Wacker Neuson SE. November 2015

Transcription

1 Wacker Neuson SE November 205

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 Used Machines Spare parts Material handling Repair Job-site preparation Maintenance Rental service Financing In selected countries Revenue distribution 204 (Total:.28bn) Regions: Europe 7.8%; Americas 25.2%; Asia-Pacific 3% Business segments: Light Equipment 32.4%; Compact Equipment 46.6%; Services 2% 3

4 Focus on profitable growth Comparison of years (Revenue in EUR million; EBIT as a %) % +70%,092 +6%,60 +%,284 30,0% 25,0% 20,0% % % 2 8.2% 0.6% 5,0% 0,0% % 7.8% 5,0% ,0% Figures as per IFRS; 2 adjusted 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 Included in Europe Revenue Distribution worldwide Manufacturing for Claas and Caterpillar 5 Revenue distribution 204 Construction and other industries 64% Agriculture 5% Services 2%

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), 202 CE parts: Kragujevac (Serbia), 2009 LE: Northon Shores (USA) LE + CE: Milwaukee (USA) HQ Munich (Ger), 20 LE: Manila (Philippines) 2007 More than 50 affiliates, therefore over 30 sales affiliates and 5,200 dealers in over 2,400 sites worldwide 6

7 Relocating skid steer loader production to the US > 70,000 units per year US is the largest sales market for skid steer loaders Development and production: In the region, for the region 7

8 Expansion of global sales network NEW NEW NEW NEW New affiliates established in Latin America and Asia in 204 8

9 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 9

10 Strategic alliances Until December 207 0

11 Awards from third parties (selected) Gold (France) Gold (Poland) Gold Green Innovation (UK) Gold: Bi-GaLaBau Green Award (Germany) Innovationspreis Equitana Gold: Innovationspreis AGRA (Bulgaria) Gold: demopark- Innovations-Medaille Innovationspreis Eima 204

12 Agenda The Company Outlook Financials 2

13 Q3/5: Income statement Income statement (extract) and number of employees ( million) Q3/5 As % of revenue Q3/4 As % of revenue Change in % Revenue (-4.4) Gross profit Operating expenses Operating profit EBIT Net profit Net profit per share in EBITDA Number of employees 4,696 4, in brackets, adjusted to discount currency effects 2 without other income/expenses 3

14 Q3/5: Difficult quarter Europe 2 Americas 2 Asia-Pacific 2 ( million) -4% (-4%) 230, 220,4 ( million) +3% (-7%) 76,8 79,2 ( million) 9,3 +22% (+20%),4 Q3/4 Q3/5 Q3/4 Q3/5 Q3/4 Q3/5 Light equipment 3 Compact equipment 3 Services 3 ( million) +% (-5%) 05,9 07,2 ( million) -5% (-6%) ( million) +4% (+%) 70,7 73,7 44,2 36,4 Q3/4 Q3/5 Q3/4 Q3/5 Q3/4 Q3/5 In brackets: adjusted for currency effects; 2 Nominal, after cash discounts; 3 Nominal, before cash discounts 4

15 9M/5: Revenue increase Income statement (extract) and number of employees ( million) 9M/5 As % of revenue 9M/4 As % of revenue Change in % Revenue, (4.0) Gross profit Operating expenses Operating profit EBIT Net profit Net profit per share in EBITDA Number of employees 4,696 4, in brackets, adjusted to discount currency effects 2 without other income/expenses 5

16 9M/5: Revenue growth by regions and divisons Europe 2 Americas 2 Asia-Pacific 2 ( million) 689,3 +6% (+5%) 730,7 ( million) 220,2 +5% (-0%) 254, ( million) 26,6 +23% (+2%) 32,6 9M/204 9M/205 Light equipment 3 9M/204 9M/205 Compact equipment 3 9M/204 9M/205 Services 3 ( million) +4% (-5%) 309,3 320,4 ( million) 44,4 +5% (+3%) 506,6 ( million) +4% (+0%) 98,5 207, 9M/204 9M/205 9M/204 9M/205 9M/204 9M/205 In brackets: adjusted for currency effects; 2 Nominal, after cash discounts; 3 Nominal, before cash discounts 6

17 Share price development Share price performance since Jan., 205 with peak on April 27 Manitou, Haulotte, Palfinger, Caterpillar, Terex, Ramirent, Cramo, Atlas Copco, Bauer, Deutz Key figures share in M/4 9M/5 Earnings per share Dividend payment End of period High Low Market capitalization (in m) ,89.2, ISIN / WK Reuters / Bloomberg Indices Share DE000WACK02 / WACK0 WACGn.DE / WAC GR SDAX, DAXplus family, CDAX, GEX, Classic All Shares Prime All Share Total shares Shareholder structure 63% Family; 37% Free float (thereof management: 0.5)

18 Agenda The Company Outlook Financials 8

19 Forecast 205 (revised on Oct. 4, 205 ) Revenue and Margins e Wacker Neuson Group revenue trend 206 (Revenue in billion) Europe.600,0.400,0.200, % North America Latin America South Africa and Sub Sahara.000,0 20 Asia 2 800,0 600,0 400,0 200,0 EBIT margin 0.6% EBIT margin 7-8% Australia Agriculture Construction Oil & Gas 0, e 0 Other channels Previously revenue increase by 9% to 3% ( bn ); EBIT margin between 9.5% and 0.5%. Extreme volatility, low visibility 2 Strong increase, but from a low base 9

20 Medium-term goal: keep on profitable growth track Goal: To increase revenue to more than EUR 2 bn in medium term and boost profitability 20

21 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 2

22 Appendix

23 204: Increase in revenue and profit Income statement for 204 (excerpt) (in million) Difference Revenue,284.3, % Gross profit % Operating costs % Operating costs as a % PP EBITDA % EBITDA margin as a % PP EBIT % EBIT margin 2 as a % PP Net profit % Earnings per share in % Employees 4,372 4,57 5.2% Revenue and increased profit forecasts achieved (Revenue: bn, EBITDA margin: %, EBIT margin: %) Discounting other income/expenses 23

24 204: Positive development in all regions and segments Europe 2 Americas 2 Asia-Pacific 2 (in million) (in million) (in million) +2% (+2%) +9% (+%) % (+%) Light equipment 3 Compact equipment 3 Services 3 (in million) (in million) +4% (+6%) +7% (+7%) (in million) +0% (+0%) In brackets: adjusted by currency effects 2 Nominal, after cash discounts 3 Nominal, before cash discounts 24

25 204: Ongoing improvement of cost structure Without other income/expenses Revenue Sales & service exp. R&D exp. General admin. exp. Operating expenses 202: 22.9% -0.5 PP -.9 PP 203: 22.4% 204: 20.5% % 22% 26% 24% 23% 2% 2% 22% 22% 2% 20% 9% 4% 4% 5% 6% 6% 4% 4% 4% 4% 3% 3% 3% 6% 6% 6% 7% 6% 5% 5% 5% 5% 5% 5% 5% 2% 2% 3% 3% 3% 2% 2% 2% 2% 2% 2% 2% Q/2 Q2/2 Q3/2 Q4/2 Q/3 Q2/3 Q3/3 Q4/3 Q/4 Q2/4 Q3/4 Q4/4 40% 35% 30% 25% 20% 5% 0% 5% 0% Cost-to-revenue ratio for all positions below prior-year level 25

26 204: Positive free cash flow despite increase in working capital Working capital Cash flow from operating activities Cash flow from investment activities Free cash flow (in million) (in million) (in million) (in million) Revenue: +% +7% % % -6% +27% % % Trade receivables Inventories Trade payables Depreciation/amortization 203: 58.6 million 204: 60. million 26

