Wacker Neuson Se · XETR:WAC
Wacker Neuson — Q1 2017 Earnings Presentation
25 slides from Wacker Neuson's earnings presentation, May 11, 2017
Slide 1: Capital Market Day & Analyst and Investor Conference – Results Q1/17
Wacker Neuson SE Capital Market Day & Analyst and Investor Conference – Results Q1/17 Cem Peksaglam (CEO), Wilfried Trepels (CFO) May 11, 2017 1
Slide 2: Today: Opening of new R&D center Reichertshofen
Today: Opening of new R&D center Reichertshofen New entire process chain at one location Engineering & Admin. Research & Testing Production Training facility Area: 1.200 m² Area: 3.000 m² Area: 25.000 m² Area: 4.500 m² Engineering, Purchasing, Calculation, prototype Production facility
Slide 3: Agenda
Agenda Review Q1/17 Outlook Financial Information 3
Slide 4: Review of Q1/17
Review of Q1/17 Record revenue in Q1: +7 % yoy (€ 339m, currency adjusted +6%) Revenue in Asia/Pacific -45% yoy, due to one-off effect in China in Solid revenue growth in Europe (+9% yoy) Q1/16 (dealers stocking up compact equipment) High demand from construction and ag industry Challengin
Slide 5: Group revenue (Q1 year comparison 2013-2017)
Group revenue (Q1 year comparison 2013-2017) Revenue and EBIT margin Q1/13-Q1/17 (in Mio. €) (in %) +7% 338.5 324.3 316.4 291.6 257.1 7.8 6.4 5.5 4.8 4.3 4.0 4.2 Revenue EBIT margin in % EBIT margin in % adjusted for one-off effects Record revenue in Q1/17, profit impacted by one-off effects Note: C
Slide 6: Agenda
Agenda Review Q1/17 Outlook Financial Information 6
Slide 7: Business performance – sales split by region Q1/17
Business performance – sales split by region Q1/17 Revenue by region1,2 Europe Revenue + 9% to € 248m (in € m) Strong growth especially in German speaking countries, Scandinavia and France 339 316 -45% (-48%) 10 3% EBIT3 of € 31.7m → EBIT margin of 12.8% (Q1/16: 9.0%) 5% 17 Americas 81 24% +13
Slide 8: Business performance – sales split by business segments Q1/17
Business performance – sales split by business segments Q1/17 Revenue by business segment1, 2 (in € m) Light equipment Revenue increase by 7% to € 98m Double-digit growth with compaction equipment 20% +8% (+7%) 69 20% Difficult market environment in oil & gas and emerging markets 64 Compact eq
Slide 9: Development of revenue and profitability Q1/17
Development of revenue and profitability Q1/17 Income statement (extract) and number of employees Comparison of EBIT vs. Q1/16: Gross profit: (in € m) Change Q1/17 in % Q1/16 in % in % Volume effect: € +6.1m Margin effect: € -1.1m Revenue 338.5 100.0 316.4 100.0 7.0 Gross profit 91.9 27.1 87.0 2
Slide 10: Key figures from balance sheet – excellent credit standing
Key figures from balance sheet – excellent credit standing Net financial debt and Gearing Net financial debt/EBITDA (in € m) (as %) (x) 300 50% 12,0 257 10,3 250 226 235 237 40% 10,0 200 28% 185 7,5 30% 8,0 6,9 21% 22% 22% 6,2 150 19% 6,0 5,0 20% 100 4,0 50 10% 2,0 0 0% 0,0 Q1/13 Q1/14 Q1/15 Q1/16 Q
Slide 11: Business performance: Increase of free cash flow in Q1/17 yoy
Business performance: Increase of free cash flow in Q1/17 yoy Free cash flow (qoq 2015-2017) Inventories (qoq 2015-2017) (in € m) (in € m) (DIO2) 46 495 495 514 50 475 464 35 500 445 448 443 462 240 211 30 400 220 15 19 11 189 188 200 180 10 3 300 168 170 172 161 180 149 160 -10 Q1/15 Q2/15 Q3/15 Q4
Slide 12: Share price
Share price Share price performance last 12 months 23.31€ Market Cap: 1.635 bn € 14.55€ in € Q1/16 Q1/17 Earnings per share 0.16 0.13 Share price end of period 13.98 21.02 Market capitalization (in € m) 980.6 1,474.3 IPO of Wacker Construction Equipment AG May 15, 2007 12
