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1
June 2016
Wacker Neuson SE
Agenda
Outlook
The Company
Financials
2
Product range covers customer needs
Light Equipment Compact Equipment Service
Spare parts
Financing
Used Machines1
Repair1
Maintenance1
Rental service1
Concrete Technology Soil and asphalt
compaction
Job-site preparation
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%
Excavation
Material handling
1In selected countries
3
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
1.600
2012 2013 2014 2015 2016e
+6%1.09
(Revenue in EUR billion; EBIT as a %)
+10%+8% +2-5%
7.8% 8.2%10.6%
7.5%
+31%
Comparison of years 2012–2016e
Focus on profitable growth
4
1.161.28
1.38 1.40-1.45
7-8%
Strong brands and sales distribution worldwide for different industries
Brands & Financing
Industries
Construction and other
industries 66%
Agriculture 14%
Services 20%
Sales channels
1 Manufacturing for Claas and Caterpillar
Revenue distribution 2015Direct
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
LE: Itatiba (Brazil)
Official opening of our new assembly facility in Brazil (since April 2016)
7
Itatiba, São Paulo, Brazil
Products: mobile generators:
50-70 kilovolt-amps (kVA)
expanding to 150 kVA
Target market: Latin America
Start of production: April 2016
„In the region – for the region“
Roberto Martinez (Managing Director
Wacker Neuson Máquinas Ltda. Brazil)
and Cem Peksaglam (CEO) cutting the
ribbon at the opening ceremony.
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
8
9
„Zero Emission” – Wacker Neuson, a leader of alternative drive technologies
Alliance with HAMM AG proved successful
10
The cooperation has extended the portfolio of soil and asphalt compaction rollers.
New tandem rollers (1.8 – 4.5 t) and compactors (weighing up to 12 t)
Agenda
Outlook
The Company
Financials
11
Q1/16: Development of revenue and profitability
12
Q1/16 As % of
revenue
Q1/15 As % of
revenueChange in %1
Revenue 316.4 100.0 324.3 100.0 -2.4 (-1.3)
Gross profit 87.0 27.5 96.5 29.7 -9.8
Sales and service expenses 46.0 14.5 45.2 13.9 1.8
Research and development expenses 8.9 2.8 8.1 2.5 9.9
General administrative expenses 16.2 5.1 17.5 5.4 -7.4
Operating expenses2 71.1 22.5 70.8 21.8 0.4
EBITDA 34.0 10.7 47.4 14.6 -28.3
EBIT 17.3 5.5 31.7 9.8 -45,4
Net profit 11.1 3.5 21.3 6.6 -47.9
Net profit per share in € 0.16 0.30 -47.9
Income statement (extract) and number of employees
(€ million)
1 in brackets: adjusted to discount currency effects
2 without other income/expenses
Q1/16: Revenue growth by regions and divisons1
231,3 227,4
Q1/15 Q1/16
13
Europe2
-2% (-1%)
100,091,7
Q1/15 Q1/16
Light equipment3
-8% (-7%)
83,971,6
Q1/15 Q1/16
Americas2
-15% (-14%)
166,1 165,2
Q1/15 Q1/16
Compact equipment3
-1% (+0%)
9,1
17,4
Q1/15 Q1/16
Asia-Pacific2
+91% (+98%)
62,5 63,5
Q1/15 Q1/16
Services3
+2% (+3%)
1 In brackets: adjusted for currency effects; 2 Nominal, after cash discounts; 3 Nominal, before cash discounts
(€ million)
(€ million)
(€ million)
(€ million)
(€ million)
(€ million)
NA business weak – demand for light equipment remained subdued
Share price development
14
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%)
Share price performance since January 2016
Key figures share
in € 2011 2012 2013 2014 2015 Q1/16
Earnings per share 1.22 0.77 0.87 1.30 0.94 0.16
Dividend 0.50 0.30 0.40 0.50 0.50 –
End of period 9.55 10.35 11.49 16.96 14.23 13.98
High 13.49 13.45 12.75 18.00 24.60 15.57
Low 8.35 9.06 9.24 11.49 11.12 11.44
Book value1 12.84 13.04 13.34 14.42 15.17 15.15
Market capitalization (in € m) 669.8 725.9 805.6 1,189.2 998.1 980.6
as %
1 before minority interests
Agenda
Outlook
The Company
Financials
15
-1 0 1 2 3 4 5
2016
2017
2018
Country
Value in
2015e in € bn
Germany 293.6
United Kingdom 202.8
France 202.8
Italy 161.0
Spain 80.2
Netherlands 66.9
Switzerland 55.6
Poland 45.5
Norway 41.9
Belgium 40.0
Sweden 34.0
Austria 32.9
Euroconstruct
Countries (EC-19) 1,370.7
(change as a %)
+3.0+2.7
+2.0
Outlook for Europe – Growth in percent for 2016, 2017 and 2018
Construction industry trends in Europe
16Euroconstruct December 2015
+7.4+8.3+7.7
-1.3
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
2015 2016e
(Revenue in € billion)
Revenue and margins 2015–2016e
1.38+2% to +5%
EBIT Margin
7.5%
1.40–1.45
Forecast for 2016
17
Europe
North America
Latin America
South Africa and Sub Sahara
Asia
Australia
Agriculture
Construction
