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1
November 2015
Wacker Neuson SE
Agenda
Outlook
The Company
Financials
2
Product range covers customer needs
Light Equipment Compact Equipment Service
Used Machines1
Spare parts
Repair1
Maintenance1
Rental service1
Financing
Concrete Technology Soil and asphalt
compaction
Job-site preparation
Revenue distribution 2014 (Total: € 1.28bn)
Regions: Europe 71.8%; Americas 25.2%; Asia-Pacific 3%
Business segments: Light Equipment 32.4%; Compact Equipment 46.6%; Services 21%
Excavation
Material handling
1In selected countries
3
758
992
1,0921,160
1,284
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
0
200
400
600
800
1.000
1.200
1.400
2010 2011 2012 2013 2014
(Revenue in EUR million; EBIT as a %)
1 Figures as per IFRS; 2 adjusted
+10%
+31%
+6%+11%
4.8%
11.4%2
7.8%
8.2%
10.6%
+70%
Comparison of years 2010 – 20141
Focus on profitable growth
4
Strong brands and sales distribution worldwide for different industries
Brands & Financing
Industries
Construction and other
industries 64%
Agriculture 15%
Services 21%
Sales channels
1 Manufacturing for Claas and Caterpillar
Revenue distribution 2014Direct
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)
OEM1
Included in Europe Revenue
Distribution worldwide
5
International footprint
More than 50 affiliates, therefore over 30 sales affiliates and 5,200 dealers in over 12,400 sites worldwide
LE + CE: Milwaukee (USA)
LE: Northon Shores (USA)
LE: Manila (Philippines) 2007
LE: Reichertshofen (Ger)
CE: Korbach (Ger), 2007
CE: Hörsching (AT), 2012
CE: Pfullendorf (Ger), 2008
CE parts: Kragujevac (Serbia), 2009
HQ Munich (Ger), 2011
LE: Light Equipment production
CE: Compact Equipment production
6
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
NEW
NEW
NEW
NEW
New affiliates established in Latin America and Asia in 2014
Expansion of global sales network
8
Competitive landscape for Wacker Neuson Group
Fragmented market
Dominated by niche/specialized manufacturers
Not targeted by heavy equipment manufacturers
Quality rather than price
Significant barriers to market entry
Light equipment/
construction
Market structures and dynamics
Fragmented market with local manufacturersCompact equipment/
agriculture
Global competitors
Similar target groups to light equipment for the construction
industry
Specialized manufacturers
Compact and heavy equipment providers
Compact equipment/
construction
Ammann
Atlas Copco/Dynapac
Bomag
Bosch pt
Hilti
Multiquip/Mikasa
Competitors
Giant
JCB
Schaeffer
Thaler
Compact equipment
Atlas Weyhausen
Bobcat (Doosan)
Kubota
Manitou/Gehl
Takeuchi
Yanmar
Heavy equipment
Hitachi
JCB
Komatsu
Liebherr
Terex
Volvo
9
Strategic alliances
10
1 Until December 2017
1
Gold: Bi-GaLaBau Green Award
(Germany)
Gold Green Innovation
(UK)Gold (France) Gold (Poland)
Innovationspreis
Equitana
Gold: Innovationspreis
AGRA (Bulgaria)
Gold: demopark-
Innovations-Medaille
Innovationspreis
Eima 2014
Awards from third parties (selected)
11
Agenda
Outlook
The Company
Financials
12
Q3/15: Income statement
13
Q3/15As % of
revenueQ3/14
As % of
revenueChange in %1
Revenue 311.0 100.0 316.2 100.0 -1.6 (-4.4)
