Wacker Neuson Se · XETR:WAC

Wacker Neuson — Shareholder Meeting (May 2011)

50 slides from Wacker Neuson's shareholder meeting presentation, May 26, 2011

  1. Slide 1: 2011 Annual General Meeting – Management Report

    2011 Annual General Meeting – Management Report Munich, May 26, 2011 Richard Mayer (Spokesperson of the Executive Board) – Günther C. Binder (CFO) Reference (apr02) 1

  2. Slide 2: Overview

    Overview Business Performance Business Model & Strategy Holding 2010 Financials Share Q1 2011 Financials Big hit among customers - Wacker Neuson presents itself as a merged Outlook company for the first time at bauma 2010 (Munich, Germany) Reference (apr02) 2

  3. Slide 3: Strong performance: Q4 2010 exceeds Q4 2008

    Strong performance: Q4 2010 exceeds Q4 2008 Recovery remains strong € million -16% -8% -34% +11% 250 +31% +32% +34% 200 +9% 150 100 50 0 Q1 Q2 Q3 Q4 2010 vs. 2008 2007 2008 2009 2010 2010 vs. 2009 Reference (apr02) 3

  4. Slide 4: Quick turnaround in 2010 – exceeding own forecast

    Quick turnaround in 2010 – exceeding own forecast Multi-year comparison 2004 – 20101 € million 979.53 Merger 870.3 +27% Acquisition 742.12 Ground Heaters 757.9 Acquisition Weidemann 619.3 597.0 503.2 411.2 2004 2005 2006 2007 2008 2009 2010 1 Figures according to IFRS, 2 Neuson Kramer only included

  5. Slide 5: Benefit from high R&D expenses in upswing

    Benefit from high R&D expenses in upswing R&D expenses and ratio 2007 – 2010 € million As a % 30 4 3,5 25 3 20 2,5 15 2 1,5 10 1 5 0,5 0 0 2007 2008 2009 2010 R&D expenses R&D expenses/Revenue 5 Reference (apr02)

  6. Slide 6: 2010 innovations (selection of product highlights from 2010)

    2010 innovations (selection of product highlights from 2010) Reference (apr02) 6

  7. Slide 7: Encouraging innovation: Hermann Wacker 2010 Innovation Prize

    Encouraging innovation: Hermann Wacker 2010 Innovation Prize > 1st place – Telescopic handler Weidemann T4512 Kramer Allrad 1245 2nd place – EH 25 World’s most powerful, lightest and most ergonomic electronic breaker 3rd place (I) Parametric plate model for multibody simulations MKS 3rd place (II) –

  8. Slide 8: Powerful customer proposition – full lineup of equipment & services

    Powerful customer proposition – full lineup of equipment & services Light equipment Compact equipment Services Concrete technology Soil and asphalt Wheel loaders compaction (articulated steering) Rental in Central and Eastern Europe Skid-steer loaders Wheel loaders Track excavators (all-wheel steeri

  9. Slide 9: Wacker Neuson USA

    Wacker Neuson USA Wacker Neuson at “ConExpo” fair in Las Vegas in March 2011: visitors were impressed by broad portfolio and latest innovations Reference (apr02) 9

  10. Slide 10: Wacker Neuson US light equipment: R&D, production and logistics sites

    Wacker Neuson US light equipment: R&D, production and logistics sites Germantown (logistics center) Norton Shores (production) Menomonee Falls (headquarters, production, R&D) Reference (apr02) 10

  11. Slide 11: Summary: Wacker Neuson future growth in the Americas

    Summary: Wacker Neuson future growth in the Americas  Long company history → strong brand name  Established distribution network  Market recovery and rental fleet replacements  New demand from non-traditional markets  Energy, Utilities, Industrial  Using broad product and knowledge focus / key

  12. Slide 12: Global launch of compact equipment continued

    Global launch of compact equipment continued May 2011 (focus on Americas) To be observed Reference (apr02) 12

  13. Slide 13: Expanding capacity to meet rising demand (Austria)

    Expanding capacity to meet rising demand (Austria) Today: Linz-Leonding (Austria) 2012: Hörsching (Austria) Capacity will be  Mini excavators  Mini excavators doubled  Skid-steer loaders  Skid-steer loaders  Track dumpers  Track and wheel dumpers Capacity limit reached before Construction star

  14. Slide 14: Overview

    Overview Business Performance Business Model & Strategy Holding 2010 Financials Share Q1 2011 Financials Executive Board in October 2010, on the 3-year anniversary of the merger Outlook Reference (apr02) 14

