Wacker Neuson SE · Healthy financial standing provides an ideal basis for winning market shares and ensuring profitable growth 1.3 1.5 1.4 1.9 0.9 0.8 0.7 1.2 0.6 0.0 0.5 1.0 1.5

Wacker Neuson SE

August 2018

Agenda

2

H1/18

Outlook

Overview

Wacker Neuson SE, August 2018

Product range to meet the full spectrum of customer needs

3

Light Equipment Compact Equipment

1 FY 2017.2 In selected countries.

Concrete technology Compaction

Demolition Power & Lighting Pumps

Heating

Excavators

Dumpers

Telehandlers Wheel loaders

Skid SteersBackhoe-loaders

AcademyUsed machines2

Repair2 &

Maintenance2

Financing

Rental service2

e-Store2

Spare parts

Telematics

Services

52% of sales127% of sales1 21% of sales1


Target industries besides construction

4

Markets Light equipment Compact equipment

Agriculture

Renovation/rehabilitation

Development

Infrastructure (road and highway

construction, bridge construction)

Gardening and landscaping

Handling logistics/port logistics

Residential construction

Demolition

Maintenance/repairs

Industry & Recycling

Underground construction

Oil & gas/energy industry

Events

Municipalities

Target group oriented sales:

Light equipment 27%

Compact equipment 52%

Services 21%

Revenue split (2017, as %)

Business segmentsMost industries demand both light an compact equipment


Our brands and target groups

5

Construction, gardening/landscaping, energy sector etc. Agriculture, horse breeders, tree nurseries etc.


Global footprint

6

Sales by region Core markets: EMENA & NAM, further internationalization ongoing

Europe 74% Americas 23% Asia-Pacific 3%

Revenue split (2017)


5 year comparison

7

[%][€ m]

Revenue and EBIT margin 2013-2017


Agenda

8

H1/18

Outlook

Overview


Key Figures

9

Revenue yoy

+8%

EBIT yoy

+28%

Op. CF

€ -35m

FCF

€ 12m

(margin: 9.5%)

H1/18

NWC1-ratio: 34.2%

(-0.2PP yoy)

DIO2: 130 days

(+1 day yoy)

Equity ratio: 65.3%

(-0.2PP yoy)

June 30, 2018

(€ 825m)

(H1/17: € 2m)(H1/17: € 14m)

Adj. EBIT yoy

+20%

EPS

€ 1.34

(margin: 9.5%)

(H1/17: € 0.60)

1 Net working capital / annualized revenue for the quarter.2 Days inventory outstanding = (Inventory / annualized cost of sales for the quarter) * 365 days.

Revenue yoy

+7%

EBIT yoy

+18%

Op. CF

€ 6m

FCF

€ 57m

(margin: 12.1%)

Q2/18

(€ 455m)

(Q2/17: € 28m)(Q2/17: € 33m)

Adj. EBIT yoy

+13%

EPS

€ 1.13

(margin: 12.1%)

(Q2/17: € 0.47)


381

316348 339

425379 392

371

455

8.7%

6.5%5.1%

4.2%

11.0% 10.6%

7.8%6.2%

12.1%

0%

5%

10%

15%

20%

0

100

200

300

400

500

Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

Revenue and earnings

10

+6.9%

Q2/18: Revenue and EBIT grow significantly

Income statement (excerpt), H1/18

Comments on H1/18

Revenue +8.0%

Strong demand in core markets of Europe and North America,

bottlenecks on the supply side remain challenging

Currency-adjusted revenue increased 11.9%

Gross profit margin slightly above prior-year level (+0.2PP)

Increased revenue and positive development of business with flexible

rental solutions

Higher material prices, limited material availability and restructuring

efforts burden profitability

EBIT +28.2%

Strict cost control, ongoing improvements to internal processes

In the previous year, one-off effects from impairment losses on old

inventory and reorganization initiatives negatively impacted EBIT in the

amount of EUR 4.0 million

Earnings per share +123.3%

One-off earnings in the amount of € 54.8m from the sale of a real-estate

company held by the Group

Financial result € -1.8m yoy due to a rise in interest expenses

(€ 1.2m) and increased negative FX effects (€ 0.6m)

Revenue

[€ m]

[€ m] Q2/18 Q2/17 H1/18 H1/17

Revenue 454.6 425.2 825.1 763.7

Gross Profit 132.6 122.5 233.2 214.4

as a % of revenue 29.2% 28.8% 28.3% 28.1%

Op. costs incl. other income/expenses -77.4 -75.8 -155.0 -153.4

as a % of revenue -17.0% -17.8% -18.8% -20.1%

EBIT 55.2 46.7 78.2 61.0

as a % of revenue 12.1% 11.0% 9.5% 8.0%

Adj. EBIT 55.2 48.7 78.2 65.0

as a % of revenue 12.1% 11.5% 9.5% 8.5%

Income from sale of a real estate company 54.8 0.0 54.8 0.0

Profit for the period 79.5 33.4 94.1 42.7

EPS (in €) 1.13 0.47 1.34 0.60

EBIT

margin


H1/18: Strong growth in the compact equipment segment

825.1

24.1

201.8

599.2

Total H1/18

Asia-Pacific

Americas

Europe

Business development by region and business segment

11

H1/18: Growth mainly driven by Europe and North America

Revenue Europe +7.8% yoy (adj. for FX effects: +8.9%)

Strong growth, particularly in France, England, Poland, Austria and

Benelux countries

Recovery momentum continues in Southern Europe

Revenue with compact equipment for the agricultural sector +11.5%,

partnership with John Deere developing well

Problems with material availability on supply side slow down sales

Revenue Americas +9.2% yoy (adj. for FX effects: +20.9%)

Demand from rental chains remained strong in the second quarter

Strong growth in worksite technology and compact equipment

Intensified competitive pressures due to imports from the Eurozone

becoming more expensive

Bottlenecks among suppliers, increased steel prices and ongoing

restructuring measures burden profitability

Revenue Asia-Pacific +3.9% yoy (adj. for FX effects: +10.8%)

Ramp-up of production at new plant in Pinghu (near Shanghai) is

progressing, integration of light equipment is underway

Positive business developments in Australia after restructuring had been

completed

73%

24%

3%

100%

+7.8%

+9.2%

+3.9%

+8.0%

share yoy

86.7

2.0

-2.2

78.2

EBIT1

Comments on H1/18

Revenue [€ m]

825.1

159.6

450.0

230.1

Total H1/18

Services

Compact Equipment

Light Equipment 27%

54%

19%

100%

+3.0%

+11.2%

+8.1%

+8.0%

share yoy

1 EBIT for regions before consolidation.2 Revenue by business segment before cash discounts.

Revenue [€ m]2


1,057 1,067 1,093 1,102 1,083 1,103 1,115 1,124 1,171

66% 68% 69% 67% 65% 67% 69% 66% 65%

0%

20%

40%

60%

80%

100%

0

200

400

600

800

1,000

1,200

Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

258

224206

237 245

195

148

193 188

24%21% 19%

22% 23%18%

13%17% 16%

0%

10%

20%

30%

40%

50%

60%

70%

0

100

200

300

Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

Sound balance sheet structure

12

At 16%, gearing1 remains at a conservative level

Net financial debt/EBITDA at a low level due to increased profitability

Healthy financial standing provides an ideal basis for winning market

shares and ensuring profitable growth

1.3

1.5 1.4

1.9

0.90.8

0.7

1.2

0.6

0.0

0.5

1.0

1.5

2.0

Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

Net financial debt

[€ m]

Comments

Equity

[€ m]

Gearing1 further reduced yoy

Stable equity ratio

Net financial debt/EBITDA2 at low level

1 Net financial debt / equity. 2 Net financial debt/annualized EBITDA for the quarter.

Gearing1

Equity ratio

Net financial debt/

EBITDA2 [x]


12

35

19

-26

28

5146

-45

57

-60

-40

-20

0

20

40

60

Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

Supply chain challenges burden inventory and cash flow

13

Free cash flow impacted by sale of real estate company

Net working capital ratio1 stable yoy

Rise in inventory due to bottlenecks on supply side

Cash flow from operating activities: € -35.3m (H1/17: € 14.2m), primarily

due to an increase in net working capital of € +81.8m (H1/17: € +37.0m)

Rise in inventory due to bottlenecks on supply side, machines

could not be completed and shipped to customers

Increased trade receivables due to high volume of invoiced orders,

in particular during the last month of Q2/18

Free cash flow of € 11.5m (H1/17: € 1.7m) includes proceeds from the

sale of a real estate company held by the Group in the amount of € 60m

in Q2/18

445 448 443 462428 439 431

455 459

149

181

159171

129

150140

154

130

100

150

200

250

300

0

100

200

300

400

500

Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

1 Net working capital / annualized revenue for the quarter.2 (Inventory / annualized cost of sales for the quarter) * 365 days.

Comments on H1/18

593 565 569 590 586 568539

584622

39%

45%41%

44%

34%38%

34%39%

34%

0%

10%

20%

30%

40%

50%

60%

70%

0

100

200

300

400

500

600

700

Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

Free cash flow

[€ m]

Net working capital

[€ m]

Inventory

[€ m]

Net working capital

as a % of sales1

DIO2 in days


Share development

14

Our share in 20181

Key figures per share

Stable dividend policy (40 – 50% payout ratio)

1 As at July 27, 2018. 2 Peergroup: Atlas Copco, Bauer, Caterpillar, Cramo, Deutz, Haulotte, Manitou,

Palfinger, Ramirent, Terex. 3 As at August 8, 2018.

%

2

0.87

1.30

0.940.81

1.25

0.400.50 0.50 0.50

0.60

46%38%

53%62%

48%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

0

0.5

1

1.5

2

2.5

2013 2014 2015 2016 2017

EPS in € Dividend per share in € (paid out for respective year) Payout ratio

Family 63%

Free float 37%

in € H1/18 H1/17

Earnings per share 1.34 0.60

Share price end of period 21.76 21.23

Book value per share 16.70 15.43

Market capitalization (€ m) 1,526.2 1,489.1(total shares: 70,140,000)

Bank TP (€) Recom. Date

Hauck & Aufhäuser 40.00 Buy Aug 08, 18

Lampe 33.00 Buy Aug 07, 18

Metzler 32.00 Buy May 09, 18

Berenberg 31.00 Buy Aug 08, 18

Warburg 29.00 Hold Jun 26, 18

Equinet 27.20 Hold Aug 03, 18

Kepler Cheuvreux 26.00 Hold Aug 07, 18

Coverage3 Shareholder structure

-29%

60

80

100

120

Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18

Wacker Neuson SDAX DAX Peergroup2


Agenda

15

H1/18

Outlook

Overview


16

Extension of contracted dealer network for compact and light

equipment

Pro-active relationship management with key account rental

customers and construction companies

Focus on diversification of sales channels and industries

Light equipment established in new retail channels

North American market for skid steers accounts for ~70% of world market

Essential product to be attractive for dealers and rental companies

Large potential for further compact equipment sales

Expansion of plant in Wisconsin & integration of heaters and light towers

from plant in Michigan (closure of plant in 2018)

81,00089,000 91,000

0

25,000

50,000

75,000

100,000

2016 2017 2020e

Skid Steer market North America1

2016 – 2020e (units)

Roadshow Truck, Franklin Equipment.


Relocation of skid steer production to the US pays off

Skid steer as key product for North American market Development of contracted dealers in North America

1 Source: CECE, Off-Highway, 2018.

36,600

43,00045,000

0

10,000

20,000

30,000

40,000

50,000

2017 2018e 2022e

17

New plant located in Pinghu, 30 km from Shanghai city border.

Mini excavators for China and the region, production started in January

Building on local/regional presence Demand for repair and maintenance

of infrastructure is growing, especially in megacities

130,000 qm, 33,000 qm for modern production, offices and logistic facilities

Integration of light equipment production from the Philippines into Pinghu is

underway (closure of plant in 2018)


Setting the base for further growth in Asia

Successful start of production of mini excavators in Pinghu (China))

Mini excavator market China 2017 – 2022e (units)1

Excavator: EZ17.

1 Source: OHW Report, April 2018.

Strategic alliances and partnerships leverage our sales

181 Not in Japan.

2 Commonwealth of Independent States. 3 Kramer “green line” only.

Wacker Neuson produces for Caterpillar1 Kramer3 distributes via JD‘s dealer network

Wacker Neuson via Everdigm‘s network Weidemann via ISEKI‘s network Wacker Neuson via MHE‘s network

HAMM produces for Wacker Neuson

OEM (global)OEM (global1) Distribution (EMENA & CIS2)

OEM (Latin America) Distribution (Korea) Distribution (Japan) Distribution (ASEAN)

Core Markets: Europe & North America

Latin America & Asia


Randon produces for Wacker Neuson

Strategic alliance with John Deere in EMENA and CIS1

191 Commonwealth of Independent States. 2 Revenues of FY 2017 in € bn, agricultural sectors only.

3 FY ending October 31. 4 FY ending September 30. Source: Annual reports. Wacker Neuson SE, August 2018

John Deere: Market leader within agricultural machinery2

9 small and compact wheel loaders 9 telehandlers4 tele wheel

loaders

Start in EMENA & CIS1 (Region 2)

1.3

3.8

7.4

9.9

11.3

17.9

SAME Deutz-Fahr

Claas

AGCO

CNH Industrial

Kubota

John Deere

4

3

[€ bn]

Outlook for fiscal 2018

20

Guidance for fiscal 2018 confirmed

Construction: Manufacturers’ expectations have cooled slightly Ag: Business index has deteriorated from a high level

Comments

Order development further positive

Mid-year price increase of 2% on average effective since July 2018

Special risks:

Delayed deliveries (suppliers having difficulties meeting orders) and

further uncertainties caused by force majeure (flooding in Japan,

strike at sub-supplier)

Currency developments, especially EUR/USD

1,534

8.6%

5%

7%

9%

11%

13%

15%

0

500

1,000

1,500

2,000

FY 2017 FY 2018

1,650 – 1,700

9.0 – 10.0%

Source: CECE, July 2018. Source: CEMA, July 2018.

+8 – 11%Revenue

[€ m]

EBIT

margin

2012 2013 2014 2015 2016 2017

36.2

20182011


Agenda

21

Appendix


22

“Strategy 2022” and mid-term targets

“Strategy 2022” Mid-term targets 2022


Progress with “Strategy 2022”

23

ACCELERATION

EXCELLENCE

CUSTOMER CENTRICITY

FOCUS

Ongoing optimization and expansion of dealer structure in North

America

Progress with financing solutions for customers and distribution

partners

Listening to the market at “Voice of the Customer” events

Expansion of rental portfolio to include more flexible solutions tailored

to individual customer needs

Streamlined internal supply chain: Integration of logistics functions into

European production for light equipment successfully completed

Reorganization of procurement

Net working capital management: Software to manage stocks more

successfully has been rolled out in most parts of the Group

Investment in seed fund for industry 4.0 startups

Reduction in structure costs and optimization of value chain:

Integration of light equipment production from Manila

(Philippines) into plant Pinghu (China) is progressing

Integration of light equipment production from Norton Shores

(Michigan, USA) into plant Menomonee Falls (Wisconsin, USA)

is almost complete

Processes to avoid old stock have been installed

Roll-out of global Used Portal is underway

Digitalization: New telematics solution, digital maintenance and repair

services

Internationalization: Meeting demand in China with locally manufactured

excavators and light equipment

Agriculture: Partnership with John Deere is developing well

Reduction of vertical integration in production sites is underway


24

Source: Off-Highway Research, August 2017.

Most major regional equipment markets are expected to see growth

in 2018

Europe and Americas main growth drivers

Europe: strong business in the construction sector, upbeat mood

in the agricultural sector

North America: stronger revenue from skid steer loaders and

other compact equipment

Asia-Pacific: a key driver will be China

+11%

+15%

1,000,000

900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

2012 2013 2014 2015 2016 2017e 2018e 2019e 2020e 2021e

Tailwind from global markets

Construction industry: 2017–2021 machinery sales +11% Development of agricultural sector in Germany


Europe India Japan North America RestChina

Price developments for butter & milk in the EU

Source: Nilesen, Milchindustrieverband, Die Welt, 2017.

Source: German Farmer’s association, Juni 2018.

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

25

Competitive landscape for Wacker Neuson Group


26Wacker Neuson SE, August 2018

Challenges: New emission regulations for diesel engines

Engine emissions regulations – lack of harmonization driving costs and consuming resources

27

EZ17e


Leadership in alternative drive technologies

Financial calendar and contact

28

August 7, 2018 Publication of 2018 half-year report; analysts and investors call

September 24, 2018 Baader Investment Conference, Munich

September 25, 2018 Berenberg and Goldman Sachs Seventh German Corporate Conference, Munich

November 8, 2018 Publication of Q3 report; analysts and investors call

November 12, 2018 Roadshow Frankfurt/Main

November 15, 2018 HSBC Luxembourg Day, Luxembourg

November 16, 2018 Roadshow, Cologne / Düsseldorf

December 4, 2018 Berenberg European Corporate Conference, Pennyhill (UK)

December 6, 2018 Family Office Capital Day, Vienna


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.

Contact

Wacker Neuson SE

IR Contact: +49 - (0)89 - 354 02 - 427

[email protected]

www.wackerneusongroup.com

Documents

Wacker Neuson SE · Healthy financial standing provides an ideal basis for winning market shares and ensuring profitable growth 1.3 1.5 1.4 1.9 0.9 0.8 0.7 1.2 0.6 0.0 0.5 1.0 1.5