Slide 1: Financial press conference
26.03.2003 1 Financial press conference Presentation for financial analysts 27 March 2003 Rudolf Hauser, Chairman Philip Mosimann, CEO Roger Baillod, CFO
Slide 2: Financial press conference
Konzern 26.03.2003 2 Financial press conference Presentation for financial analysts 27 March 2003
Slide 3: Spotlights 2002
Group 26.03.2003 3 Spotlights 2002 • Group net sales 1481 million CHF: almost on level of previous year • Kuhn Group and Emhart Glass increased sales in local currencies by 15% and 10% respectively • Strategic and operational measures strengthen the group • Kuhn Group complements its product offer a
Slide 4: Spotlights 2002 (continued)
Group 26.03.2003 4 Spotlights 2002 (continued) • Operating result (EBITDA) 109 million CHF: decline by 11% • Operating result (EBIT) before restructuring costs 51 million CHF: decline by 27% due to • strong pressure on prices • low business volumes in some divisions • depreciation on receivables • g
Slide 5: Spotlights 2002 (continued)
Group 26.03.2003 5 Spotlights 2002 (continued) • Positive operating free cash-flow of 23 million CHF • Cash-out for acquisitions of 107 million CHF • Solid balance sheet-structure with • low net debt of 95 million CHF • low capitalized goodwill for acquisitions • good shareholder’s equity base • hig
Slide 6: Key figures
Group 26.03.2003 6 Key figures million CHF 2002 2001 Change % Incoming orders 1411.8 1442.1 -2.1 Net sales 1480.5 1488.0 -0.5 Order book 376.0 449.1 -16.3 Operating result (EBITDA) 109.1 123.1 -11.4 Operating result (EBIT) 51.4 70.6 -27.2 before restructuring costs Operating result (EBIT) 34.0 70.6
Slide 7: Net sales by divisions 2002
Group 26.03.2003 7 Net sales by divisions 2002 Laeis Bucher Emhart 3% Glass 18% Kuhn Group 39% Bucher Hydraulics 14% Bucher Foodtech Bucher 8% Auto- motive 18%
Slide 8: Net sales by geographical areas 2002
Group 26.03.2003 8 Net sales by geographical areas 2002 rest of the world Asia 5% 6% America 13% hereof Switzerland 8% Europe 76%
Slide 9: Number of employees
Group 26.03.2003 9 Number of employees 2002 2001 Change % Number of employees 5994 5762 +4.0 at year end Number of employees *) 5645 5762 -2.0 at year end Number of employees 5863 5757 +1.8 annual average *) without acquisitions
Slide 10: Personnel by countries 2002
Group 26.03.2003 10 Personnel by countries 2002 rest of the world Switzer- Sweden land 3% 7% 17% Italy 7% America 10% Germany 14% France 42%
Slide 11: Investment for the future
Group 26.03.2003 11 Investment for the future million CHF 2002 2001 Research and development 56.7 56.8 Capital expenditure 39.0 51.2
Slide 12: Results by divisions
Group 26.03.2003 12 Results by divisions 2002 2001 million CHF EBIT EBIT- EBIT EBIT- margin margin Kuhn Group 65.3 11.2% 59.0 11.2% Bucher Automotive -2.8 -1.1% 3.9 1.4% Bucher Foodtech -8.8 -7.0% -3.5 -2.5% Bucher Hydraulics 2.0 1.0% 10.4 4.6% Emhart Glass 15.7 5.7% 16.6 6.4% Laeis Bucher -21.0 -54
Slide 13: Kuhn Group: Feed and reel mixer
Divisions 26.03.2003 13 Kuhn Group: Feed and reel mixer
Slide 14: Kuhn Group: Key figures
Divisions 26.03.2003 14 Kuhn Group: Key figures million CHF 2002 2001 Change % Incoming orders 582.7 536.4 +8.6 Net sales 585.1 526.8 +11.1 Order book 189.4 193.9 -2.3 Operating result (EBITDA) 82.6 75.9 +8.8 in % of net sales 14.1 14.4 Operationg result (EBIT) 65.3 59.0 +10.7 in % of net sales 11.2
Slide 15: Kuhn Group: Net sales by geographical areas 2002
Divisions 26.03.2003 15 Kuhn Group: Net sales by geographical areas 2002 rest of the world Asia 3% 2% America 16% Europe 79%
Slide 16: Kuhn Group: Spotlights 2002
Divisions 26.03.2003 16 Kuhn Group: Spotlights 2002 • High sales increase of 11%, local currencies 15% • Expansion in North America and integration of Kuhn Knight Inc. as of December 2002 • Strengthening the worldwide leading market position with specialized agricultural machinery under one single b
Slide 17: Kuhn Group: Spotlights 2003
Divisions 26.03.2003 17 Kuhn Group: Spotlights 2003 • Possibly stagnating demand in 2003 after good market development in 2002 • Including sales of Kuhn Knight Inc., slight sales increase expected • Operating result on the level of previous year anticipated • Expansion of product offer and geographi
Slide 18: Bucher Automotive: Small compact sweeper CitySpider
Divisions 26.03.2003 18 Bucher Automotive: Small compact sweeper CitySpider
Slide 19: Bucher Automotive: Key figures
Divisions 26.03.2003 19 Bucher Automotive: Key figures million CHF 2002 2001 Change % Incoming orders 227.2 257.1 -11.6 Net sales 263.6 276.5 -4.7 Order book 46.0 75.7 -39.2 Operating result (EBITDA) 5.3 8.1 -34.6 in % of net sales 2.0 2.9 Operating result (EBIT) -2.8 3.9 n.a. in % of net sales -1.1
Slide 20: Bucher Automotive: Net sales by geographical areas 2002
Divisions 26.03.2003 20 Bucher Automotive: Net sales by geographical areas 2002 America Asia 1% 6% Europe 93%
Slide 21: Bucher Automotive: Spotlights 2002 / 2003
Divisions 26.03.2003 21 Bucher Automotive: Spotlights 2002 / 2003 • Focus on municipal vehicles with sale of Duro all-terrain vehicles as of December 2002 • Product offer expanded with spreaders of and acquisition of a 50% participation in Giletta SpA • Adjusting capacities and restructuring measure
Slide 22: Bucher Foodtech: fruit juice production plant
Divisions 26.03.2003 22 Bucher Foodtech: fruit juice production plant
Slide 23: Bucher Foodtech: Key figures
Divisions 26.03.2003 23 Bucher Foodtech: Key figures million CHF 2002 2001 Change % Incoming orders 120.4 130.4 -7.7 Net sales 125.4 142.7 -12.1 Order book 22.8 27.2 -16.2 Operating result (EBITDA) -3.1 -1.1 n.a. in % of net sales -2.5 6.6 Operating result (EBIT) -8.8 -3.5 n.a. in % of net sales -7.
Slide 24: Bucher Foodtech: Net sales by geographical areas 2002
Divisions 26.03.2003 24 Bucher Foodtech: Net sales by geographical areas 2002 rest of the world Asia 5% 8% America 9% Europe 78%
Slide 25: Bucher Foodtech: Spotlights 2002 / 2003
Divisions 26.03.2003 25 Bucher Foodtech: Spotlights 2002 / 2003 • Demand for large wine production plants declining – sales of fruit juice production plants dropped significantly • Integration of new activities with grape reception and reverse osmosis • Delayed market introduction of Zéolith drying
Slide 26: Bucher Hydraulics: Hydraulic component of highest precision
Divisions 26.03.2003 26 Bucher Hydraulics: Hydraulic component of highest precision
Slide 27: Bucher Hydraulics: Key figures
Divisions 26.03.2003 27 Bucher Hydraulics: Key figures million CHF 2002 2001 Change % Incoming orders 199.9 204.5 -2.2 Net sales 204.6 226.8 -9.8 Order book 33.5 37.3 -10.2 Operating (EBITDA) 12.7 20.7 -38.6 in % of net sales 6.2 9.1 Operating (EBIT) 2.0 10.4 -80.8 in % of net sales 1.0 4.6 Number o
Slide 28: Bucher Hydraulics: Net sales by geographical areas 2002
Divisions 26.03.2003 28 Bucher Hydraulics: Net sales by geographical areas 2002 rest of the America world 7% 1% Asia 8% Europe 84%
Slide 29: Bucher Hydraulics: Spotlights 2002 / 2003
Divisions 26.03.2003 29 Bucher Hydraulics: Spotlights 2002 / 2003 • Market position maintained despite partly declining markets of customers • Customers reducing stocks further reduced business volumes of subcontractors • High price pressure and underutilized capacities burdened the operating result
Slide 30: Emhart Glass: Inspection machine for glass containers
Divisions 26.03.2003 30 Emhart Glass: Inspection machine for glass containers
Slide 31: Emhart Glass: Key figures
Divisions 26.03.2003 31 Emhart Glass: Key figures million CHF 2002 2001 Change % Incoming orders 249.7 270.8 -7.8 Net sales 273.6 261.1 +4.8 Order book 76.9 100.8 -23.7 Operating result (EBITDA) 21.2 21.4 -0.9 in % of net sales 7.7 8.2 Operating result (EBIT) 15.7 16.6 -5.4 in % of net sales 5.7 6.4
Slide 32: Emhart Glass: Net sales by geographical areas 2002
Divisions 26.03.2003 32 Emhart Glass: Net sales by geographical areas 2002 rest of the world 18% Asia 3% Europe 53% America 26%
Slide 33: Emhart Glass: Spotlights 2002 / 2003
Divisions 26.03.2003 33 Emhart Glass: Spotlights 2002 / 2003 • Distinct sales increase in stable market • Despite important influence of weak US-dollar, the operating result almost equaled the prior year figure • Continuing positive trend to rebuild and upgrade existing machinery • New generation of
Slide 34: Laeis Bucher: Hydraulic press for construction materials
Divisions 26.03.2003 34 Laeis Bucher: Hydraulic press for construction materials
Slide 35: Laeis Bucher: Key figures
Divisions 26.03.2003 35 Laeis Bucher: Key figures million CHF 2002 2001 Change % Incoming orders 31.9 42.9 -25.6 Net sales 38.3 66.6 -42.5 Order book 7.4 14.2 -47.9 Operating result (EBITDA) -4.8 0.1 n.a. in % of net sales -12.5 0.2 Operating result (EBIT) -21.0 -2.3 n.a. in % of net sales -54.8 -3.
Slide 36: Laeis Bucher: Net sales by geographical areas 2002
Divisions 26.03.2003 36 Laeis Bucher: Net sales by geographical areas 2002 rest of the world 7% America 6% Europe 42% Asia 45%
Slide 37: Laeis Bucher: Spotlights 2002 / 2003
Divisions 26.03.2003 37 Laeis Bucher: Spotlights 2002 / 2003 • Significant decline in sales and reduced prospects made massive restructuring program with costs of around 15 million CHF necessary • Reorientation is based on presses and kilns for the refractory- and ceramics industry with a break-even
Slide 38: Profile Bucher Industries
Group 26.03.2003 38 Profile Bucher Industries We are a technology group headquartered in Switzerland and operating in engineering and automotive industries worldwide. Our group is divided into five divisions: • Spezialized agricultural machinery (Kuhn Group) • Municipal vehicles (Bucher Automotive)
Slide 39: Profile Bucher Industries (continued)
Group 26.03.2003 39 Profile Bucher Industries (continued) We aim for profitable growth, global market leader positions, and long-term partnerships with our customers, employees and shareholders. We enhance our customers‘ success offering continuous product innovation and a high service grade. We con
Slide 40: Five core businesses
Group 26.03.2003 40 Five core businesses Specialized agricultural engineering: Kuhn Group Municipal vehicles: Bucher Automotive Wine and fruit juice production plants: Bucher Foodtech Hydraulic components: Bucher Hydraulics Container glass production plants: Emhart Glass
Slide 41: Corporate goals Bucher Industries
Group 27.03.2003 41 Corporate goals Bucher Industries Mid-term goals of the group: 2002 2001 2000 • Operating result 12% 7.4 8.3 10.5 (EBITDA) margin • Operating result 8% 3.5 4.7 6.8 (EBIT) margin • Return on net oper- 14% 2.5 9.6 13.7 ating assets (RONOA) • Increase in profitability • Internal and
Slide 42: Prospects of the group for 2003
Group 26.03.2003 42 Prospects of the group for 2003 • No quick change of weak economy expected • World political events and unpredictable exchange rate fluctuations make a forecast difficult • At the earliest recovery of demand expected in the 2nd semester • Sufficient utilization of reduced capacit
Slide 43: Impacts on net sales 2002
Financial information 26.03.2003 43 Impacts on net sales 2002 2% 1% +1.7 +0.9% 0% -0.5% Currency adjusted +2.6% -1% -3.1% -2% -3% -4% Intern Acq./Dev. Currency Total
Slide 44: Consolidated income statement 2002
Financial information 26.03.2003 44 Consolidated income statement 2002 million CHF 2002 2001 Changes Operating result (EBIT) 51.4 70.6 -19.2 before restructuring costs Restructuring costs -17.4 - -17.4 Operating result (EBIT) 34.0 70.6 -36.6 Financial result -13.0 5.4 -18.4 Result before taxes 21.0
Slide 45: Restructuring costs 2002
Financial information 26.03.2003 45 Restructuring costs 2002 million CHF Bucher Automotive 2.7 Laeis Bucher 14.7 Total 17.4 In 2002 incurred costs 9.6 Residual provisions as per 31.12.02 7.8 Annual savings as of summer 2003 ca. 11.0
Slide 46: Financial result 2002
Financial information 26.03.2003 46 Financial result 2002 million CHF 2002 2001 +/- Net interests -11.5 -9.8 -1.7 Security results 5.4 21.6 -16.2 Currency impact + other net -6.9 -6.4 -0.5 Financial result -13.0 5.4 -18.4
Slide 47: Income taxes
Financial information 26.03.2003 47 Income taxes million CHF 2002 2001 +/- Result before taxes 21.0 76.0 -55.0 Income taxes 28.2 27.7 +0.5 Effective tax rate 134.3% 36.4% Weighted standard tax rate with normal profit 35% 35%
