Wacker Neuson Se · XETR:WAC
Wacker Neuson — Q2 2016 Earnings Presentation
22 slides from Wacker Neuson's earnings presentation, Aug 4, 2016
Slide 1: Results Q2 2016
Results Q2 2016 Cem Peksaglam (CEO) – Günther C. Binder (CFO) August 4, 2016
Slide 2: Agenda
Agenda Overview Q2/16 and H1/16 Financials Q2/16 Outlook and H1/16 2
Slide 3: Q2 and H1/16 at a glance – High and Low Lights
Q2 and H1/16 at a glance – High and Low Lights At a glance Revenue almost on PY level despite market weaknesses, profitability improved vs. Q1/16 Europe: Solid demand in construction in Central & North, downturn in ag business (H1/16 revenue ag: -5% vs. PY) Americas: Oil & gas crisis in NA,
Slide 4: Multi-year comparison (5 years)
Multi-year comparison (5 years) Revenue and EBIT Margin Q2 (2012–2016) Revenue and EBIT Margin H1 (2012–2016) (Revenue in € million; EBIT Margin as a %) (Revenue in € million; EBIT Margin as a %) +34% +25% +16% +14% 4
Slide 5: H1/16: Lower sales in Americas drags business down
H1/16: Lower sales in Americas drags business down1 Europe2 Americas2 Asia-Pacific2 (€ million) +2% (+4%) (€ million) -14% (-12%) (€ million) +22% (+28%) 510,3 522,0 175,0 25,7 150,1 21,1 H1/15 H1/16 H1/15 H1/16 H1/15 H1/16 Light equipment3 Compact equipment3 Services3 (€ million) (€ million) (€ mil
Slide 6: Ag business (Weidemann, Kramer, Claas)
Ag business (Weidemann, Kramer, Claas) Revenue breakdown for H1/16 Revenue1 H1/16 vs. H1/15 (% of revenue) (in €m) -5% 105.6 99.8 H1/16 H1/15 Construction and other industries 66% 67% Agriculture 14% 15% Services 19% 19% Weak ag business Q1/16 vs. Q1/15: -11% Q2/16 vs. Q2/15: +1% H1/15 H1/16 (2015 v
Slide 7: H1/16: Comparison with peer group
H1/16: Comparison with peer group H1/16: Comparison with peer group divisions Company Change in Profit H1 (Margin) Change revenue H1/16 vs. H1/15 Peer 1 (Constr./Agri.) Recr. Op. Inc.: +26% (margin: 5.6%) 1% Wacker Neuson EBIT: -23% (margin: 7.3%) -1% Peer 2 Construction division Adj. op. profit -39
Slide 8: Wacker Neuson plans to open new factory in China
Wacker Neuson plans to open new factory in China Signing of contract in Pinghu, China: from left to right: Mr. Cem Peksaglam (CEO Wacker Neuson SE), Mr. Zhou Diming (Director of the Administration Committee of Pinghu Economic-Technological Development Zone) Details Located in Pinghu, 30 km from Sh
Slide 9: Agenda
Agenda Overview Q2/16 and H1/16 Financials Q2/16 Outlook and H1/16 9
Slide 10: Q2/16: Revenue adjusted for currency effects increases
Q2/16: Revenue adjusted for currency effects increases Income statement (extract) and number of employees (€ million) Q2/16 As % of Q2/15 As % of revenue revenue Change in %1 Revenue 381.4 100.0 382.1 100.0 -0.2 (2.0) Gross profit 107.7 28.2 111.1 29.1 -3.1 Sales and service expenses -50.6 -13.3 -48
Slide 11: Q2/16: Development of profit since Q1/15
Q2/16: Development of profit since Q1/15 EBIT development Q1/15-Q2/16 (EBIT in € million; EBIT Margin as a %) EBIT EBIT margin 40,0 20,0% 35,0 34,0 33,4 18,0% 31,7 16,0% 30,0 14,0% 25,0 22,4 12,0% 9,8% 20,0 8,9% 17,3 8,8% 10,0% 15,5 8,0% 15,0 6,3% 5,0% 5,5% 6,0% 10,0 4,0% 5,0 2,0% 0,0 0,0% Q1/15 Q2/
Slide 12: H1/16: Strong H1/15 figures are hard to reach