Gross profit 86.3 27.7 95.8 30.3 -9.9
Operating expenses2 71.8 23.1 65.0 20.6 10.5
Operating profit 14.5 4.7 30.8 9.7 -52.9
EBIT 15.5 5.0 40.1 12.7 -61.3
Net profit 8.5 2.7 26.5 8.4 -67.9
Net profit per share in € 0.12 0.38
EBITDA 32.1 10.3 55.1 17.4 -41.7
Number of employees 4,696 4,271 10.0
Income statement (extract) and number of employees
(€ million)
1 in brackets, adjusted to discount currency effects
2 without other income/expenses
Q3/15: Difficult quarter1
230,1 220,4
Q3/14 Q3/15
14
Europe2
-4% (-4%)
105,9 107,2
Q3/14 Q3/15
Light equipment3
+1% (-5%)
76,8 79,2
Q3/14 Q3/15
Americas2
+3% (-7%)
144,2 136,4
Q3/14 Q3/15
Compact equipment3
-5% (-6%)
9,3
11,4
Q3/14 Q3/15
Asia-Pacific2
+22% (+20%)
70,7 73,7
Q3/14 Q3/15
Services3
+4% (+1%)
1 In brackets: adjusted for currency effects; 2 Nominal, after cash discounts; 3 Nominal, before cash discounts
(€ million)
(€ million)
(€ million)
(€ million)
(€ million)
(€ million)
9M/15: Revenue increase
15
9M/15As % of
revenue9M/14
As % of
revenueChange in %1
Revenue 1,017.4 100.0 936.2 100.0 8.7 (4.0)
Gross profit 293.9 28.9 282.4 30.2 4.1
Operating expenses2 218.3 21.5 192.8 20.6 13.2
Operating profit 75.6 7.4 89.7 9.6 -15.7
EBIT 81.2 8.0 103.5 11.1 -21.5
Net profit 53.7 5.3 69.0 7.4 -22.2
Net profit per share in € 0.77 0.98
EBITDA 130.3 12.8 148.1 15.8 -12.0
Number of employees 4,696 4,271 10.0
Income statement (extract) and number of employees
(€ million)
1 in brackets, adjusted to discount currency effects
2 without other income/expenses
9M/15: Revenue growth by regions and divisons1
689,3 730,7
9M/2014 9M/2015
16
Europe2
+6% (+5%)
309,3 320,4
9M/2014 9M/2015
Light equipment3
+4% (-5%)
220,2254,1
9M/2014 9M/2015
Americas2
+15% (-0%)
441,4506,6
9M/2014 9M/2015
Compact equipment3
+15% (+13%)
26,6
32,6
9M/2014 9M/2015
Asia-Pacific2
+23% (+12%)
198,5 207,1
9M/2014 9M/2015
Services3
+4% (+0%)
1 In brackets: adjusted for currency effects; 2 Nominal, after cash discounts; 3 Nominal, before cash discounts
(€ million)
(€ million)
(€ million)
(€ million)
(€ million)
(€ million)
Share price development
17
in € 2011 2012 2013 2014 9M/14 9M/15
Earnings per share 1.22 0.77 0.87 1.30 0.98 0.77
Dividend payment 0.50 0.30 0.40 0.50 –
End of period 9.55 10.35 11.49 16.96 15.15 12.96
High 13.49 13.45 12.75 18.00 18.00 24.60
Low 8.35 9.06 9.24 11.49 11.73 12.60
Market capitalization (in € m) 669.8 725.9 805.6 1,189.2 1,062.6 909.0
ISIN / WK DE000WACK012 / WACK01
Reuters /
Bloomberg
WACGn.DE / WAC GR
Indices SDAX, DAXplus family, CDAX,
GEX, Classic All Shares
Share Prime All Share
Total shares 70.140.000
Shareholder
structure
63% Family; 37% Free float
(thereof management: 0.5)
1 Manitou, Haulotte, Palfinger, Caterpillar, Terex, Ramirent, Cramo, Atlas Copco, Bauer, Deutz
1
Share price performance since Jan. 1, 2015 with peak on April 27
Key figures share
Agenda
Outlook
The Company
Financials
18
0
5
10
15
20
25
30
0,0
200,0
400,0
600,0
800,0
1.000,0
1.200,0
1.400,0
1.600,0
2014 2015e
(Revenue in € billion)
Revenue and Margins 2014–2015e
1.28
+5-9%
EBIT margin
10.6%
1.35–1.40
EBIT margin
7-8%
1 Previously revenue increase by 9% to 13% (1.40 – 1.45 bn €);
EBIT margin between 9.5% and 10.5%.