Slide 13: Agenda
Agenda Review Q1/17 Outlook Financial Information 13
Slide 14: Global construction machinery sales back on growth path: +7% for 2017
Global construction machinery sales back on growth path: +7% for 2017 2016–2020 machinery sales CAGR: 5,7% Wacker Neuson’s expectations -30% +25% Europe main growth driver, esp. Central Europe Market recovery in North America stronger +7% revenues from SSL, no more one-off effects expected L
Slide 15: Positive signs of recovery in agricultural business after difficult years
Positive signs of recovery in agricultural business after 3 difficult years Opinion barometer for economic outlook concerning agriculture business in Germany Source: German Farmers’ Association, March 2017 15
Slide 16: Alliance with HAMM AG – expansion of product line/international roll-out
Alliance with HAMM AG – expansion of product line/international roll-out Tandem rollers (1.8 – 4.5 t) and compactors (weighing up to 12 t) 16
Slide 17: North America biggest market for skid steer loaders (SSL)
North America biggest market for skid steer loaders (SSL) Units-Split 2016e Forecast 2016e – 2020e (Global market 2016: 105.700) (Units) Globally, the North American markets accounts roughly for ~70% of the global units sold 140000 +23% (2016e: 74,000 units) 130.000 120000 The global market will
Slide 18: Cooperation between Randon and Wacker Neuson in Latin America
Cooperation between Randon and Wacker Neuson in Latin America Wacker Neuson launched two backhoe loader models (both 6 to 7 tons operating weight) Specifically developed to fit the needs of the Latin American market Manufacturing of backhoe loaders in Randon’s factory located in Caxias do Sul,
Slide 19: New production of mobile generators in Brazil
New production of mobile generators in Brazil Located in Itatiba, São Paulo, Brazil Building on local/regional presence, target market: Latin America Products tailored to local market’s need, engineering and production “in the region – for the region” Generator production (models: 50-70 kilo
Slide 20: New plant in China
New plant in China Located in Pinghu, 30 km from Shanghai city border Building on local/regional presence demand for repair and maintenance work on infrastructure is growing, especially in megacities Starting with the production of compact excavators for local market, more products might fol
Slide 21: Actual view on construction site of new plant in Pinghu
Actual view on construction site of new plant in Pinghu May 2017 21
Slide 22: Confirmation of forecast for 2017
Confirmation of forecast for 2017 Financials Forecast 2017e 2016 FYe 20171 Mid term Revenue EUR bn 1.36 1.40 – 1.45 >2.0 EBIT margin % 6.5 7.5 – 8.52 >9.0 (operational) Working Capital 42 <40 <40 ratio % Depending on CapEx EUR 107 m 120 m growth Free cash flow 29 m better better 1 Assumed there is n
Slide 23: Dividend proposal to AGM (May 30, 2017)
Dividend proposal to AGM (May 30, 2017) Dividend payouts 2014 2015 20161 € 0.50 per share Total payout (€ million) 35.07 35.07 35.07 (payout of € 35.07m on May 31,2017) Payout ratio (as a %) 38.3 53.0 61.7 Keeping level of last two years, ensuring dividend Eligible shares (in m) 70.14 70.14 70.1
Slide 24: Financial calendar and IR contact
Financial calendar and IR contact Financial Calendar May 30, 2017 AGM, Munich June 13, 2017 Roadshow, Frankfurt June 29, 2017 Roadshow, Paris August 8, 2017 Publication of half-year report 2017; Analyst Conference Call November 9, 2017 Publication of nine-month report 2017; Analyst Conference Call N
Slide 25: 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