H1/16: Strong H1/15 figures are hard to reach Income statement (extract) and number of employees (€ million) H1/16 As % of H1/15 As % of revenue revenue Change in %1 Revenue 697.8 100.0 706.4 100.0 -1.2 (0.5) Gross profit 194.7 27.9 207.5 29.4 -6.2 Sales and service expenses -96.6 -13.8 -93.9 -13.3
Slide 13: H1/16: Comparison of EBIT vs. previous year
H1/16: Comparison of EBIT vs. previous year EBIT-change H1/16 vs. H1/15 (in € m) 70 65.7 -2.5 -10.3 60 -2.5 +0.3 50.7 50 40 30 20 10 0 1 EBIT H1/15 Revenue volume effect Revenue margin effect S,G&A Other EBIT H1/16 1 Other income & expense Earnings negatively impacted in crisis-hit emerging markets/
Slide 14: H1/16: Development of profit per region
H1/16: Development of profit per region EBIT-change by region H1/16 vs. H1/15 (€ million) 80 70 65.7 -19.2 60 +19.0 50.7 50 -11.1 40 -3.7 30 20 10 0 EBIT H1/15 Europe Americas Asia-Pacific Consolidation EBIT H1/16 H1/16 vs. H1/15 Europe Americas Asia-Pacific Total Revenue +2% -14% +22% -1% EBIT -26%
Slide 15: H1/16: Investments and cash flow development
H1/16: Investments and cash flow development Cash flow from Cash flow from Depreciation Free cash flow operating activities investment activities (€ million) (€ million) (€ million) (€ million) 4% 35.7 33.8 H1/15 H1/16 32.5 H1/15 H1/16 +210% -24.5 11.5 -54.7 -43% -60.2 -43.2 +10% H1/15 H1/16 H1/15 H
Slide 16: H1/16: Working capital development
H1/16: Working capital development Working capital H1/12 – H1/16 (€ million) Inventories Trade receivables Trade payables WC: -6% 631 593 487 488 234 +3% 436 240 210 204 176 -10% 495 445 328 339 356 June 30, 2012 June 30, 2013 June 30, 2014 June 30, 2015 -7% June 30, 2016 -68 -62 -72 -99 -92 Working
Slide 17: H1/16: Gearing and equity
H1/16: Gearing and equity Equity, net debt and gearing H1/12 – H1/16 (€ million) Net financial debt Equity before minority interests Gearing as a % 1.046 1.052 40% 1.000 952 907 913 35% 28% 30% 800 25% 25% 22% 25% 21% 600 20% 400 15% 255 256 +1% 258 195 203 10% 200 5% 0 0% H1/12 H1/13 H1/14 H1/15 H1
Slide 18: Share price development
Share price development Share price performance since January 2016 % Key figures share in € 2013 2014 2015 H1/15 H1/16 ISIN / WK DE000WACK012 / WACK01 Earnings per share 0.87 1.30 0.94 0.64 0.48 Reuters / WACGn.DE / WAC GR Bloomberg Dividend payment 0.40 0.50 0.50 - - Indices SDAX, DAXplus family, C
Slide 19: Agenda
Agenda Overview Q2/16 and H1/16 Financials Q2/16 Outlook and H1/16 19
Slide 20: Revised forecast for 2016
Revised forecast for 2016 Revenue and margins 2015–2016e (Revenue in € million) 1.600 30 0% to +4% 1,375 1,375–1,425 1.400 25 1.200 20 1.000 800 15 600 EBIT Margin EBIT Margin 10 7.5% 6.5-7.5% 400 5 200 0 0 2015 2016e Investments of ~ 100 m €, positive free cash Previous forecast: Revenue growth +2%
Slide 21: Financial calendar and IR contact
Financial calendar and IR contact Financial Calendar August 4, 2016 Publication of half-year report 2016; Analysts' Conference Call September 20, 2016 Baader Investment Conference, Munich September 21, 2016 German Corporate Conference, Munich November 10, 2016 Publication of nine-month report 2016;
Slide 22: Disclaimer
Disclaimer Cautionary note regarding forward-looking statements The information contained in this document has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctn