Bucher Industries Ag · SIX:BUCN
Bucher Industries — Investor Presentation (October 2009)
62 slides from Bucher Industries's investor presentation, October 2009
Slide 1: Group presentation
Group presentation Group presentation October 2009 Page 1
Slide 2: Technology group founded in 1807
Technology group founded in 1807 • Group specialised in mechanical and vehicle engineering • Strategy of technology and market leadership - product innovation - sales network and high service levels - good price/performance ratios for customers - taking advantage of industry consolidation • Markets
Slide 3: Five divisions
Five divisions Kuhn Group Bucher Municipal Bucher Process Bucher Hydraulics Emhart Glass Machinery for hay and Municipal vehicles for Machinery and equip- Custom hydraulic drive Machinery, com- forage harvesting, cleaning and removing ment for wine and fruit and control systems for ponents, systems
Slide 4: No. 1 market positions
No. 1 market positions • Kuhn Group worldwide in fodder harvesting machinery and feed mixers • Bucher Municipal in Europe in street sweepers • Bucher Process worldwide in fruit juice and wine production plants • Bucher Hydraulics in Europe in special segments of mobile hydraulics • Emhart Glass worl
Slide 5: Manufacturing sites worldwide
Manufacturing sites worldwide Group presentation October 2009 Page 5
Slide 6: Group's short- to medium-term strategy
Group’s short- to medium-term strategy • Strengthening the existing five divisions, primarily through organic growth and secondarily through selective acquisitions • Concentrating on improving operational efficiency - Weathering the downturn as best as possible - Getting ready for the next upswing -
Slide 7: Group and division earnings targets
Group and division earnings targets EBIT margin Targets 2008 2007 2006 2005 2004 Kuhn Group 11 12.4 11.6 **9.3 8.4 8.3 Bucher Municipal 8 *7.4 6.6 5.4 4.2 2.2 Bucher Process 9 12.4 10.9 7.6 5.9 4.1 Bucher Hydraulics 11 *11.3 15.1 12.6 9.9 8.6 Emhart Glass 9 8.4 7.9 7.0 5.2 6.9 Bucher Industries 9 8.
Slide 8: Group at a glance in 2008 / 2009
Group at a glance in 2008 / 2009 • Record year of 2008 after a long phase of growth - Sales doubling to CHF 2.8 billion since 2002; CAGR >14% - EBITDA margin >12%, EBIT margin 10% • Kuhn Group’s business in hay and forage harvesting machinery strengthened with sprayers and balers/bale wrappers • Buc
Slide 9: Net sales by division and region in 2008
Net sales by division and region in 2008 CHF 2 789 million Kuhn Group 39% Europe 65% Bucher Municipal 21% Switzerland 5% Bucher Hydraulics 18% Americas 17% Emhart Glass 15% Asia 8% Bucher Process 7% Other 5% Group presentation October 2009 Page 9
Slide 10: Number of employees by region in 2008
Number of employees by region in 2008 France 34% North America 14% Switzerland 13% Germany 9% United Kingdom 6% Sweden 6% Brazil 5% Italy 4% Australia 3% Asia 3% Other 3% Group presentation October 2009 Page 10
Slide 11: Key figures
Key figures CHF million 2008 2007 % change Order intake 2 792 2 704 3.2 Net sales 2 789 2 459 13.4 Order book 843 871 -3.2 Operating profit (EBITDA) 342 286 19.5 as % of net sales 12.2% 11.6% Operating profit (EBIT) before impairment 276 229 20.4 as % of net sales 9.9% 9.3% Operating profit (EBIT) 2
Slide 12: Investing in the future
Investing in the future CHF million 2008 2007 % change Development expenses 78 71 9.8 Capital expenditure on property, plant and equipment 131 131 -0.2 Acquisitions 152 30 Group presentation October 2009 Page 12
Slide 13: Division results
Division results 2008 2007 CHF million EBIT EBIT margin EBIT EBIT margin Kuhn Group 137 12.4% 108 11.6% Bucher Municipal* 43 7.4% 38 6.6% 37 6.6% Bucher Process 24 12.4% 19 10.9% Bucher Hydraulics* 56 11.3% 31 6.3% 59 15.1% Emhart Glass 35 8.4% 33 7.9% Other/consolidation -19 -27 Bucher Industries*
Slide 14: Net sales and number of employees