Mining
Oil & Gas
Other channels
1
Wacker Neuson Group revenue trend 2016e
Some developments offset each other, low visibility
1 Strong increase, but from a low base
Revenue growth +2% to +5%, EBIT Margin 7.0% to 8.0%
Investments of ~ 100 m €, positive free cash flow
EBIT Margin
7-8%
Goal: To increase revenue to more than EUR 2 bn in medium term and boost profitability
Medium-term goal: keep on profitable growth track
18
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
19
Appendix
2015: Development of revenue and profitability
21
2015in % of
revenue2014
in % of
revenueChange in %1
Revenue 1,375.3 100.0 1,284.3 100.0 +7.1 (+2.7)
Gross profit 384.5 28.0 381.3 29.7 +0.8
SG&A and R&D cost2 -291.3 21.2 -262.9 20.5 +10.8
Operating expenses2 93.2 6.8 118.4 9.2 -21.3
EBIT 103.6 7.5 136.2 10.6 -23.9
Net profit 66.2 4.8 91.5 7.1 -27.7
Net profit per share in € 0.94 1.30 -27.7
EBITDA 171.3 12.5 196.3 15.3 -12.7
Number of employees 4,632 4,372 +5.9
Income statement (extract) and number of employees for 2015 and Q4 2015
1 in brackets: adjusted to discount currency effects2 without other income/expenses
Q4/2015in % of
revenueQ4/2014
in % of
revenueChange in %1
357.9 100.0 348.1 100.0 +2.8 (-0.8)
90.6 25.3 98.8 28.4 -8.3
-73.0 20.4 -70.1 20.1 +4.1
17.6 4.9 28.7 8.2 -38.7
22.4 6.3 32.7 9.4 -31.5
12.4 3.5 22.5 6.5 -44.9
0.18 0.32 -44.9
41.0 11.5 48.3 13.9 -15.1
4,632 4,372 +5.9
(in € m)
90
214177 180 199
901 915936
1.0121.064
10,0%
23,4%
18,9%17,7%
18,7%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
0
200
400
600
800
1.000
2011 2012 2013 2014 2015
Net financial debt Equity before minority interests Gearing as a %
2015: Gearing and equity
22
High equity ratio of 69%, gearing
2015: Working capital development
23
2011 2012 2013 2014 2015
Inventories Trade receivables Trade payables
Working Capital ratio1
35.1% 40.9% 38.1% 38.2% 40.1%
(in € m)
+4%
WC: +8% 574.5
532.2
+23%
+12%
453.1456.8
370.5
Working capital 2011 – 2015
1 calculation: working capital reported at the closing date / annual revenue calculated on the basis of Q4
180.0
173.3
164.0147.8
158.4
474.6
424.0
333.8360.1274.5
-80.1-65.2-44.7-51.1-62.4
+23%
(in € million)
-17%
+13%
2014 2015
67.7
2014 2015
17.8
21.5
2014 2015
131.0
106.8
(in € million)
-85.3
+33%
-113.2
Depreciation/amortizationCash flow
from operating activities
Cash flow
from investment activitiesFree cash flow
2015: Comfortable liquidity situation despite high investments
24
(in € million) (in € million)
2014 2015
60.1
(€ million)
2011 2012 2013 2014 2015
Average capital employed (in % of revenue) Revenue Return on capital employed (ROCE II) Weighted average cost of capital (WACC)
(65.2%)
(72.7%)(74.1%) (69.9%)
1 (ROCE II – WACC) * average capital employed = economic value added (EVA)2 Return on equity = Profit/loss after minority interests / average equity before minority interests3 Return on assets = Profit/loss before minority interests / average balance sheet total
991.61,091.7
1,375.3
1,159.5
1,284.3
646.9
793.6859.4 897.1
7.5% 7.5% 7.1% 7.1%
12.5%
7.6% 7.7%
10.8%
ROCE II > WACC, positive EVA1: EUR 1.1 million
2015: Positive economic value added (EVA)1
25
(71.0%)976.6
7.1%
7.3%
ROE (%)2 9.0 6.1 6.6 9.4 6.4
ROA (%)3 7.0 4.3 4.6 6.7 4.4
(Revenue in € million; EBIT Margin as a %)
Q1/16: Multi-year comparison (5 years)
26
Revenue and EBIT Margin Q1 (2012–2016)
Revenue in Q1/16 more or less on par with record level Q1/15 (only -2%),
but profitability weak and unsatisfactory
9.6%
4.3%
7.6%
9.8%
5.5%
+11% -2%
31,734,0
15,5
22,4
17,3
9,8%8,9%
5,0%6,3%
5,5%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
18,0%
20,0%
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
Q1/15 Q2/15 Q3/15 Q4/15 Q1/16
EBIT EBIT margin
Q1/16: Development of profit since Q1/15
27
EBIT development Q1/15-Q1/16
(EBIT in € million; EBIT Margin as a %)
Revenue in € million 324.3 382.1 311.0 357.9 316.4
Construction and other industries
Agriculture
Services
Q1/16 Q1/15
65% 65%
15% 16%
20% 19%
Q1/16: Ag business (Weidemann, Kramer, Claas)
Q1/15 Q1/16
28
(in €m)
53.6
47.5
Continued downturn in Ag business
Q1/16 vs. Q1/15: -11%
(2015 vs. 2014: -2%)
-11%
Revenue breakdown for Q1/16 Revenues1 Q1/16 vs. Q1/15
(% of revenue)
1 Nominal, before cash discounts
Q1/16: Comparison of EBIT vs. previous year
29
1
1 Other income & expense
Earnings negatively impacted in crisis-hit emerging markets/industries, regional/product mix and FX effects.
