & Kids Collection Target group: users, machine operators Exclusive club-benefits: Prize games Product- and company information Diverse club-events Own club-collection Emotional attention in the early age Awake enthusiasm for our sector 33

34 Wacker Neuson Sales-Team Impressions 34

35 Overview Financial year 2012 Annual General Meeting Financials Q1/13 Share bauma 2013 Strategy & Outlook 35

36 Strategy Increasing penetration in core markets (e.g. leveraging cross selling opportunities) Focus on diversification (e.g. different industries) Tap on synergies (e.g. between light and compact equipment) Expand international footprint: in the long run, revenues outside of Europe appr. 50% Further alliances Profitable growth 36

37 Diversification through target markets Energy Gardening, landscaping Maintenance Logistics Demolition Events 37 37

38 Different brands for different markets Construction industry, gardening and landscaping, municipal bodies, industrial and recycling sectors, etc. Agricultural industry

39 Introducing our umbrella brand Clear delineation between product brands and Group`s umbrella brand Umbrella brand for overarching Group communication and brand differentiation Conscious use of different typography to set apart from product brands Logo is used as unifying element across all brands Further brands (e.g. acquired through M&As) can be integrated easily and quickly 39

40 Strategic alliances Agriculture Construction industry

41 Internationalization - Emerging Markets India South Africa Brazil China Russia Turkey 41

42 Products for Emerging Markets M-Series Light Equipment: Focus on market-conform product offering The new series has been developed for China is made for local needs and robust, locally competetive meets the high quality requirements of Wacker Neuson to be distributed within other Emerging Markets in future Production Manila, Philippinen Rammer Vibratory Plate Light Tower Wacker Neuson China: Hong Kong (1997) as well as Shanghai, Peking und Shenzen (2006) Generator Pump 42

43 2013: Europe economic trends Financial problems in eurozone curb growth in 2013 Change of GDP 2013 as in % *BRICS= Brazil, Russia, India, China, South Africa, mean Source: IWF-forecast, WEO April

44 Still headroom for Wacker Neuson to grow in Europe (in million at 2011 prices) Total Construction Output in Central Europe (D-A-CH) +2.3% +1.7% +1.0% +0.1% +4.7% -2.0% +2.0% Euroconstruct December

45 US construction market Market stil behind pre-crisis level Further recovery Source: McGraw-Hill Construction, Construction and Housing Review, February 2013 McGraw-Hill Construction s (MHC): MHC starts turn up or down several months prior to movement in the Census spending data. 45

46 Outlook Forecast : double-digit revenue growth (revenue in million) (EBITDA-margin as %) 1400,0 30 cautiously optimistic Make up the revenue shortfall of Q1/13 as the year progresses 1200,0 1000,0 800, , % 1,200 >13.0% Europe stays a difficult market with high regional differences Solid development of US economy expected, especially in last two quarters High demand in Emerging Markets 600,0 16.4% 10 Strategies of profitable growth are implemented 400,0 10.3% Investments 2013: around 80 million 200,0 5 0, e 0 Affirmation of the annual forecast

47 Overview Financial year 2012 Annual General Meeting Financials Q1/13 Share bauma 2013 Strategy & Outlook 47

48 Book value above share price Peer group performance since start of year (change) Shareholder structure (As a %) 160,0 150,0 140,0 130,0 120,0 110,0 100,0 90,0 80,0 As of March 31,2013 Family 67.8 Free float 32.2 thereof management: 0.1 Key figures share in EUR Q1/13 High Low Wacker Neuson SDAX DAX Peergroup Average Book value per share (03/31/13) Peergroup: Atlas Copco, Bauer, Caterpillar, Cramo, Deutz, Haulotte, Manitou, Palfinger, Ramirent, Terex Earnings per share 0.09 ISIN DE000WACK012 Bloomberg WAC GR WKN WACK01 Indices SDAX, DAXplus family, CDAX, GEX, Classic All Shares Reuters WACGn.DE Share Prime All Share 48

49 Overview Financial year 2012 Annual General Meeting Financials Q1/13 Share bauma 2013 Strategy & Outlook 49

50 Annual General Meeting Agenda Overview TOP 1: TOP 2: Presentation of the approved Annual Financial Statements Resolution on the appropriation of the net profit for the year Distribution (in million) Payout ratio (as a %) Volume in shares (in million) Dividend payment (in ) Earnings per share (in ) TOP 3 and 4: TOP 5: Resolution to approve the actions of Executive /Supervisory Board Appointment of the auditors for the Annual and Consolidated Financial Statements for fiscal

51 Thank you for your attention.