Forecast 2015 (revised on Oct. 14, 20151)
19
Europe
North America
Latin America
South Africa and Sub Sahara
Asia
Australia
Agriculture
Construction
Oil & Gas
Other channels
2
Wacker Neuson Group revenue trend 2016
Extreme volatility, low visibility
2 Strong increase, but from a low base
Goal: To increase revenue to more than EUR 2 bn in medium term and boost profitability
Medium-term goal: keep on profitable growth track
20
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
Great reason for choosing Wacker Neuson Group
21
Appendix
(in € million) 2014 2013 Difference
Revenue 1,284.3 1,159.5 10.8%
Gross profit 381.3 352.7 8.1%
Operating costs1 -262.9 -259.5 1.3%
Operating costs1 as a % 20.5 22.4 -1.9 PP
EBITDA 196.3 153.4 28.0%
EBITDA margin as a % 15.3 13.2 2.1 PP
EBIT2 136.2 94.7 43.8%
EBIT margin2 as a % 10.6 8.2 2.4 PP
Net profit 91.5 61.2 49.6%
Earnings per share in € 1.30 0.87 49.6%
Employees 4,372 4,157 5.2%
1 Discounting other income/expenses
Income statement for 2014 (excerpt)
Revenue and increased profit forecasts achieved (Revenue: € 1.25-1.30 bn, EBITDA margin: 14.5-15.5%, EBIT margin: 10.0-11.0%)
2014: Increase in revenue and profit
23
2013 2014 2013 2014 2013 2014
2013 20142013 20142013 2014
(in € million) (in € million) (in € million)
(in € million)(in € million)
1 In brackets: adjusted by currency effects 2 Nominal, after cash discounts3 Nominal, before cash discounts
248.5 273.0
826.2921.7
297.2 323.7
36.1 38.9
407.2 422.3 520.0606.0
Europe2 Americas2 Asia-Pacific2
Light equipment3 Compact equipment3 Services3
+17% (+17%)(in € million)
+12% (+12%)+9% (+11%)
+8% (+11%)
+4% (+6%)+10% (+10%)
2014: Positive development in all regions and segments1
24
274284 254 279
257
329
276297 292
328316
348
22% 22%24% 23%
26%
21% 21% 22% 22%
19%21% 20%
14% 14%15% 16% 16%
14% 14% 14% 14%13% 13% 13%
2% 2% 3% 3% 3% 2% 2% 2% 2% 2% 2% 2%
6% 6% 6%5%
7%
5% 5%6%
5% 5% 5% 5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
50
100
150
200
250
300
350
400
Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14
Revenue Sales & service exp. R&D exp. General admin. exp. Operating expenses
2013: 22.4% 2014: 20.5%2012: 22.9%-0.5 PP -1.9 PP
1 Without other income/expenses
Cost-to-revenue ratio for all positions below prior-year level
1
2014: Ongoing improvement of cost structure
25
-19%
(in € million)
-61%
Trade receivables
Inventories
Trade payables
453.1
+17%
+6%
+27%
+46%2013 2014
532.2
2013 2014
21.5
55.2
2013 2014
106.8
131.1
(in € million)
2013 2014
-75.9
-12%
Depreciation/amortization
2013: € 58.6 million
2014: € 60.1 million
-85.3
Working capitalCash flow from operating
activities
Cash flow from investment
activitiesFree cash flow
Revenue: +11%
2014: Positive free cash flow despite increase in working capital
26
(in € million)(in € million)
177 179,5
936
18.9% 17.7%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
45,0%
50,0%
0
100
200
300
400
500
600
700
800
900
1.000
2013 2014
Net financial debt
