Bucher Industries Ag · SIX:BUCN
Bucher Industries — FY2011 Earnings Presentation
47 slides from Bucher Industries's earnings presentation, Mar 15, 2012
Slide 1: Annual press conference and annual analyst conference
Annual press conference and annual analyst conference 15 March 2012 Annual press conference and annual analyst conference 1616 March March 2011 2011 Page 1
Slide 2: Annual press conference and annual analyst conference
Annual press conference and annual analyst conference Annual press conference and annual analyst conference 15 March 2012 Page 2
Slide 3: Group at a glance
Group at a glance • Positive business environment in most of the main markets - Very favourable conditions in agricultural machinery and glass container industry - Hydraulic components very strong in first half, then flattening out - Municipal vehicles surprisingly stable, added boost from major Mos
Slide 4: Group at a glance (continued)
Group at a glance (continued) • Continued investment in the future - Important strategic strengthening of Kuhn Group and Emhart Glass - Modernisation, automation and expansion of production sites - Continuity in research and development • Solid financial situation, despite CHF 178 million investment
Slide 5: Successful acquisitions pro forma for whole of 2011
Successful acquisitions pro forma for whole of 2011 CHF million Kuhn Sanjin Maquias- Rauch Total Krause falt Net sales 74 56 9 139 Net profit 5 3 1 9 Expected EBITDA margin >12% >13% Number of employees1) 290 1 180 16 1 486 Purchase price 28 33 3 8 72 1) At 31 December 2011 Annual press conference a
Slide 6: Key figures
Key figures CHF million % change 2011 2010 % %1) %2) Order intake 2 588 2 217 16.7 29.3 24.7 Net sales 2 336 2 034 14.9 27.2 22.0 Order book 923 663 39.2 55.0 41.6 Operating profit (EBITDA) 260 224 16.1 as % of net sales 11.1% 11.0% Operating profit (EBIT) 190 151 25.6 as % of net sales 8.1% 7.4% Pr
Slide 7: Net sales by division and region in 2011
Net sales by division and region in 2011 CHF 2 336 million Kuhn Group 44% Europe 59% Bucher Hydraulics 17% Switzerland 5% Bucher Municipal 16% Americas 20% Emhart Glass 15% Asia 9% Bucher Specials 8% Other 7% Annual press conference and annual analyst conference 15 March 2012 Page 7
Slide 8: Employee numbers
Employee numbers 2011 2010 % change At 31 December 10 136 7 899 28.3 Average during year 9 380 7 639 22.8 Net sales per employee (CHF) 249 000 266 200 -6.5 Excluding acquisitions: At 31 December 8 650 7 899 9.5 Average during year 8 512 7 639 11.4 Net sales per employee (CHF) 291 400 266 200 9.5 Ann
Slide 9: Investing in the future
Investing in the future CHF million 2011 2010 % change Development costs 74 73 1.6 Capital expenditure 118 66 79.8 Acquisitions 60 1 n.a. Annual press conference and annual analyst conference 15 March 2012 Page 9
Slide 10: 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 Annual press conference and annual analyst conference 15 March 2012 Page 10
Slide 11: Kuhn Group 2011 highlights
Kuhn Group 2011 highlights • Favourable market trend - Strong demand in all main markets - Farm incomes sound and rising, stimulating investment - Southern states of the USA and Brazil are an exception, affected by unfavourable climatic conditions, with severe drought - By contrast, outstanding cond
Slide 12: Kuhn Group 2011 highlights
Kuhn Group 2011 highlights • Expansion of strategic market position - Acquisition of Kuhn Krause, Inc., Kansas/USA, gaining Bild Krause entry to the North American grain farming market - Minority stake of 24% in Rauch machinery in Germany strengthens partnership in the seed drill and fertiliser spre
Slide 13: Kuhn Group Key figures
Kuhn Group Key figures CHF million % change 2011 2010 % %1) %2) Order intake 1 166 976 19.5 35.0 28.1 Net sales 1 026 851 20.6 36.3 28.8 Order book 506 357 41.8 60.3 46.5 Operating profit (EBITDA) 148 113 30.9 as % of net sales 14.4% 13.3% Operating profit (EBIT) 116 78 48.0 as % of net sales 11.3%
Slide 14: Kuhn Group Outlook for 2012
Kuhn Group Outlook for 2012 • Good long-term prospects - Growing population - Eating habits shifting towards more meat and dairy products - Need to produce a higher yield per hectare at lower cost • Bright short-term prospects - Good conditions in the main markets - Normal inventories at dealers - F
Slide 15: Bucher Municipal: Sweepers and winter maintenance equipment
Bucher Municipal Sweepers and winter maintenance equipment Compact sweepers Truck mounted sweepers Spreaders Refuse collection vehicles Annual press conference and annual analyst conference 15 March 2012 Page 15
Slide 16: Bucher Municipal 2011 highlights
Bucher Municipal 2011 highlights • Surprisingly stable demand despite high level of debt at national and municipal level • No significant change in investment policy • Strong competitive pressure continues in public tendering • Timely expansion of production and assembly plant in Latvia • Swiss plan
Slide 17: Bucher Municipal Key figures
Bucher Municipal Key figures CHF million % change 2011 2010 % %1) %2) Order intake 449 381 18.1 27.4 27.1 Net sales 380 373 1.9 9.9 9.5 Order book 153 89 72.9 86.7 85.2 Operating profit (EBITDA) 35 35 -2.0 as % of net sales 9.1% 9.4% Operating profit (EBIT) 27 27 -2.6 as % of net sales 7.0% 7.3% Num
Slide 18: Bucher Municipal Outlook for 2012
Bucher Municipal Outlook for 2012 • Market volumes declined by 30% since record year of 2008 • Stabilisation of demand at 2010/2011 level • Persistence of competitive pressure expected • Full capacity utilisation until mid-year thanks to major contract from Moscow, also contributing to improvement i
Slide 19: Bucher Hydraulics: Custom drive solutions
Bucher Hydraulics Custom drive solutions Municipal vehicles Agricultural Mining/ Wind energy Industrial Municipal Liftgates machinery tunnelling vehicles Construction Materials Marine/ Elevator High-voltage Dyna-Lift equipment handling offshore technology switch gear Annual press conference and annu
Slide 20: Bucher Hydraulics 2011 highlights
Bucher Hydraulics 2011 highlights • High market dynamics overall - Strong first half thanks to a certain demand backlog - Flattening of growth in the second half - Brisk demand in construction and agricultural machinery - Subdued demand in materials handling and industrial hydraulics • Significant c
Slide 21: Bucher Hydraulics Key figures
Bucher Hydraulics Key figures CHF million % change 2011 2010 % %1) Order intake 406 387 5.1 15.2 Net sales 399 371 7.5 17.7 Order book 69 63 9.5 21.0 Operating profit (EBITDA) 52 56 -6.5 as % of net sales 13.1% 15.0% Operating profit (EBIT) 35 37 -5.7 as % of net sales 8.7% 9.9% Number of employees
Slide 22: Bucher Hydraulics Outlook for 2012
Bucher Hydraulics Outlook for 2012 • Continued flattening of demand since mid-2011 • Slowdown in construction activity in China also affecting construction machine segment • Impetus from projects with globally active customers expected • Completion of expansion project at Klettgau manufacturing faci
Slide 23: Emhart Glass: Glass container manufacturing equipment
Emhart Glass Glass container manufacturing equipment Gob forming Glass 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 15
Slide 24: Emhart Glass 2011 highlights
Emhart Glass 2011 highlights • Marked upturn after ten-year low in 2010 - High capacity utilisation in glass container industry - Brisk demand in Europe, Asia, Middle East and South America - Normalisation of demand towards end of year • High capacity utilisation in new and spare-parts business - Ex
Slide 25: Emhart Glass: Joint venture with Sanjin, China
Emhart Glass Joint venture mit Sanjin, China • Acquisition of a 63% stake in Shandong Sanjin Glass Machinery Co. Ltd, with option to purchase 100% • Sanjin is market leader in China for glass forming machinery • Sanjin’s market regions and product offering an ideal fit with Emhart Glass • Purchase p
Slide 26: Emhart Glass Key figures
Emhart Glass Key figures CHF million % change 2011 2010 % %1) %2) Order intake 358 285 25.4 40.2 32.0 Net sales 345 259 33.1 48.8 37.4 Order book 145 110 32.2 47.8 18.5 Operating profit (EBITDA) 24 16 51.6 before restructuring Operating profit (EBITDA) 24 11 119.8 as % of net sales 7.1% 4.3% Operati
Slide 27: Emhart Glass Outlook for 2012
Emhart Glass Outlook for 2012 • Sustained market dynamic in the glass container industry, but at a lower level than the previous year • Strong demand expected from Asia, with completion of major order from India as an additional boost • Growth and consolidation of Sanjin as sales and earnings pillar
Slide 28: Bucher Specials: Independent businesses
Bucher Specials Independent businesses Technologies for fruit juice Agricultural distributorship Winemaking equipment and instant products for Switzerland Horizontal grape presses Hydraulic presses New Holland tractor Micro-filtration systems Filtration systems Round balers Annual press conference a
Slide 29: Bucher Specials 2011 highlights
Bucher Specials 2011 highlights • Differing market trends - Decline in winemaking equipment owing to suspension of subsidies in France - Marked upturn in processing equipment for fruit juice and instant products - Progress in sludge dewatering systems thanks to distribution agreement with Degrémont
Slide 30: Bucher Specials Key figures
Bucher Specials Key figures CHF million % change 2011 2010 % %1) %2) Order intake 208 188 10.6 15.3 10.3 Net sales 201 187 7.3 12.4 6.4 Order book 50 45 10.9 15.0 2.3 Operating profit (EBITDA) 15 11 36.4 as % of net sales 7.5% 5.9% Operating profit (EBIT) 12 9 43.0 as % of net sales 6.1% 4.6% Number
Slide 31: Bucher Specials Outlook for 2012
Bucher Specials Outlook for 2012 • Market outlook for the independent businesses - Recovery in winemaking equipment, particularly in the key market of France - Good prices for apple juice concentrate underpins sales of equipment for fruit juice processing - Order intake for sludge dewatering systems
Slide 32: Group outlook for 2012
Group outlook for 2012 • Fears of recession, high national indebtedness, turbulence on currency markets creating great uncertainty • Positive trends in our markets - Agricultural machinery: positive development of business - Municipal vehicles: big Moscow order fuels growth, demand otherwise stable
Slide 33: Annual General Meeting 2012 Proposals
Annual General Meeting 2012 Proposals • Dividends - CHF 4.00 per share (2010 financial year: CHF 3.00) - Yield of 2.3% based on the average share price of CHF 173.80 for the year • Capital reduction - Buy-back of 315 900 shares, corresponding to 2.99% of the issued shares, amounting to CHF 50.2 mill
Slide 34: Financial report 2011
Financial report 2011 Annual press conference and annual analyst conference 1516 March March 2012 2011 Page 34
Slide 35: Order intake, order book and net sales
Order intake, order book and net sales CHF m CHF m 2792 2704 2800 2588 1400 2789 2500 1200 2142 2217 2200 2459 1000 2336 1900 871 2034 923 800 843 1600 1797 600 663 1300 507 400 1000 200 700 0 2007 2008 2009 2010 2011 Order book Order intake Net sales Annual press conference and annual analyst confe
Slide 36: Order intake, order book and net sales
Order intake, order book and net sales Order intake and order book Net sales CHF m CHF m 1000 1000 790 800 800 640 683 608 641 609 550 549 537 600 524 600 544 466 566 400 522 400 475 471 200 200 567 720 462 727 506 772 663 923 0 0 1. quarter 2. quarter 3. quarter 4. quarter 1. quarter 2. quarter 3.
Slide 37: Impact on net sales, EBITDA and EBIT
Impact on net sales, EBITDA and EBIT CHF m +15% -5% +16% +18% +26% 2142 2034 2336 +36% 190 224 260 1) 112 151 190 Net sales EBITDA EBIT 2011 2010 2009 1) before impairment charges Annual press conference and annual analyst conference 15 March 2012 Page 37
Slide 38: Consolidated income statement
Consolidated income statement CHF million 2011 2010 Change in % Net sales 2 336 2 034 14.9 Operating profit (EBITDA) 260 224 16.1 in % of net sales 11.1% 11.0% Depreciation -54 -57 -4.9 Amortisation -16 -16 - Operating profit (EBIT) 190 151 25.6 in % of net sales 8.1% 7.4% Net financial items -18 -1
Slide 39: Net financial items
Net financial items CHF million 2011 2010 +/- Net interest expense -15 -18 +3 Net gain on financial instruments 2 11 -9 Foreign exchange gains and losses -3 -1 -2 Other financial items -2 -3 +1 Net financial items -18 -11 -7 Annual press conference and annual analyst conference 15 March 2012 Page 39
Slide 40: Income tax
Income tax CHF million 2011 2010 +/- Result before tax 172 141 +31 Income tax -45 -23 -3 Effective tax rate 25.8% 30.5% Annual press conference and annual analyst conference 15 March 2012 Page 40
Slide 41: Net operating assets (NOA) and RONOA after tax
Net operating assets (NOA) and RONOA after tax CHF m % 52.0 1200 54 1000 41.8 45 1114 35.4 800 891 36 27.9 849 828 600 31.9 27 687 400 23.8 18 18.5 17.0 200 1.5 12.4 9 0 0 2007 2008 2009 2010 2011 Net operating assets (4q-average) In % of net sales RONOA Annual press conference and annual analyst co
Slide 42: Free cash flow
Free cash flow CHF million 2011 2010 +/- Net cash flow from operating activities 172 260 -88 Purchases of property, plant and equipment (net) -115 -54 -61 Purchases of intangible assets (net) -2 -4 +2 Operating free cash flow 55 202 -147 Changes in financial assets and short-term investments 2 -4 +6
Slide 43: Net liquidity and free cash flow
Net liquidity and free cash flow Net liquidity Free cash flow CHF m CHF m 320 280 197 240 210 160 102 140 164 80 1 -16 19 70 0 0 -72 -80 1 -111 -118 -70 -156 -185 -160 -140 -240 -179 -210 -320 -223 -280 -400 -350 2007 2008 2009 1st half- 2nd half- 1st half- 2nd half- year 2010 year 2010 year 2011 ye
Slide 44: Shareholders' equity and return on equity
Shareholders’ equity and return on equity CHF m % 1000 30 800 873 24 846 793 814 748 600 21.4 18 16.9 400 16.3 12 12.7 200 6 0 0 -200 -3.0 -6 2007 2008 2009 2010 2011 Shareholders' equity Return on equity Impairment charges: 2008 CHF 39 million, 2009 CHF 86 million Annual press conference and annual
Slide 45: Summary Group financial review (1)
Summary Group financial review (1) • Currency and acquisition effects CHF million Currency effects Acquisition effects Net sales -250 +94 EBIT -23 +11 Net cash -60 Equity -14 Net operating assets -15 +88 • Net cash flow from operating activities of CHF 172 million - Small organic increase of net ope
Slide 46: Summary Group financial review (2)
Summary Group financial review (2) • Free cash flow of CHF -77 million - Investments of CHF 178 million in non-current assets and acquisitions - Share buy back of CHF 44 million • Net debt of CHF 72 million (Gearing 9%) • Ongoing high liquidity and solid balance sheet key figures - Liquid assets of
Slide 47: Financial calendar for 2012/2013
Financial calendar for 2012/2013 Annual general meeting 12 April 2012 Dividend payment 19 April 2012 Release of first quarter 2012 group sales 27 April 2012 Interim report 2012 9 August 2012 Release of third quarter 2012 group sales 26 October 2012 Release of 2012 group sales 31 January 2013 Annual