Bucher Industries Ag · SIX:BUCN
Bucher Industries — Investor Presentation (June 2011)
71 slides from Bucher Industries's investor presentation, June 2011
Slide 1: Group presentation
Group presentation Group presentation August April 2011 2010 Page 1
Slide 2: Technology group founded in 1807
Technology group founded in 1807 • Mechanical and vehicle engineering group with long-term industrial focus • Strategy of technology and market leadership - Product innovation - Sales network and high service levels - Good price/performance ratios for customers - Taking advantage of industry consoli
Slide 3: Our businesses
Our businesses Kuhn Group Bucher Municipal Bucher Hydraulics Emhart Glass Bucher Specials World’s leading European and International leader in World market leader in Independent businesses: manufacturer of Australian market the design and manu- glass container winemaking and fruit specialised agricu
Slide 4: No. 1 market positions
No. 1 market positions Kuhn Group worldwide in hay and forage harvesting machinery and feed mixers Bucher Municipal in Europe in street sweepers Bucher Hydraulics in Europe in specialised segments of mobile hydraulics Emhart Glass worldwide in glass container manufacturing equipment Bucher Specials
Slide 5: Major manufacturing sites worldwide
Major manufacturing sites worldwide Eurocommittee June 2011 Page 5
Slide 6: Group strategy
Group strategy • Increase in company value RONOA >> WACC • Diversified group with operational business units focused on specific market segments • Strengthening of existing divisions and individual businesses - Continuous product innovation - Operational efficiency with flexible structures - Interna
Slide 7: Medium-term earnings targets
Medium-term earnings targets EBIT margin Goals 2010 2009 2008 2007 2006 Kuhn Group 11 9.2 *7.5 12.4 11.6 **9.3 Bucher Municipal 8 7.3 **6.5 *7.6 6.9 5.5 Bucher Hydraulics 11 9.9 *4.3 *11.3 15.1 12.6 Emhart Glass 9 **3.1 4.0 8.4 7.9 **8.5 Bucher Specials 9 4.6 5.4 10.7 9.2 6.7 Bucher Industries 9 **7
Slide 8: Group at a glance
Group at a glance • 2010 dominated by the rebound and currency turmoil - Contrasting trends: lower sales and rising order intake - Substantial differences across market segments, regions and over time - Good operating improvement despite the significant negative impact of foreign currency translatio
Slide 9: Group at a glance (continued)
Group at a glance (continued) • Emerging stronger out of the crisis - With an improved cost structure - With many new products and modern production facilities - With a sound balance sheet and more than CHF 500 million in cash and cash equivalents - With healthy confidence and optimism for the futur
Slide 10: Net sales by division and region in 2010
Net sales by division and region in 2010 CHF 2 034 million Kuhn Group 42% Europe 64% Bucher Municipal 18% Switzerland 6% Bucher Hydraulics 18% Americas 17% Emhart Glass 13% Asia 7% Bucher Specials 9% Other 6% Group presentation June 2011 Page 10
Slide 11: Number of employees by region in 2010
Number of employees by region in 2010 France 33% North America 13% Switzerland 12% Germany 8% United Kingdom 5% Sweden 5% Brazil 5% Italy 4% Netherlands 4% Australia 4% Asia 3% Other 4% Group presentation June 2011 Page 11
Slide 12: Key figures
Key figures CHF million 2010 2009 % change Order intake 2 217 1 797 23.3 Net sales 2 034 2 142 -5.1 Order book 663 507 30.7 Operating profit (EBITDA) 224 190 18.0 as % of net sales 11.0% 8.9% Operating profit (EBIT) before impairment 151 112 35.5 as % of net sales 7.4% 5.2% Operating profit (EBIT) 1
Slide 13: Investing in the future
Investing in the future CHF million 2010 2009 % change Development costs 73 76 -3.6 Capital expenditure on property, plant 66 59 12.5 and equipment Acquisitions 1 173 Group presentation June 2011 Page 13
Slide 14: Division results
Division results 2010 2009 CHF million EBIT EBIT margin EBIT EBIT margin Kuhn Group* 78 9.2% 71 7.5% 7 0.8% Bucher Municipal 27 7.3% 15 3.9% Bucher Hydraulics* 37 9.9% 14 4.3% -9 -2.7% Emhart Glass 3 1.2% 12 4.0% Bucher Specials 9 4.6% 10 5.3% Other/consolidation -3 -9 Bucher Industries* 151 7.4% 11
Slide 15: Net sales and number of employees
Net sales and number of employees CHF m Empl. 3000 9000 7639 2500 7500 2000 6000 2034 1500 4500 1000 3000 500 1500 0 0 2006 2007 2008 2009 2010 Net sales Number of employees Group presentation June 2011 Page 15
Slide 16: Net sales and results before impairment
Net sales and results before impairment CHF m CHF m 3000 2789 600 2459 2500 500 2087 2142 2034 2000 342 400 286 1500 276 300 229 224 185 190 1000 151 200 124 171 184 112 500 100 96 98 62 0 0 2006 2007 2008 2009 2010 Net sales EBITDA EBIT Profit for the year Group presentation June 2011 Page 16
Slide 17: Net operating assets and RONOA before impairment
Net operating assets and RONOA before impairment CHF m % 1000 23.8 25 983 952 800 20 15.3 20.7 600 692 709 15 12.2 400 548 10 6.4 200 5 0 0 2006 2007 2008 2009 2010 Net operating assets (closing date) RONOA Group presentation June 2011 Page 17
Slide 18: Net operating assets and RONOA after impairment
Net operating assets and RONOA after impairment CHF m % 1000 23.8 25 922 897 800 20 14.3 692 18.5 709 600 12.4 15 400 538 10 200 5 1.5 0 0 2006 2007 2008 2009 2010 Net operating assets (closing date) RONOA Group presentation June 2011 Page 18
Slide 19: Equity and return on equity before impairment
Equity and return on equity (ROE) before impairment CHF m % 1000 25 21.4 21.0 917 800 873 885 20 725 748 600 15 14.0 12.7 400 10 200 6.8 5 0 0 2006 2007 2008 2009 2010 Equity Return on equity Group presentation June 2011 Page 19
Slide 20: Equity and return on equity
Equity and return on equity CHF m % 1000 25 21.4 800 873 846 20 793 725 748 600 16.9 15 14.0 400 12.7 10 200 5 0 0 -200 -3.0 -5 2006 2007 2008 2009 2010 Equity Return on equity Group presentation June 2011 Page 20
Slide 21: Operating free cash flow
Operating free cash flow CHF m 200 202 183 150 100 101 50 43 -15 0 -50 2006 2007 2008 2009 2010 Group presentation June 2011 Page 21
Slide 22: Net cash/debt and free cash flow
Net cash/debt and free cash flow Net cash/debt Free cash flow CHF m CHF m 400 400 300 254 300 197 200 200 100 173 164 100 -16 19 104 0 0 -100 1 -111 -118 -100 -156 -253 -200 -200 -300 -223 -300 -368 -400 -400 2006 2007 2008 1st half-year 2009 1st half-year 2010 2009 2010 Net cash/debt Free cash flow
Slide 23: Total assets and equity
Total assets and equity CHF m 2500 2130 2068 2125 1985 1840 2000 1500 873 846 793 1000 725 748 39.4% 41.0% 40.9% 37.3% 500 37.7% 0 2006 2007 2008 2009 2010 Total assets Equity Group presentation June 2011 Page 23
Slide 24: Equity / Intangible assets
Equity / Intangible assets CHF m 1000 873 846 793 725 748 800 600 400 131 165 135 89 200 62 45 79 61 60 53 0 2006 2007 2008 2009 2010 Equity Intangible assets Thereof goodwill Group presentation June 2011 Page 24
Slide 25: Group outlook for 2011
Group outlook for 2011 • Positive trend in demand expected to continue - Higher farmers’ income fuelling capital spending due to high prices of agricultural produce - Mobile hydraulic solutions benefiting from growth in several market segments and start of series production for some major projects -
Slide 26: 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 June 2011 Page 26
Slide 27: 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 2006 1) 2007 2008 2009 2) 2010 1) Before restructuring 2) Before impairment Net sales EBIT Group presentation June 2011 Page 27
Slide 28: Kuhn Group: Net sales and number of employees 2010
Kuhn Group Net sales and number of employees 2010 Net sales Number of employees CHF 851 m 3 593 people Europe 73% France 62% Americas 22% North America 13% Asia 3% Brazil 11% Other 2% Netherlands 9% Other 5% Group presentation June 2011 Page 28
Slide 29: 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 30: 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 31: Kuhn Group: World farm equipment market
Kuhn Group World farm equipment market Segments % of market Farm tractors 29% Harvesting machinery 16% Hay and forage 6% machinery Tillage 6% Planting and seeding, 10% crop protection, fertilizing machinery Other farm equipment 33% machinery, attachments & parts Group presentation June 2011 Page 31
Slide 32: Kuhn Group: World farm equipment market by region