Net sales and number of employees CHF m Empl. 3000 2789 9000 2500 8176 7500 2000 6000 1500 4500 1000 3000 500 1500 0 0 2004 2005 2006 2007 2008 Net sales Number of employees Group presentation October 2009 Page 14
Slide 15: Net sales and results
Net sales and results CHF m CHF m 3000 2789 600 2459 2500 500 2087 1948 2000 1641 342 400 286 1500 300 229 237 185 1000 166 200 148 118 124 91 171 145 500 100 86 96 54 0 0 2004 2005 2006 2007 2008 Net sales EBITDA EBIT Profit for the year Group presentation October 2009 Page 15
Slide 16: Net operating assets and RONOA
Net operating assets (NOA) and return on net operating assets after tax (RONOA) CHF m % 1000 40 900 35 891 800 30 700 600 687 25 605 500 567 23.8 20 503 400 18.5 15 300 14.8 14.3 12.1 10 200 100 5 0 0 2004 2005 2006 2007 2008 Net operating assets Return on net operating assets Group presentation Oct
Slide 17: Shareholders' equity and return on equity (ROE)
Shareholders‘ equity and return on equity (ROE) CHF m % 1000 25 21.4 800 846 20 873 14.8 725 600 16.9 15 525 639 14.0 400 10 10.7 200 5 0 0 2004 2005 2006 2007 2008 Shareholders' equity Return on equity Group presentation October 2009 Page 17
Slide 18: Operating free cash flow
Operating free cash flow CHF m 120 120 100 101 80 60 62 40 43 20 0 -15 -20 -40 2004 2005 2006 2007 2008 Group presentation October 2009 Page 18
Slide 19: Net liquidity and free cash flow
Net liquidity and free cash flow Net liquidity Free cash flow CHF m CHF m 200 200 150 121 173 150 164 100 100 92 104 50 69 1 50 0 0 2 -50 -50 -111 -100 -100 -150 -150 -200 -200 -223 -250 -250 2004 2005 2006 2007 2008 Net liquidity Free cash flow Group presentation October 2009 Page 19
Slide 20: Total assets and Shareholders' equity
Total assets and Shareholders’ equity CHF m 2500 2130 2068 1840 2000 1675 1494 1500 873 846 1000 639 725 525 500 35.2% 38.1% 39.4% 41.0% 40.9% 0 2004 2005 2006 2007 2008 Total assets Shareholders' equity Group presentation October 2009 Page 20
Slide 21: Shareholders' equity / Intangible assets
Shareholders’ equity / Intangible assets CHF m 1000 873 846 725 800 639 525 600 400 131 200 79 47 62 45 79 61 89 49 25 0 2004 2005 2006 2007 2008 Shareholders' equity Intangible assets thereof goodwill Group presentation October 2009 Page 21
Slide 22: Group outlook for 2009
Group outlook for 2009 • Continuing uncertainty surrounding forecasts and currencies • Eastern Europe, Russia and Brazil hard hit, along with the main sales markets of Western Europe and the USA • Customers facing problems financing projects, leading to delays, downsizing and cancellations • Perform
Slide 23: Kuhn Group: Specialised agricultural machinery
Kuhn Group Specialised agricultural machinery Ploughing Tillage Seeding Fertilisation Manure spreaders Spraying Hay & forage Feed storage Bedding & feeding Landscape harvesting maintenance Group presentation October 2009 Page 23
Slide 24: Kuhn Group: Net sales and EBIT
Kuhn Group Net sales and EBIT CHF m CHF m 1200 150 1000 125 800 100 600 75 400 50 200 25 0 0 2004 2005 2006 2007 2008 Net sales EBIT Group presentation October 2009 Page 24
Slide 25: Kuhn Group: Net sales and number of employees 2008
Kuhn Group Net sales and number of employees 2008 Net sales Number of employees CHF 1 106 m 3 384 persons Europe 73% France 67% Americas 24% North America 16% Asia 2% Brasil 13% Other 1% Other 4% Group presentation October 2009 Page 25
Slide 26: Kuhn Group: Market position
Kuhn Group Market position • World’s leading manufacturer of specialised agricultural machinery under one brand • Use of several distribution networks reduces dependence and increases potential for high market share • Broad customer base and independence from large customers • Specialist in hay and
Slide 27: Kuhn Group: Complete product range under one brand