Slide 48: Free cash flow
Financial information 26.03.2003 48 Free cash flow million CHF 2002 2001 Change Cash flow from: - Operating activities 59.6 81.5 -21.9 - Operational investing activity -36.9 -44.7 +7.8 Operational free cash flow 22.7 36.8 -14.1 - Acquisitions -106.8 -2.3 -104.5 Free cash flow -84.1 34.5 -118.6 - Oth
Slide 49: Operational free cash flow
Financial information 26.03.2003 49 Operational free cash flow mill. CHF 120 100 68.9 80 59.7 60 36.8 40 22.7 20 0 -20 -27.5 -40 1998 1999 2000 2001 2002
Slide 50: Net liquidity
Financial information 26.03.2003 50 Net liquidity 31.12. 30.06. 31.12. million CHF 2002 2002 2001 Liquid funds 440.6 304.8 329.7 Financial assets - 160.9 158.6 Financial liabilities -535.6 -454.9 -414.9 Net liquidity -95.0 10.8 73.4 p.m. acquisitions -106.8
Slide 51: Provisions
Financial information 26.03.2003 51 Provisions 31.12. 31.12. +/- million CHF 2002 2001 Social security liabilities 22.5 23.2 -0.7 Guarantee commitments 31.7 34.0 -2.3 Taxes 28.9 36.7 -7.8 Litigations 26.1 32.0 -5.9 Other provisions 20.5 12.8 +7.7 Total provisions 129.7 138.7 -9.0
Slide 52: Shareholders' equity and total assets
Financial information 26.03.2003 52 Shareholders’ equity and total assets million CHF 1600 1800 1544 1509 1542 1456 1600 1400 1200 1000 800 600 400 521 405 459 488 435 200 26.2% 31.5% 32.4% 33.8% 27.2% 0 1998 1999 2000 2001 2002 Shareholders' equity Total assets
Slide 53: Equity statement 2002
Financial information 26.03.2003 53 Equity statement 2002 million CHF Shareholders’ equity Position as of 31.12.2002 521.0 Inclusion of Bucher Beteiligungs- -26.5 Stiftung / Change in treasury shares Par value reimbursement -17.5 Change in currency conversion reserves -27.4 Change in fair value of f
Slide 54: Shareholders' equity / Intangible assets
Financial information 26.03.2003 54 Shareholders‘ equity / Intangible assets mill. CHF 600 521.0 488.3 435.4 400 200 90.6 64.4 55.8 57.8 22.9 17.4 0 2000 2001 2002 Shareholders' equity In tangible assets thereo f goodwil
Slide 55: Shareholders' equity and market capitalisation
Financial information 26.03.2003 55 Shareholders‘ equity and market capitalisation million CHF 600 400 200 0 Dec. 1998 Dec. 1999 Dec. 2000 Dec. 2001 Dec. 2002 Mar. 2003 Shareholders' equity Market capitalisation
Slide 56: Distributions
Financial information 26.03.2003 56 Distributions million CHF 20 15 10 5 0 1998 1999 2000 2001 2002 Dividend Par value reimbursement
Slide 57: Data per bearer share
Financial information 26.03.2003 57 Data per bearer share 31.12. 31.12. in CHF 2002 2001 - Share price 132 242 - Earnings -4 23 - Shareholders’ equity 206 247 - Dividend / Par value reimbursement 5* 9 *Proposal of Board of Directors
Slide 58: Key figures per bearer share
Financial information 26.03.2003 58 Key figures per bearer share 21.3. 31.12. 31.12. 2003 2002 2001 - Share price (in CHF) 115 132 242 - Price/Earnings ratio n.a. n.a. 10.3 - Price/EBIT ratio 7.2 8.3 7.3 - Price/Book ratio 0.56 0.64 0.98 - EV/EBITDA 3.7 4.1 3.6 - Dividend yield 4.3%* 3.8% 3.7% *Prop
Slide 59: Financial key figures
Financial information 26.03.2003 59 Financial key figures Results 2002 2001 Equity ratio 27.2% 33.8% Cash flow from operating activities million CHF 59.6 81.5 Operational free cash flow million CHF 22.7 36.8 Net liquidity million CHF -95.0 73.4 Gearing 22% -14% Repayment term of net interest bearing