27 204: Equity and financial debt Equity, net financial debt and gearing (in million) (7%) +8.%,02 (70%) Net financial debt 50,0% Equity before minority interests 45,0% (ratio) 40,0% Gearing in % 35,0% ,0% % 7.7% +.4% 77 79,5 25,0% 20,0% 5,0% 0,0% Eligibility for central bank credit confirmed by: 00 5,0% ,0% Gearing = net financial debt / equity before minority interests Gearing reduced despite double-digit growth in revenue 27

28 204: Positive economic value added (EVA) ( million) (as a %) % ROCE II > WACC,59.5, (74.%) (72.7%) (65.3%) 53.3 (70.%), (69.9%) 2.5% 0.8% 7.6% 7.7% 7.9% 7.5% 7.5% 7.% 7.% 5.2% Average capital employed Revenue Return on capital employed (ROCE II) Weighted average cost of capital (WACC) Positive EVA: EUR 32.4 million 35% 30% 25% 20% 5% 0% 5% 0% (ROCE II WACC) * average capital employed = economic value added (EVA) 28

29 9M/5: Development of profit per region EBIT-change by region 9M/5 vs. 9M/4 ( million) EBIT 9M/4 Europe Americas Asia-Pacific Consolidation EBIT 9M/5 9M/5 vs. 9M/4 Europe Americas Asia-Pacific Total Revenue +6% +5% +22% +9% EBIT -% -55% +68% -22% EBIT Margin (9M/4) 7.5% (9.%).% (3.0%) 3.0% (.9%) 8.0% (.%) EBIT Margin of regions on total external sales 29

30 9M/5: Comparison of EBIT vs. previous year EBIT-Change 9M/5 vs. 9M/4 ( million) EBIT 9M/4 Revenue volume effect Revenue margin effect S,G&A Other EBIT 9M/5 Other income & expense Product and regional mix, sharp decline in several markets in Q3/5 (unexpected) 30

31 9M/5: Working capital development Working capital 9M/ 9M/5 ( million) Inventories Trade receivables Trade payables ,5 80, ,5 WC: +7% -7% ,8 72,6 243,7 350,5 349,4 4,2 +25% 53,8 Sept. 30, 20 Sept. 30, 202 Sept. 30, 203 Sept. 30, 204 Sept. 30, ,2-63,6-63,6-88,6-9,0 Working Capital ratio (3M annualized revenue) 35.2% 43.3% 42.2% 4.3% 49.0% Measures for reducing Working Capital will be noticeable in Q4/ %

32 9M/5: Investments and cash flow development ( million) Cash flow from operating activities 76,6-3% 52,8 Cash flow from investment activities ( million) 9M/4 9M/5 Depreciation Free cash flow ( million) ( million) +0% 4,2 49, 44,6 9M/4 9M/5-72,4-8,2 9M/4 9M/5-28,4 9M/4 9M/5 +2% Positive free cash flow of 4.8 million in Q3/5 (Q3/4: 3,2 million ). Measures to reduce inventories already implemented. 32

33 9M/5: Gearing and equity Equity, net debt and gearing 9M/ 9M/5 ( million) Net financial debt Equity before minority interests Gearing as a % % 35% % 23% 20% 23% 30% 25% 20% 400 5% % % 24 0% 5% 0 9M/ 9M/2 9M/3 9M/4 9M/5 0% High equity ratio of 66%, increase of net debt by 2% due to WC increase 33

34 What happened in Q3/5? Market conditions worsened in Q3/5 significantly Agriculture business decreased sharply by 28%, crises deepened significantly (H/5: +7%; 9M/5: +%) Ongoing market crises in emerging countries e.g. RUS, BRA, CHL, ZAF Lower demand in countries dependent on commodities and energy prices e.g. CAN, USA, AUS Business in mature markets developed weaker than expected e.g. FRA, AUS Less favorable product and regional mix Further impacts on profitability, especially in comparison to Q3/4 Production capacities have been adjusted to meet future demand, e.g. increase of headcounts (thereof 2/3 in factories) Margins and volumes of US export products under pressure due to stronger US dollar Negative FX effects on EBIT in emerging markets, especially in Latin America Lower FX gains compared to 204 gap of 8 m earnings contribution vs. prev. year (net of total other income/other expenses) A sum of unfavorable developments let Wacker Neuson revenues and earnings decrease in Q3/5 compared to prev. year. 34