Kuhn Group Complete product range under one brand Competitors Hay and forage hedge feed tillage equipment seeders sprea- spray- trac- harvesters mowers tedders rakes balers cutters mixers driven non-driven drilling precision ders ers tors selfpropelled Kuhn Group John Deere CNH AGCO Claas Renault Kr
Slide 28: Kuhn Group: World market for agricultural machinery
Kuhn Group World market for agricultural machinery 2005 2015 Total USD 42 billion Total USD 45 billion Western Europe 40% Western Europe 32% North America 30% North America 27% Eastern Europe 9% Eastern Europe 12% South America 8% South America 12% China 3% China 5% Other 10% Other 12% Group present
Slide 29: Kuhn Group: 2008 / 2009 highlights
Kuhn Group 2008 / 2009 highlights • Very good performance in 2008 - CHF 1.1 billion in sales, up 26% in local currency - Order intake up 24% in local currency despite the crisis in the fourth quarter - High profitability: EBIT of CHF 137 million, up 27%; EBIT margin of 12.4% • Product portfolio sele
Slide 30: Kuhn Group: Outlook for 2009
Kuhn Group Outlook for 2009 • Weak economic conditions and sluggish lending - Affecting all regions, in particular Eastern Europe, Russia and North America - Milk and meat prices likely to have bottomed out at a low level - Reduced production in the second half due to destocking by dealers • Lower p
Slide 31: Bucher Municipal: Sweepers and winter maintenance equipment
Bucher Municipal Sweepers and winter maintenance equipment Compact sweepers Truck mounted sweepers Spreaders Snow blowers Refuse collection vehicles Group presentation October 2009 Page 31
Slide 32: Bucher Municipal: Net sales and EBIT
Bucher Municipal Net sales and EBIT CHFm CHFm 600 60 500 50 400 40 300 30 200 20 100 10 0 0 2004 2005 2006 2007 2008 * Net sales EBIT * before impairment charges Group presentation October 2009 Page 32
Slide 33: Bucher Municipal: Net sales and number of employees 2008
Bucher Municipal Net sales and number of employees 2008 Net sales Number of employees CHF 579 m 1 569 persons Europe 62% UK 30% Switzerland 16% Switzerland 22% Australia 13% Australia 18% Asia 6% Germany 11% Italy 6% Other 3% Latvia 5% Denmark 5% Other 3% Group presentation October 2009 Page 33
Slide 34: Bucher Municipal: Market position
Bucher Municipal Market position • Europe’s leading manufacturer of compact and truck mounted sweepers, large snow removal equipment for roads and airports • Market share in Europe: compact sweepers 35% truck-mounted sweepers 60% • Complete product line for municipal applications • Main competitors:
Slide 35: Bucher Municipal: Complete product range
Bucher Municipal Complete product range Competitors Sweepers Airport Spreaders 1m3 2m3 4m3 5m3 6m3 8m3 SB SS RWS mounted towed Bucher (CH) Johnston (UK) Schmidt (DE) Boschung (CH) Hako (DE) Aebi MFH (CH) Faun (DE) Elgin (USA) Scarab (UK) Epoke (DK) Acometis (FR) SB = snow blowers SS = snow sweepers
Slide 36: Bucher Municipal: 2008 / 2009 highlights
Bucher Municipal 2008 / 2009 highlights • Good performance at record levels in 2008 - High sales of CHF 579 million and lower order intake of CHF 528 million - Operating EBIT margin of 7.4%, outpacing the industry average - Good demand in Europe and Australia, along with export successes in Thailand
Slide 37: Bucher Municipal: Outlook for 2009
Bucher Municipal Outlook for 2009 • No signs of a rapid recovery in demand - No impact of government economic stimulus programmes felt so far; growing trend towards covert national protectionism - Effects of lower tax revenues in 2010 unclear - Private sweeper fleet operators remaining cautious - A
Slide 38: Bucher Process: Wine and fruit juice production equipment
Bucher Process Wine and fruit juice production equipment Destemmers Pneumatic tank presses CF filtration systems Reverse osmosis systems Mills Hydraulic presses Ultrafiltration systems Evaporators Group presentation October 2009 Page 38
Slide 39: Bucher Process: Net sales and EBIT