(in € m)
0
5
10
15
20
25
30
35
EBIT Q1/15 Revenue volume effect Revenue margin effect S,G&A Other EBIT Q1/16
31.7 -2.4-7.1
-0.2 -4.7
17.3
EBIT-change Q1/16 vs. Q1/15
Q1/16: Development of profit per region
30
EBIT-change by region Q1/16 vs. Q1/15
(€ million)
0
5
10
15
20
25
30
35
40
EBIT Q1/15 Europe Americas Asia-Pacific Consolidation EBIT Q1/16
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%)
31.7 -15.2
-9.8
-1.7
+12.3 17.3
1 EBIT Margin of regions on total external sales
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
20,0
Q1/15 Q1/16-35,0
-30,0
-25,0
-20,0
-15,0
-10,0
-5,0
0,0
Q1/15 Q1/16
-25
-20
-15
-10
-05
00
Q1/15 Q1/16
-70%
(in € million)(in € million)
-20.6
Depreciation/amortizationCash flow
from operating activities
Cash flow
from investment activitiesFree cash flow
Q1/16: Comfortable liquidity situation despite high investments
31
(in € million) (in € million)
-6.1
+17%
-25.4
-29.7
-50,0
-45,0
-40,0
-35,0
-30,0
-25,0
-20,0
-15,0
-10,0
-5,0
0,0
Q1/15 Q1/16
-22%
-45.9
-35.8
+6%15.7
16.7
Q1/16: Working capital development
32
305369 344
495 464
181
191 197
227220
-73 -57 -72 -97 -85
March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015 March 31, 2016
Inventories Trade receivables Trade payables
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
(€ million)
-3%
WC: -4%
599
469
-12%
-6%
503
413
Working capital Q1/12 – Q1/16
625
149
257
185226 235
919 926950
1.065 1.062
16%
28%
19%21% 22%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
200
400
600
800
1.000
Q1/12 Q1/13 Q1/14 Q1/15 Q1/16
Net financial debt Equity before minority interests Gearing as a %
Q1/16: Gearing and equity
33
High equity ratio of 67%, increase of net debt by 4%
(€ million)
Equity, net debt and gearing Q1/12 – Q1/16
+4%
Q1/16: Comparison of peer group construction divisions
Company Change in Profit Q1 (Margin)
Peer 1 Construction division Op. Profit: 1 Mio.$ (Q1/15: -4 Mio.$) (margin: 0.9%)
Wacker Neuson EBIT: -45% (margin: 5.5%)
Peer 2 Construction division Op. Income: -3% (margin: 2.8%)
Peer 3 (Constr./Agri.) Not disclosing
Peer 4 Construction division Adj. Op. Profit: +28% (margin: 4.3%)
Peer 5 Construction division Op. Profit: -9% (margin: 12.0%)
Peer 6 Construction division1 Op. Profit: +17% (margin: 10.4%)
Peer 7 Construction division Op. profit: 14 Mio.$ (Q1/15: 0 Mio.$) (margin: 2.6%)
Peer 8 Construction division1 Op. Profit: -15% (margin: 11.2%)
Peer 9 Construction division Op. Profit: -41% (margin: 10.9%)
Peer 10 Tele handlers Not disclosing
34
-19%
-12%
-11%
-11%
-8%
-5%
-3%
-2%
-2%
-20% -15% -10% -5% 0% 5%
Change revenue Q1/16 vs. Q1/15
1 No calendar fiscal year, ending March 31; figures showing Q4.
-43%
17%
Q1/16: Comparison of peer group construction divisions
Q1/16: Comparison of peer group agriculture divisions (global)
35
Company Change in Profit Q1 (Margin)
Peer 11 Agriculture division Op. Income: -59% (margin: 1.2%)
Wacker Neuson Agr. Div. Not disclosing
Peer 12 Agriculture division Op. Profit: -56% (margin: 4.2%)-18%
-11%
-8%
-20% -15% -10% -5% 0%
Change revenue Q1/16 vs. Q1/15
Q1/16: Comparison of peer group agricultural divisions
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
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
36
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.
37