  15. Slide 15: Strategic guiding frames

    Strategies embedded in corporate values Value profile Guiding frame Goals Culture / values / … Strategy Shareholder structure → vision/targets Market and competitive strategy for each SBU1 What and where (not)? Markets Products/ What we want to achieve (segments, services Com-  Strategic business u

  16. Slide 16: Value profile – corporate culture inspired by family philosophy

    Value profile – corporate culture inspired by family philosophy Brand values “WHAT we want to achieve”  Values that guide our business success and inspire our daily dealings within and beyond company walls  Daily dealings inspired by the values typical of Innovation Quality a mid-sized family-owne

  17. Slide 17: Strategic goals for 2015

    Strategic goals for 2015 Market penetration,  Establish a market share we can defend selling power  Become one of the market’s top players  Maintain ongoing innovation Innovation  Sustain and expand development capabilities Strategy  Concentrate on strategic business units for Greater focus  D

  18. Slide 18: Focusing on core markets and megatrends

    Focusing on core markets and megatrends Americas Europe Asia  Use and expand existing  Defend and expand  Focus our Asia-Pacific sales channels leadership position strategy on China and Australia  Execute active go-to-  Focus on core market strategy for light competencies  In China: target exi

  19. Slide 19: Overview

    Overview Business Performance Business Model & Strategy Holding 2010 Financials Share Q1 2011 Financials Outlook Research and Development Center and company headquarters in Munich, Germany Reference (apr02) 19

  20. Slide 20: Former structure

    Former structure  Leadership and organizational structure are not uniform: Holding structures already in place within Wacker Neuson SE the Group but the German company (parent company) still organized as a parent company  More difficult to compare individual units 100%  New strategy kicks off a c

  21. Slide 21: New holding structure

    New holding structure Group Executive Board Wacker Neuson SE Centralized, Group-wide functions (Group Controlling, Group Accounting, Treasury, Legal, Internal Audit, Real Estate, Investor Relations) 100% Operating companies (operations dropped down into separate legal entities) … Production (over 30

  22. Slide 22: Reorganization in line with our strategy

    Reorganization in line with our strategy  Create a clear, uniform leadership and organizational structure that is transparent across the Group  Improve transparency without increasing administrative costs  Boost employee motivation/sense of identification - increased focus on innovation (of produ

  23. Slide 23: Overview

    Overview Business Performance Business Model & Strategy Holding 2010 Financials Share Q1 2011 Financials Wacker Neuson: Outlook EDGE Innovation Award 2010 for Vertical Digging System (VDS) Reference (apr02) 23

  24. Slide 24: Gearing down to just 1.7 % – Group is virtually debt-free

    Gearing down to just 1.7 % – Group is virtually debt-free Finances and assets in strong position 2005 – 2010 950 € million 95 As a % 850 750 75 650 550 55 450 350 35 250 150 15 50 -50 2005 2006 2007 2008 2009 2010 -5 Net debt Equity before minorities Gearing Equity ratio (before minorities) Referenc

  25. Slide 25: Key figures: 2010 exceeds forecast

    Key figures: 2010 exceeds forecast 4-year comparison € million 2010 2009 2008 2007 pro forma4 Revenue 757.9 597.0 870.3 979.5 Gross profit margin 33.1% 30.8% 33.7% 35.4% SG&A (before o. income/expenses) of revenue1 (218.4) (203.3) (235.0) (240.8) SG&A (before o. income/expenses) of revenue1 (28.8%)

  26. Slide 26: Revenue up in all segments

    Revenue up in all segments Revenue Europe Revenue Americas Revenue Asia € million € million € million +20.0% +63.0% 558.6 168.1 465.7 103.1 +10.7% 28.2 31.2 2009 2010 2009 2010 2009 2010 Revenue light equipment Revenue compact equipment Revenue services € million € million € million +38.9% 296.6 +33

  27. Slide 27: Revenue by region and business segment

    Revenue by region and business segment Regions Business segments1 As a % (previous year) As a % (previous year) Europe Light equipment 73.7 (78.0) 38.8 (35.5) Compact equipment Americas 36.0 (34.1) 22.2 (17.3) Agriculture Asia 12.4 (13.6) 4.1 (4.7) Services 25.2 (30.4) 1 Consolidated sales before di