35 Low food and commodity prices hit our business Current decrease in Crude Oil- and Food price index 35 Source: FAO and World bank

36 9M and Q3/5: Comparison of peer group construction divisions Revenue and Profit (Change vs. 9M/4 and Q3/4) Company Change in Profit 9M Change in Profit Q3 Change revenue 9M/5 vs. 9M/4 Change revenue Q3/5 vs. Q3/4 Wacker Neuson EBIT: -22% EBIT: -6% 9% -2% Peer Construction division Op. profit: +5% Op. profit: +27% 6% 4% Peer 2 (Constr./Agri.) Not disclosing Not disclosing 2% -8% Peer 3 Construction division Op. Income: +% Op. Income: -% -% -6% Peer 4 Access Equipment division Op. Income: -9% Op. Income: -56% Peer 5 Construction division 2 EBIT: -60% EBIT: -58% Peer 6 Construction division 2 Profit: -2% Profit: -23% Peer 7 Construction division Op. Profit: >00% Op. Profit: >00% Peer 8 Construction division Op. Profit: -8% Op. Profit: -22% Peer 9 Construction division 2 Ordinary Income: Loss Ordinary Income: Loss -3% -3% -3% -6% -6% -9% -7% -5% -5% -3% -8% -7% Peer 0 Construction division Op. Income: Loss Op. Income: +68% -8% -3% Peer Construction division Op. Profit: +3% Op. profit: -5% Noncalendar fiscal year, figures show 205 and Q4; 2 Noncalendar fiscal year, figures show H and Q2-24% -25% -5% -5% 5% 36-30% -30% -0%

37 Our actions to current market situation Reinforcing measures to improve bottom line Continued cost control, process optimization, leveraging synergies Savings in procurement (supported by external consultancy) Ongoing cost awareness throughout the organization, identification of further saving potentials Ongoing restructuring measures in selective affiliates Only selective hiring, where necessary (case-by-case decision) Using flexibility in staffing of factories (temporary workers), where applicable Focus on reduction of inventories Continued penetration of core markets, especially via cross-selling and focus on diversification Continued internationalization, long-term market penetration of emerging markets with localized products New technologies and innovations (e.g. electric drives, dual power, health and comfort protection) Opportunities for mergers and acquisitions growing Long-term goals remain unchanged and will fostered by our strategies contribute further growth to our Group. 37

38 Construction industry trends in Europe Outlook for Europe Growth in percent for 205, 206 and 207 Country Value in 204 in bn Germany France United Kingdom 92.5 (change as a %) Italy 60.5 Spain 7.7 Netherlands 64. Switzerland 53.3 Norway 44.2 Poland 43. Belgium Austria 32.5 Sweden 32.3 Euroconstruct Countries (EC-9) Euroconstruct June 205,

39 Financial calendar and IR contact Financial Calendar November 23 25, 205 March 5, 206 April, 206 May 2, 206 May 3, 206 August 4, 206 November 0, 206 German Equity Forum, Frankfurt Publication of financial results 205; Press Conference, Munich; Analysts' Conference Call Capital Market Day on bauma, Munich Publication of first-quarter report 206; Analysts' Conference Call AGM, Munich Publication of half-year report 206; Analysts' Conference Call Publication of nine-month report 206; Analysts' Conference, Frankfurt Numerous international trade fairs, roadshows and conferences IR contact Investor Relations Department Preussenstrasse 4, Munich, Germany Phone: , Fax:

40 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. 40