Bucher Industries Ag · SIX:BUCN
Bucher Industries — FY2007 Earnings Presentation
67 slides from Bucher Industries's earnings presentation, March 2008
Slide 1: Annual press conference and annual analysts conference
Annual press conference and annual analysts conference Annual press conference and annual analyst conference page 1
Slide 2: Kurt Siegenthaler, Chairman; Philip Mosimann, CEO; Roger Baillod, CFO
Kurt Siegenthaler, Chairman Philip Mosimann, CEO Roger Baillod, CFO Annual press conference and annual analyst conference page 2
Slide 3: Annual press conference and annual analysts conference
Annual press conference and annual analysts conference Annual press conference and annual analyst conference page 3
Slide 4: Annual Report 2007
Annual Report 2007 Philip Mosimann, CEO Annual press conference and annual analyst conference page 4
Slide 5: Group at a glance
Group at a glance • Best result ever in the company’s 200-year history • All divisions reach or exceed a 14% return on net operating assets after tax • Group sales up 18% to CHF 2.5 billion • High organic growth of 15% • Flexible organisation generates sales volume with existing infrastructure • Pro
Slide 6: Group at a glance (continued)
Group at a glance (continued) • Marked improvement in profitability - EBITDA margin up from 8.8% to 11.6% - EBIT margin up from 5.9% to 9.3% - RONOA after tax up from 14.3% to 23.8% • Divisions strengthened - Bucher Hydraulics: by Monarch Hydraulics in the USA - Emhart Glass: by ICS / Inex and R&D c
Slide 7: Key figures
Key figures CHF million 2007 2006 Change % Order intake 2 704 2 163 25.0 Net sales 2 459 2 087 17.8 Order book 871 605 44.0 Operating profit (EBITDA) 286 185 54.9 in % of net sales 11.6% 8.8% Operating profit (EBIT) 229 124 85.4 in % of net sales 9.3% 5.9% Net profit 171 96 79.1 in % of net sales 7.
Slide 8: Net sales by divisions and regions 2007
Net sales by divisions and regions 2007 CHF 2459 million Kuhn Group 38% Europe 67% Bucher Municipal 22% Switzerland 5% Emhart Glass 17% Americas 16% Bucher Hydraulics 16% Asia 7% Bucher Process 7% other 5% Annual press conference and annual analyst conference page 8
Slide 9: Number of employees
Number of employees Number of employees 2007 2006 Change % at year end 7 484 6 775 10.5 average during year 7 261 6 882 5.5 Annual press conference and annual analyst conference page 9
Slide 10: Personnel by regions 2007
Personnel by regions 2007 France 34% Americas 16% Switzerland 13% Germany 10% Great Britain 7% Sweden 6% Italy 5% Australia 4% Asia 3% other 2% Annual press conference and annual analyst conference page 10
Slide 11: Investment for the future
Investment for the future CHF million 2007 2006 Change % Product development 71 65 8.9 Capital expenditure 128 58 121.0 Annual press conference and annual analyst conference page 11
Slide 12: Five divisions
Five divisions Kuhn Group Bucher Municipal Bucher Process Bucher Hydraulics Emhart Glass Agricultural machinery Municipal vehicles for Machines and equip- Customer-specific Machines, for fodder harvesting the cleaning and ment for wine and fruit hydraulic drive and components and and processing, soi
Slide 13: Results by divisions
Results by divisions 2007 2006 CHF million EBIT EBIT- EBIT EBIT- margin margin Kuhn Group 108 11.6% 42 5.3% Bucher Municipal 37 6.6% 29 5.4% Bucher Process 19 10.9% 11 7.6% Bucher Hydraulics 59 15.1% 39 12.6% Emhart Glass 33 7.9% 23 7.0% Other/consolidation -27 -20 Bucher Industries 229 9.3% 124 5.9
Slide 14: Kuhn Group: Implements agricultural machinery
Kuhn Group Implements agricultural machinery Ploughing Soil treatment Seeding Fertilizing Manure spreaders Spraying Landscape caring Shredding Fodder harvesting Feeding technology Annual press conference and annual analyst conference page 14
Slide 15: Kuhn Group: Highlights in 2007
Kuhn Group Highlights in 2007 • 19% sales growth • Order intake up 30%, exceeding CHF 1 billion for the first time • All geographical markets contributed to the growth • Successful transfer of seed drill production after Kuhn Nodet closure • One-off gains of approx. CHF 9 million from sale of the Ku
Slide 16: Kuhn Group: Key figures
Kuhn Group Key figures CHF million 2007 2006 Change % Order intake 1 045 806 29.8 Net sales 929 779 19.3 Order book 333 211 58.1 Operating profit (EBITDA) 127 68 85.9 in % of net sales 13.6% 8.8% Operating profit (EBIT) 108 42 158.9 in % of net sales 11.6% 5.3% Number of employees at year end 3 077
Slide 17: Kuhn Group: Net sales by regions 2007
Kuhn Group Net sales by regions 2007 Europe 72% Americas 24% Asia 2% other 2% Annual press conference and annual analyst conference page 17
Slide 18: Kuhn Group: Construction assembly plant
Kuhn Group Construction assembly plant Annual press conference and annual analyst conference page 18
Slide 19: Kuhn Group: Construction assembly plant
Kuhn Group Construction assembly plant Annual press conference and annual analyst conference page 19
Slide 20: Kuhn Group: Outlook for 2008
Kuhn Group Outlook for 2008 • Continuing favourable market environment • Higher prices for agricultural products and increasing bioenergy production to spur capital spending by farmers • “Food against energy” triggering policy debate • Weakness of the US dollar against the euro weighing on operating
Slide 21: Bucher Municipal: Sweepers and winter equipment
Bucher Municipal Sweepers and winter equipment Compact sweepers Truck mounted sweepers Salt and liquid spreaders Snow blowers Waste and garbage collectors Annual press conference and annual analyst conference page 21
Slide 22: Bucher Municipal: Highlights in 2007
Bucher Municipal Highlights in 2007 • Market recovery after several years of stagnation • Major orders for sweepers and airport equipment • High public tax revenues support capital spending needs • Continued expansion of the Latvian assembly plant • New generations of sweepers on track, providing ec
Slide 23: Bucher Municipal: Key figures
Bucher Municipal Key figures CHF million 2007 2006 Change % Order intake 603 536 12.4 Net sales 557 537 3.6 Order book 178 127 40.6 Operating profit (EBITDA) 46 38 21.2 in % of net sales 8.2% 7.0% Operating profit (EBIT) 37 29 27.7 in % of net sales 6.6% 5.4% Number of employees at year end 1 535 1
Slide 24: Bucher Municipal: Net sales by regions 2007
Bucher Municipal Net sales by regions 2007 Europe 64% Switzerland 16% Australia 12% Americas 3% Asia 4% other 1% Annual press conference and annual analyst conference page 24
Slide 25: Bucher Municipal: Outlook for 2008
Bucher Municipal Outlook for 2008 • Stable market environment expected to continue - Stable demand in principal markets - Usual start-of-year uncertainties about large-scale contracts - Mild winter affecting spare parts sales • Integration of Gmeiner and realisation of synergies in the winter mainte
Slide 26: Bucher Process: Wine and fruit juice production plants
Bucher Process Wine and fruit juice production plants Grape reception Pneumatic tank presses CF filtration Reverse osmosis Mills Hydraulic presses Ultra filtration Evaporator Annual press conference and annual analyst conference page 26
Slide 27: Bucher Process: Highlights in 2007
Bucher Process Highlights in 2007 • Buoyant market conditions - Recovery of the French wine production market - Wine consumption over wine production for the first time in a long time - Higher prices for quality wines, apples and apple juice concentrate • Major orders from the UK and China for equip
Slide 28: Bucher Process: Key figures
Bucher Process Key figures CHF million 2007 2006 Change % Order intake 202 152 33.2 Net sales 174 140 24.1 Order book 69 39 74.4 Operating profit (EBITDA) 21 13 62.8 in % of net sales 12.1% 9.2% Operating profit (EBIT) 19 11 77.6 in % of net sales 10.9% 7.6% Number of employees at year end 490 506 -
Slide 29: Bucher Process: Net sales by regions 2007
Bucher Process Net sales by regions 2007 Europe 69% Switzerland 6% Americas 11% Asia 9% other 5% Annual press conference and annual analyst conference page 29
Slide 30: Bucher Process: Outlook for 2008
Bucher Process Outlook for 2008 • Demand expected to remain strong due to stable wine and apple prices at a high level • Major orders from the UK and China will favourably impact sales and operating profit • Realistic prospects of new orders for sludge dewatering equipment • Sales and operating prof
Slide 31: Bucher Hydraulics: Customer application markets
Bucher Hydraulics Customer application markets Agricultural Mining / Tunneling Wind energy Industrial Municipal machinery applications Construction Material handling Lift Technology Marine / Offshore Energy equipment Annual press conference and annual analyst conference page 31
Slide 32: Bucher Hydraulics: Highlights in 2007
Bucher Hydraulics Highlights in 2007 • Very high demand in all key market segments • Real boom in power engineering in China and in safety applications for mobile cranes • Capacity limits partly exceeded, targeted expansion started • High production flexibility, sometimes in provisional buildings •
Slide 33: Bucher Hydraulics: Key figures
Bucher Hydraulics Key figures CHF million 2007 2006 Change % Order intake 414 316 31.1 Net sales 387 308 25.6 Order book 94 59 59.1 Operating profit (EBITDA) 71 50 41.9 in % of net sales 18.3% 16.2% Operating profit (EBIT) 59 39 51.2 in % of net sales 15.1% 12.6% Number of employees at year end 1 30
Slide 34: Bucher Hydraulics: Net sales by regions 2007
Bucher Hydraulics Net sales by regions 2007 Europe 79% Switzerland 6% Asia 9% Americas 6% Annual press conference and annual analyst conference page 34
Slide 35: Bucher Hydraulics: Outlook for 2008
Bucher Hydraulics Outlook for 2008 • No foreseeable change in high demand except in the USA • Expansion of application engineering and technical sales network • New production shops in Frutigen and Neuheim and selective automation in other plants • Development and expansion of Bucher Hydraulics Nort
Slide 36: Emhart Glass: Machinery glass container production
Emhart Glass Machinery glass container production Gob forming Forming machine Ware handling Inspection Furnace Forehearth Gob forming Palletizing Forming machine Lehr Lehr Inspection Ware handling Glass container manufacturing process Annual press conference and annual analyst conference page 36
Slide 37: Emhart Glass: Highlights in 2007
Emhart Glass Highlights in 2007 • Shortage of glass containers worldwide • Rising prices for high-quality glass containers • High capital expenditure on modernisation and new facilities • Rise to become market leader in inspection machines through the acquisition of ICS / Inex, USA • Very high capac
Slide 38: Emhart Glass: R&D center 2007
Emhart Glass R&D center 2007 Annual press conference and annual analyst conference page 38
Slide 39: Emhart Glass: R&D center 2007
Emhart Glass R&D center 2007 Annual press conference and annual analyst conference page 39
Slide 40: Emhart Glass: Key figures
Emhart Glass Key figures CHF million 2007 2006 Change % Order intake 441 354 24.5 Net sales 420 332 26.6 Order book 198 170 16.6 Operating profit (EBITDA) 42 30 39.0 in % of net sales 9.9% 9.0% Operating profit (EBIT) 33 23 42.5 in % of net sales 7.9% 7.0% Number of employees at year end 1 063 862 2
Slide 41: Emhart Glass: Net sales by regions 2007
Emhart Glass Net sales by regions 2007 Europe 48% Americas 26% Asia 23% other 3% Annual press conference and annual analyst conference page 41
Slide 42: Emhart Glass: Outlook for 2008
Emhart Glass Outlook for 2008 • Good market conditions continuing at a very high level • Concentration of inspection machine production in Elmira, NJ and sales and engineering in Clearwater, FL • Expansion of low-cost assembly facility in Malaysia • New standard IS glass forming machine for Eastern
Slide 43: Group's short- to medium-term strategy
Group’s short- to medium-term strategy • Strengthening the existing five divisions by gearing measures towards sustained achievement of group targets • Concentrating on improving operational efficiency - Growth in sales and profit - EBIT margin as the key indicator of operating performance - RONOA a
Slide 44: Goals of the group and divisions
Goals of the group and divisions EBIT-margin in % goals 2007 2006 2005 2004 2003 Kuhn Group 11 11.6 5.3 8.4 8.3 7.6 Bucher Municipal 8 6.6 5.4 4.2 2.2 0.5 Bucher Process 9 10.9 7.6 5.9 4.1 -2.3 Bucher Hydraulics 11 15.1 12.6 9.9 8.6 3.9 Emhart Glass 9 7.9 7.0 5.2 6.9 6.3 Bucher Industries 9 9.3 5.9
Slide 45: 5 years trend
5 years trend CHF m CHF m 3000 300 2500 2459 250 1948 2087 2000 1641 229 200 1535 1500 124 171 150 118 91 1000 100 59 96 86 500 50 54 37 0 0 2003 2004 2005 2006 2007 net sales EBIT net profit Annual press conference and annual analyst conference page 45
Slide 46: Group outlook for 2008
Group outlook for 2008 • Performance continuing at the high 2007 level - Favourable prospects in the agricultural market - Municipal equipment at a stable high level - Buoyant situation in wine and fruit juice production equipment, also supported by the major orders in the UK and China - Slowdown in
Slide 47: Financial Report 2007
Financial Report 2007 Roger Baillod, CFO Annual press conference and annual analyst conference page 47
Slide 48: Order intake, net sales and order book
Order intake, net sales and order book CHF m % Order book le s 12.5 2800 Ne t sa 2704 1400 R C AG 2500 1200 2163 2459 2200 1000 1947 1900 1793 2087 871 800 1535 1948 1600 1641 600 605 1300 1486 480 524 400 1000 328 200 700 0 2003 2004 2005 2006 2007 order book order intake net sales Annual press con
Slide 49: Impact on net sales 2007
Impact on net sales 2007 currency adjusted +14.5% 20% 18% +3.3% 16% +1.3% -1.4% 14% 12% 10% 8% 6% 4% 2% +14.6% +17.8% 0% Internal Acquisitions Divestment Currency Total Annual press conference and annual analyst conference page 49
Slide 50: Consolidated income statement
Consolidated income statement CHF million 2007 2006 Net sales 2 459 97.2% 2 087 99.3% Changes in inventories of finished goods and work in progress 71 2.8% 14 0.7% Corporate output 2 530 100.0% 2 101 100.0% Material expenses -1 359 -53.7% -1 086 -51.7% Personnel expenses -578 -22.8% -510 -24.3% Othe
Slide 51: Consolidated income statement
Consolidated income statement CHF million 2007 2006 % change Operating profit before depreciation and amortisation (EBITDA) 286 185 +54.9 Depreciation -46 -43 +7.9 Amortisation -11 -18 -43.1 Operating profit (EBIT) 229 124 +85.4 Financial result 11 13 -15.4 Income tax -69 -41 +67.9 Net profit 171 96
Slide 52: Financial result
Financial result CHF million 2007 2006 +/- Net interest expense -8 -12 +4 Securities result 20 19 +1 Foreign exchange result -2 5 -7 Income of associates 2 2 - Other financial result -1 -1 - Financial result 11 13 -2 Change in fair value of financial instruments after taxes -8 -3 -5 Annual press con
Slide 53: Income tax
Income tax CHF million 2007 2006 +/- Result before tax 240 137 +103 Income tax 69 41 +28 Effective tax rate 28.8% 30.1% -1.3% Standard tax rate 33.3% 34.7% -1.4% Annual press conference and annual analyst conference page 53
Slide 54: Consolidated income statement after extraordinary impacts
Consolidated income statement after extraordinary impacts CHF million 2006 Extraord. pro forma 2007 impacts 2006 Net sales 2 087 2 087 2 459 EBITDA 185 +25 210 286 in % of net sales 8.8% 10.1% 11.6% Depreciation -43 -43 -46 Amortisation -18 +9 -9 -11 EBIT 124 +34 158 229 in % of net sales 5.9% 7.6%
Slide 55: Net operating assets (NOA) and NOA in % of net sales (closing date)
Net operating assets (NOA) and NOA in % of net sales (closing date) CHF m % 800 40 33.8 700 35 28.7 692 600 26.8 25.8 30 500 559 28.1 25 519 400 439 20 538 300 15 200 10 100 5 0 0 2003 2004 2005 2006 2007 net operating assets in % of net sales Annual press conference and annual analyst conference pa
Slide 56: Net operating assets (NOA) and NOA in % of net sales (average)