Equity before minority interests(ratio)
Gearing in %
(71%)
+1.4%
(70%)
(in € million)+8.1%
1,012
1 Gearing = net financial debt / equity before minority interests
Eligibility for central bank
credit confirmed by:
Equity, net financial debt and gearing
Gearing1 reduced despite double-digit growth in revenue
2014: Equity and financial debt
27
(€ million) (as a %)
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
200
400
600
800
1000
1200
1400
2010 2011 2012 2013 2014
Average capital employed Revenue Return on capital employed (ROCE II) Weighted average cost of capital (WACC)
(70.1%)
(65.3%)
(72.7%)(74.1%)
(69.9%)
1 (ROCE II – WACC) * average capital employed = economic value added (EVA)
757.9
991.61,091.7
1,159.5
1,284.3
531.3
646.9
793.6859.4
897.1
7.9%
7.5% 7.5% 7.1%7.1%
5.2%
12.5%
7.6% 7.7%
10.8%
Positive EVA: EUR 32.4 million
ROCE II > WACC
2014: Positive economic value added (EVA)1
28
9M/15: Development of profit per region
29
EBIT-change by region 9M/15 vs. 9M/14
(€ million)
-10
10
30
50
70
90
110
EBIT 9M/14 Europe Americas Asia-Pacific Consolidation EBIT 9M/15
9M/15 vs. 9M/14 Europe Americas Asia-Pacific Total
Revenue +6% +15% +22% +9%
EBIT -11% -55% +168% -22%
EBIT Margin (9M/14)1 7.5% (9.1%) 1.1% (3.0%) 3.0% (1.9%) 8.0% (11.1%)
103.5 -11.4
-9.3+1.3 -2.9
81.2
1 EBIT Margin of regions on total external sales
9M/15: Comparison of EBIT vs. previous year
30
EBIT-Change 9M/15 vs. 9M/14
(€ million)
0
20
40
60
80
100
120
EBIT 9M/14 Revenue volume effect Revenue margin effect S,G&A Other EBIT 9M/15
103.5
24.5 -13.1
-25.5
-8.281.2
1
1 Other income & expense
Product and regional mix, sharp decline in several markets in Q3/15 (unexpected)
9M/15: Working capital development
31
243,7350,5 349,4
411,2513,8
172,6
153,5 180,8
200,5
186,8
-66,2 -63,6 -63,6 -88,6 -91,0
Sept. 30, 2011 Sept. 30, 2012 Sept. 30, 2013 Sept. 30, 2014 Sept. 30, 2015
Inventories Trade receivables Trade payables
Working Capital ratio (3M annualized revenue)
35.2% 43.3% 42.2% 41.3% 49.0%
Measures for reducing Working Capital will be noticeable in Q4/15.
(€ million)
-7%
WC: +17%
609.6
523.0
+2%
+25%
466.5440.4
350.1
Working capital 9M/11 – 9M/15
9M/15: Investments and cash flow development
4,2
-28,4
9M/14 9M/1544,6
49,1
9M/14 9M/15
-72,4-81,2
9M/14 9M/15
(€ million)
76,6
52,8
9M/14 9M/15
(€ million) (€ million)(€ million)
Cash flow from
investment activitiesDepreciation
Cash flow from
operating activitiesFree cash flow
Positive free cash flow of 14.8 million € in Q3/15 (Q3/14: 3,2 million €).
Measures to reduce inventories already implemented.
+12%
+10%
32
-31%
71
195 214 199241
871917 924
9901.046
8%
21%23%
20%
23%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
200
400
600
800
1.000
9M/11 9M/12 9M/13 9M/14 9M/15
Net financial debt Equity before minority interests Gearing as a %
9M/15: Gearing and equity
33
High equity ratio of 66%, increase of net debt by 21% due to WC increase
(€ million)
Equity, net debt and gearing 9M/11 – 9M/15
+21%
What happened in Q3/15?