  28. Slide 28: Emerging markets gaining importance

    Emerging markets1 gaining importance Increased ratios: revenues in EM/BRIC as a percentage of Group revenue Revenue in € million As a % of Group revenue 160 25 140 20 120 +38% 2010 EM: 15% 100 of total 15 revenues 80 10 60 40 2010 BRIC: 5% 5 of total 20 revenue 0 0 2007 2008 2009 2010 Revenue EM Rev

  29. Slide 29: Comfortable liquidity situation despite increased capex

    Comfortable liquidity situation despite increased capex Change in cash and cash equivalents 2010 96.3 -51.4 € million 44.9 -85.2 85.0 -10.3 2.2 36.6 24.9 Net debt position Dec. 31,10 Net cash Cash and cash Cash flow Working Cash flow Cash flow Cash flow Effect of Cash and cash position equivalents f

  30. Slide 30: Capex and cash flow development

    Capex and cash flow development Capital expenditure1 2009 € million  Cut in investments by 50% in 2009 vs. 2008 160  Increase in operative cash flow 2009 due 140 to reduction in working capital 120 2010 100  R&D center/Headquarters in Munich; 80 purchase of land and preparation for new facility i

  31. Slide 31: Overview

    Overview Business Performance Business Model & Strategy Holding 2010 Financials Share Q1 2011 Financials 2011: Four iF awards for compact equipment Outlook Reference (apr02) 31

  32. Slide 32: 2010: Share is up 53%; market capitalization up EUR 336.7 m

    2010: Share is up 53%; market capitalization up EUR 336.7 m Share outperforms indices Share performance compared with peers Share indicators in € 2010 2009 High 13.20 9.51 ISIN DE000WACK012 Low 7.63 4.31 WKN WACK01 Reuters WACGn.DE Average 10.28 6.96 Bloomberg WAC GR Year-end 13.00 8.20 Indices SDAX

  33. Slide 33: Around 70 percent of Wacker Neuson is family-owned

    Around 70 percent of Wacker Neuson is family-owned Shareholder structure1 Shareholders within free float As a % of total As a regional % of total Family shareholders2 Germany 67.5 54.4 Free float Austria 32.5 10.5 incl. Executive Board Europe (rest of Europe) 1.5 21.8 USA + others 13.3 1 Share capit

  34. Slide 34: Return to dividend payout – our proposal for 2010

    Return to dividend payout – our proposal for 2010 Dividend per share 2004 – 2010 20101 2009 2008 2007 2006 2005 2004 Total payment 11.9 0 13.33 35.07 24.3 15.6 11.1 (€ million) Distribution 50.0 - 32.0 40.0 50.1 49.8 43.2 ratio2 (as a %) Eligible shares 70.14 70.14 70.14 70.14 39.15 41.11 41.11 (in

  35. Slide 35: Overview

    Overview Business Performance Business Model & Strategy Holding 2010 Financials Share May 2011: Opening of new central office near Warsaw, Poland Q1 2011 Financials Outlook Reference (apr02) 35

  36. Slide 36: Q1 2011 summary – solid upswing proceeds

    Q1 2011 summary – solid upswing proceeds  Q1/11 vs. Q1/10  Good weather conditions → early start to construction season  Earthquake and nuclear catastrophe in Japan  Revenue up by 40.9 percent to EUR 211.8 million, EBITDA margin up to 12.2%  Optimized cost structure → high gross profit margin 

  37. Slide 37: Revenue Q1 2011 exceeds Q4 2010 (against seasonal curve)

    Revenue Q1 2011 exceeds Q4 2010 (against seasonal curve) Q1 2011: strongest quarter in over 2 years Comparison with Q4 2010 Revenue in € million EBITDA margin as a %  Revenue growth Q1 2011 to Q4 2010 by + 2.7% 300 60 Revenue  Gross profit margin 250 237,8 244,2 EBITDA margin 50 Q1 2011 (34.0%)1 >

  38. Slide 38: Delivering on promises – improvement of gross margin

    Delivering on promises – improvement of gross margin Q1 comparison 2008 – 2011 as % Delivering on promises:  “In 2011, we plan to match 50,0% 2008 revenue but exceed 2008 40,0% 34.4 % 34.0% earnings” (Annual Report 30.3% 30,0% 2010, p. 6) 23.1% 20,0%  Gross profit margin at 2008 12.9% 12.2% 8.4% l

  39. Slide 39: Strong rise in revenue and earnings (income statement, extract)

    Strong rise in revenue and earnings (income statement, extract) Income statement € million 3M/11 As % of 3M/103 As % of Change revenue revenue in % Revenue 211.8 100% 150.3 100% +40.9 % Gross profit 69.1 32.6% 42.4 28.2% +63.1 % Sales and service expenses (35.6) (16.8%) (30.9) (20.5%) +15.3% Researc

  40. Slide 40: 2011: recovery of economy drives product sales worldwide

    2011: recovery of economy drives product sales worldwide Revenue Europe Revenue Americas Revenue Asia € million € million € million +37.7% 151.4 +60.7% 53.0 110.0 +0.8% 33.0 7.4 7.4 Q1/10 Q1/11 Q1/10 Q1/11 Q1/10 Q1/11 Revenue light equipment Revenue compact equipment Revenue services € million € mil

  41. Slide 41: As a % of revenue – compact equal to light equipment

    As a % of revenue – compact equal to light equipment Regions Business segments1 As a % (previous year) As a % (previous year) Europe Light equipment 71.5 (73.2) 39.8 (39.1) Compact equipment Americas 39.6 (36.3) 25.0 (21.9) Agriculture Asia 16.0 (15.2) 3.5 (4.9) Services 20.6 (24.6) 1 Consolidated s

  42. Slide 42: Bolstered by strong financial position during upswing

    Bolstered by strong financial position during upswing Investments in fixed assets and depreciation Free and operative cash flow € million € million Free cash flow Operative cash flow Investments fixed assets Depreciation Q1/10 Q1/11 23.0 15.6 -2.3 9.6 11.0 -10.5 Q1/10 Q1/11 -27.4 -27.7 Q1 2011 Dec.

  43. Slide 43: Working capital investments impacts cash flow

    Working capital investments impacts cash flow Change in cash and cash equivalents Q1 2011 € million 17.3 36.6 17.9 26.5 -27.8 -10.5 -0.2 Net debt Net debt position position Dec. 31,10 -17.2 Mar. 31, 11 Cash and Cash flow Cash flow Cash flow Cash flow Effect of Cash and Working cash from from from fr

  44. Slide 44: Overview: Promises, achievements, recent initiatives

    Overview Promises Achievements Recent initiatives  Growing market reach – capitalizing on sales synergies  Introduction of compact class in Americas International growth and increasing market share in Europe  (incl. Africa) strategy  Alliance with Caterpillar (in addition to CLAAS)  Expansion o

  45. Slide 45: Overview

    Overview Business Performance Business Model & Strategy Holding 2010 Financials Share Q1 2011 Financials Wacker Neuson 8003 excavator (8t) Outlook Reference (apr02) 45

  46. Slide 46: Wacker Neuson’s strategy

    Wacker Neuson’s strategy 1 Launch into new 2 Alliance 3 Wider portfolio 4 Replacement markets (CE) Caterpillar (CE) for agriculture (CE) expenditures (LE)  Strategic alliance for mini Rising demand for food Greater need for innovative excavators up to 3t (20 years) Biofuels and other light equip

  47. Slide 47: New orders indicate high demand for compact equipment

    New orders indicate high demand for compact equipment Accumulated new orders Q1 2008 – Q1 2011 Units +30% +60% Q1 08 Q1 09 Q1 10 Q1 11 Order intake in construction Order intake in agriculture Reference (apr02) 47

  48. Slide 48: Outlook – improved forecast for 2011 and 2012

    Outlook – improved forecast for 2011 and 2012 FY 2012 expected to exceed pre-crisis level Revenue € million EBITDA margin as a % Financial targets 2011-2012 1200,0 30  Revenue growth 2011 to EUR 880-920 million, EBITDA > 1,000 1000,0 979.51 25 margin 2011 of 12-13 percent 880 - 920 870.3  2011 inv

  49. Slide 49: Financial calendar 2011 and IR contact

    Financial calendar 2011 and IR contact Financial calendar 2011 January 18 German Corporate Conference Cheuvreux, Frankfurt, Germany March 24 Publication of financial results 2010, press conference, Munich April 05/06 Capital Market Day, USA April 07 Roadshow New York, USA April 19 Roadshow Frankfurt

  50. Slide 50: Disclaimer

    Disclaimer This presentation contains facts and forecasts that relate to the future development of the Wacker Neuson Group and its companies. The forecasts are estimates that we have made on the basis of all information available to us at this moment in time. Should the assumptions underlying these

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