Bucher Process Net sales and EBIT CHF m CHF m 200 35 175 30 150 25 125 20 100 15 75 10 50 5 25 0 0 -5 2004 2005 2006 2007 2008 Net sales EBIT Group presentation October 2009 Page 39
Slide 40: Bucher Process: Net sales and number of employees 2008
Bucher Process Net sales and number of employees 2008 Net sales Number of employees CHF 195 m 533 persons Europe 68% Switzerland 3% France 68% Americas 16% Switzerland 16% Chile 6% Asia 10% Italy 4% Other 6% North America 2% Other 4% Group presentation October 2009 Page 40
Slide 41: Bucher Process: Market position
Bucher Process Market position • World market leader in fruit, berry and vegetable juice processing equipment • World market leader in wine making equipment • Market share: 35% to 50% worldwide • Development of a new business segment for municipal sludge dewatering • Main competitors: Flottweg (DE),
Slide 42: Bucher Process: Leading worldwide position
Bucher Process Leading worldwide position Wine production Competitors Reception Crushing Pressing Fermentation Filtration Filling Bucher Process Pera (FR) Diemme (IT) Velo (IT) Della/Toffola (IT) Gai (IT) Juice production Competitors Reception Milling Mash Dejuicing Pasteuri- Filtration Adsorp- Evap
Slide 43: Bucher Process: World production of wine
Bucher Process World production of wine Million hl Italy 21% 400 350 Americas 20% 295 300 284 261 265 269 270 300 France 18% 250 Spain 15% 200 Rest of Europe 10% 150 Asia 6% 100 50 Oceania 6% 0 Africa 4% prov. 2006 prov. 2007 1976-1980 1981-1985 1986-1990 1991-1995 1996-2000 2002 2003 2004 2005 Fore
Slide 44: Bucher Process: World apple production 1960-2006
Bucher Process World apple production 1960 - 2006 70 60 50 40 other 30 South America 20 Americas Asia 10 Europe 0 1960 1970 1980 1990 2000 2006 2006 juice production Juice production: approx. 70% concentrate, 20% fresh juice, 10% cider Group presentation October 2009 Page 44
Slide 45: Bucher Process: 2008 / 2009 highlights
Bucher Process 2008 / 2009 highlights • The division enjoyed a record year in 2008 - Sales of CHF 195 million and an EBIT margin of 12.4% - Solid demand for winemaking equipment in the main markets - Southern hemisphere severely hit by the onset of the financial crisis - Excellent handling of the ma
Slide 46: Bucher Process: Outlook for 2009
Bucher Process Outlook for 2009 • Expected to be a difficult year for the division - Projects delayed because of restrictive lending practices - Subsidies announced in Europe for winemaking equipment delaying capital- spending decisions for 2009, but having a positive impact from 2010 - Capital spen
Slide 47: Bucher Hydraulics: Custom drive solutions
Bucher Hydraulics Custom drive solutions Agricultural Mining / tunnelling Wind energy Mechanical Municipal machinery engineering equipment Construction Materials handling Elevator hydraulics Marine / offshore Power engineering equipment Group presentation October 2009 Page 47
Slide 48: Bucher Hydraulics: Net sales and EBIT
Bucher Hydraulics Net sales and EBIT CHF m CHF m 500 100 400 80 300 60 200 40 100 20 0 0 2004 2005 2006 2007 2008 * Net sales EBIT * before impairment charges Group presentation October 2009 Page 48
Slide 49: Bucher Hydraulics: Net sales and number of employees 2008
Bucher Hydraulics Net sales and number of employees 2008 Net sales Number of employees CHF 497 m 1 614 persons Europe 66% Switzerland 32% Switzerland 5% Germany 30% Americas 15% Americas 18% Italy 12% Asia 10% Asia 7% Other 1% Other 4% Group presentation October 2009 Page 49
Slide 50: Bucher Hydraulics: Market position
Bucher Hydraulics Market position • Leading specialist in mobile, industrial and elevator hydraulics across Europe; built up presence in USA • Market share: 10% to 20% in specialised areas of hydraulic engineering • Focused on customised drive solutions • Main competitors: Bosch-Rexroth (DE), Sauer
Slide 51: Bucher Hydraulics: Leading European position
Bucher Hydraulics Leading european position Pumps Valves Motors & Accessoires Power Cylinders Packs Competitors Pis- Vane Gear Indu- Ser- Direc- Car- Mani- Spe- Gear Pis- Cylin- Elec- Accu- Fil- Other Com- Con- ton strial vo tional- tridge folds cial ton ders tro- mulat ters pact trac- (Cetop) spool
Slide 52: Bucher Hydraulics: Segment growth rates
Bucher Hydraulics Segment growth rates Revenue index 250 200 150 100 50 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Hydraulik Engineering Bucher Hydraulics Source: VDMA Group presentation October 2009 Page 52
Slide 53: Bucher Hydraulics: 2008 / 2009 highlights
Bucher Hydraulics 2008 / 2009 highlights • Very good performance for three quarters and a massive slump in the fourth quarter of 2008 - All important market segments except agricultural machinery affected - Capacities fully utilised and in some cases strained until October 2008 • Position expanded i
Slide 54: Bucher Hydraulics: Outlook for 2009
Bucher Hydraulics Outlook for 2009 • No significant recovery expected this year - Operations as a component supplier depend directly on customers’ performance - Customers’ destocking is nearing an end - All market segments incl. agricultural machinery affected by the sharp downturn • Order intake sh
Slide 55: Emhart Glass: Glass container manufacturing equipment
Emhart Glass Glass container manufacturing equipment Gob forming Glas forming machine Ware handling Inspection Furnace Forehearth Gob forming Palletizing Forming machine Lehr Lehr Inspection Ware handling Glass container manufacturing process Group presentation October 2009 Page 55
Slide 56: Emhart Glass: Net sales and EBIT
Emhart Glass Net sales and EBIT CHF m CHF m 500 50 400 40 300 30 200 20 100 10 0 0 2004 2005 2006 2007 2008 Net sales EBIT Group presentation October 2009 Page 56
Slide 57: Emhart Glass: Net sales and number of employees 2008
Emhart Glass Net sales and number of employees 2008 Net sales Number of employees CHF 418 m 1 058 persons Europa 51% Sweden 44% Americas 20% Americas 31% Asia 15% Asia 7% Middle East/Africa 12% Switzerland 7% Other 2% Italy 3% Germany 2% Other 4% Group presentation October 2009 Page 57
Slide 58: Emhart Glass: Market position
Emhart Glass Market position • World’s leading supplier of machinery, equipment and services for glass container manufacturers • Market share: 45% worldwide for glass forming machines and services; 25% worldwide for inspection systems • Main competitors: Owens-Illinois (USA), Saint Gobain (FR), Bott
Slide 59: Emhart Glass: Worldwide leading manufacturer
Emhart Glass Worldwide leading manufacturer Hot End Cold End IS forming machine Competitors Batch Melter Fore- Feeder NIS AIS IS Ware Lehr Inspec- Palle- Wrap- charger (Furnace) hearth & shear handling tion tizing ping Emhart Glass Bottero (IT) BDF (IT) O-I (USA) Sklostroj (CZ) GPS (DE) Heye (DE) So
Slide 60: Emhart Glass: Glass consumption per capita
Emhart Glass Glass consumption per capita The high correlation between GNI and glass consumption fosters growth in Eastern Europe & Asia. 100 Portugal 90 Glass Container Production [kg/capita] 80 Major "Old World" Wine Australia 70 Markets France 60 Italy 50 Bulgaria Spain Germany West European Majo
Slide 61: Emhart Glass: 2008 / 2009 highlights
Emhart Glass 2008 / 2009 highlights • Good operating performance in 2008 - Sales of CHF 418 million at the record 2007 level and EBIT at CHF 35 million - Strong demand with good glass container prices - Heavy capital spending on expanding and modernising glass container manufacturing facilities - Ve
Slide 62: Emhart Glass: Outlook for 2009
Emhart Glass Outlook for 2009 • Lower capital spending in the glass container industry - Glass container prices now falling after the price rise in 2008 - High capacity expansion by customers in previous years - Considerable impediments to financing capital-intensive projects - Projects deferred, sc
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