Net operating assets (NOA) and NOA in % of net sales (average) CHF m % 800 37.0 40 700 30.6 35 29.1 29.0 687 600 30 500 568 567 605 27.9 25 503 400 20 300 15 200 10 100 5 0 0 2003 2004 2005 2006 2007 net operating assets in % of net sales Annual press conference and annual analyst conference page 56
Slide 57: Net operating assets and return on net operating assets after tax
Net operating assets (NOA) and return on net operating assets after tax (RONOA) CHF m % 800 40 700 35 687 600 30 568 605 23.8 500 567 25 503 400 20 14.8 14.3 300 12.1 15 200 6.9 10 100 5 0 0 2003 2004 2005 2006 2007 net operating assets return on net operating assets Annual press conference and annu
Slide 58: Cash flow statement
Cash flow statement CHF million 2007 2006 +/- Net profit 171 96 +75 Depreciation and amortisation 57 61 -4 Change in provisions -29 30 -59 Change in net working capital -53 -22 -31 Other monetary positions 20 -10 +30 Cash flow from operating activities 166 154 +12 Annual press conference and annual
Slide 59: Operating free cash flow / free cash flow
Operating free cash flow / free cash flow CHF million 2007 2006 +/- Cash flow from operating activities +166 +154 +12 Investment in property, plant and equipment (net) -120 -51 -69 Investment in intangible assets (net) -3 -2 -1 Operating free cash flow 43 101 -58 Change in financial assets and secur
Slide 60: Net liquidity and free cash flow
Net liquidity and free cash flow Net liquidity Free cash flow CHF m CHF m 200 200 150 173 150 121 164 104 100 100 92 50 35 69 50 2 1 0 0 -29 -50 -50 2003 2004 2005 2006 2007 Net liquidity Free cash flow Annual press conference and annual analyst conference page 60
Slide 61: Financial liabilities and net liquidity
Financial liabilities and net liquidity CHF million 31.12. 30.06. 31.12. 2007 2007 2006 Current 178 54.3% 184 57.7% 139 51.1% Non-current 150 45.7% 135 42.3% 133 48.9% Total financial liabilities 328 100% 319 100% 272 100% Cash, cash equivalents and securities 492 339 445 Net liquidity 164 20 173 An
Slide 62: Shareholders' equity / Intangible assets
Shareholders’ equity / Intangible assets CHF m 1000 873 725 800 639 488 525 600 400 200 68 38 49 25 79 47 62 45 79 61 0 2003 2004 2005 2006 2007 Shareholders' equity Intangible assets thereof goodwill Annual press conference and annual analyst conference page 62
Slide 63: Shareholders' equity and return on equity (ROE)
Shareholders‘ equity and return on equity (ROE) CHF m % 1000 25 21.4 800 873 20 14.8 725 600 15 525 639 488 14.0 400 10 10.7 7.9 200 5 0 0 2003 2004 2005 2006 2007 Shareholders' equity Return on equity Annual press conference and annual analyst conference page 63
Slide 64: Financial key figures
Financial key figures 2007 2006 Equity ratio 41.0% 39.4% Net tangible worth (equity – goodwill) CHF m 812 679 Fixed-assets-to-net-worth ratio 210% 227% Net liquidity CHF m 164 173 Interest coverage ratio 34x 16x EBIT-margin 9.3% 5.9% Return on sales (ROS) 7.0% 4.6% Return on equity (ROE) 21.4% 14.0%
Slide 65: Shareholders' equity and market capitalization
Shareholders‘ equity and market capitalization CHF m % 2800 +686 e e pric har 2400 a ses re Inc 2000 1600 1200 800 400 0 Dec. 2003 Dec. 2004 Dec. 2005 Dec. 2006 Dec. 2007 14.03.2008 Shareholders' equity Market capitalization Annual press conference and annual analyst conference page 65
Slide 66: Dividend / Pay out ratio
Dividend / Pay out ratio CHF m % 60 60 50 53 50 40 40 28.9 27.5 27.7 30.9 30 25.8 30 26 20 22 20 10 15 10 11 0 0 1) 2003 2004 2005 2006 2007 Dividend Pay out ratio 1) Board of directors’ proposal Annual press conference and annual analyst conference page 66
Slide 67: Calendar 2008/2009
Calendar 2008/2009 Annual general meeting 15 April 2008 Press release on group net sales first quarter 2008 25 April 2008 Interim report 2008 7 August 2008 Press release on group net sales third quarter 2008 24 October 2008 Press release on group net sales 2008 2 February 2009 Annual press & analyst