Market conditions worsened in Q3/15 significantly
Agriculture business decreased sharply by 28%, crises deepened significantly (H1/15: +17%; 9M/15: +1%)
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 Q3/14
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 2014 gap of 8 m € earnings contribution vs. prev. year (net of total other income/other expenses)
34
A sum of unfavorable developments let Wacker Neuson revenues and earnings decrease in Q3/15 compared to prev. year.
Low food and commodity prices hit our business
35
Current decrease in Crude Oil- and Food price index
Source: FAO and World bank
9M and Q3/15: Comparison of peer group construction divisions
Company Change in Profit 9M Change in Profit Q3
Wacker Neuson EBIT: -22% EBIT: -61%
Peer 1 Construction division Op. profit: +5% Op. profit: +27%
Peer 2 (Constr./Agri.) Not disclosing Not disclosing
Peer 3 Construction division Op. Income: +11% Op. Income: -11%
Peer 4 Access Equipment division1 Op. Income: -19% Op. Income: -56%
Peer 5 Construction division2 EBIT: -60% EBIT: -58%
Peer 6 Construction division2 Profit: -21% Profit: -23%
Peer 7 Construction division Op. Profit: >100% Op. Profit: >100%
Peer 8 Construction division Op. Profit: -8% Op. Profit: -22%
Peer 9 Construction division2 Ordinary Income: Loss Ordinary Income: Loss
Peer 10 Construction division Op. Income: Loss Op. Income: +68%
Peer 11 Construction division Op. Profit: +3% Op. profit: -5%
36
-30%
-13%
-13%
-15%
-15%
-7%
-8%
-17%
-6%
-8%
4%
-2%
-30% -10%
Revenue and Profit (Change vs. 9M/14 and Q3/14)
1 Noncalendar fiscal year, figures show 2015 and Q4; 2 Noncalendar fiscal year, figures show H1 and Q2
-24%
-18%
-13%
-13%
-9%
-6%
-6%
-3%
-1%
2%
6%
9%
-25% -15% -5% 5%
Change revenue 9M/15 vs. 9M/14 Change revenue Q3/15 vs. Q3/14
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
Our actions to current market situation
37
Long-term goals remain unchanged and will – fostered by our strategies – contribute further growth to our Group.
-1 0 1 2 3 4 5 6
2015
2016
2017
Country
Value in
2014 in € bn
Germany 292.4
France 205.5
United Kingdom 192.5
Italy 160.5
Spain 71.7
Netherlands 64.1
Switzerland 53.3
Norway 44.2
Poland 43.1
Belgium 39.1
Austria 32.5
Sweden 32.3
Euroconstruct
Countries (EC-19) 1,340.8
(change as a %)
+1.9+2.4+2.6
Outlook for Europe – Growth in percent for 2015, 2016 and 2017
Construction industry trends in Europe
38Euroconstruct June 2015
+9.7+7.8+8.2
Financial calendar and IR contact
Financial Calendar
IR contact
Investor Relations Department
Preussenstrasse 41, 80809 Munich, Germany
Phone: +49-89-35402-713, Fax: +49-89-35402-298
November 23 – 25, 2015 German Equity Forum, Frankfurt
March 15, 2016 Publication of financial results 2015; Press Conference, Munich; Analysts' Conference Call
April, 2016 Capital Market Day on bauma, Munich
May 12, 2016 Publication of first-quarter report 2016; Analysts' Conference Call
May 31, 2016 AGM, Munich
August 4, 2016 Publication of half-year report 2016; Analysts' Conference Call
November 10, 2016 Publication of nine-month report 2016; Analysts' Conference, Frankfurt
Numerous international trade fairs, roadshows and conferences
39
DisclaimerCautionary 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