Kuhn Group World farm equipment market by region Western Europe 32% North America 31% China 9% Central and South America 6% India 4% Central and Eastern Europe 3% Africa and Middle East 3% Australia 2% Others 10% Group presentation June 2011 Page 32
Slide 33: Kuhn Group: 2010 highlights
Kuhn Group 2010 highlights • Varying market conditions - Growth rebounding in North America since the beginning of the year and in Western Europe since mid-year - Farmers’ income on the rise, driven by high prices of agricultural produce, despite higher production costs - Improving financial situati
Slide 34: Kuhn Group: Outlook for 2011
Kuhn Group Outlook for 2011 • 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 and an improved lending situation i
Slide 35: Bucher Municipal: Sweepers and winter maintenance equipment
Bucher Municipal Sweepers and winter maintenance equipment Compact sweepers Truck mounted sweepers Spreaders Refuse collection vehicles Group presentation June 2011 Page 35
Slide 36: 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 2006 2007 2008 1) 2009 2) 2010 1) Before impairment 2) Before restructuring Net sales EBIT Group presentation June 2011 Page 36
Slide 37: Bucher Municipal: Net sales and number of employees 2010
Bucher Municipal Net sales and number of employees 2010 Net sales Number of employees CHF 373 m 1 334 people Europe 66% United Kingdom 28% Switzerland 6% Switzerland 22% Australia 21% Australia 20% Asia 4% Italy 8% Other 3% Germany 7% Denmark 6% Latvia 6% Other 3% Group presentation June 2011 Page 3
Slide 38: Bucher Municipal: Market position
Bucher Municipal Market position • Europe’s leading manufacturer of compact and truck mounted sweepers, and winter maintenance equipment • Market share in Europe: compact sweepers 35% truck mounted sweepers 60% • Complete product line for municipal applications • Main competitors: Schmidt (DE), Ravo
Slide 39: Bucher Municipal: Complete product range
Bucher Municipal Complete product range Competitors Sweepers Specialist Spreaders range 1m3 2m3 4m3 5m3 6m3 8m3 mounted towed Bucher Municipal (CH) Aebi-Schmidt (DE) Boschung (CH) Hako (DE) Faun (DE) Elgin (USA) Scarab (UK) Epoke (DK) Acometis (FR) Group presentation June 2011 Page 39
Slide 40: Bucher Municipal: 2010 highlights
Bucher Municipal 2010 highlights • National debt having only a partial impact as yet - Uncertainty in public sector budgeting - Some 30% contraction in market volume over the past two years - Sweepers mainly affected by heightened competition in public tenders • Two harsh winters in succession drove
Slide 41: Bucher Municipal: Outlook for 2011
Bucher Municipal Outlook for 2011 • Consequences of high national debt - Local authorities’ austerity measures - Mounting competition due to suppliers’ excess capacities - Demand expected to continue falling • Countermeasures by Bucher Municipal - Completion of the new generation of sweepers - Commi
Slide 42: 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 Group presentation June 2011 Pag
Slide 43: 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 2006 2007 2008 * 2009 * 2010 Net sales EBIT * Before impairment charges Group presentation June 2011 Page 43
Slide 44: Bucher Hydraulics: Net sales and number of employees 2010
Bucher Hydraulics Net sales and number of employees 2010 Net sales Number of employees CHF 371 m 1 544 people Europe 61% Germany 32% Switzerland 5% Switzerland 29% Americas 21% Americas 19% Asia 12% Italy 10% Other 1% Asia 7% Other 3% Group presentation June 2011 Page 44
Slide 45: Bucher Hydraulics: Market position
Bucher Hydraulics Market position • Leading specialist in mobile, industrial and elevator hydraulics across Europe; presence built up in the USA • Market share: 10% to 20% in specialised areas of hydraulic engineering • Focused on customised drive solutions • Main competitors: Bosch-Rexroth (DE), Sa
Slide 46: Bucher Hydraulics: Leading market position in Europe
Bucher Hydraulics Leading market position in Europe Pumps Valves Motors & Accessories 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- (Cet
Slide 47: 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 2010 Hydraulics Engineering Bucher Hydraulics Source: VDMA Group presentation June 2011 Page 47
Slide 48: Bucher Hydraulics: 2010 highlights
Bucher Hydraulics 2010 highlights • Unexpectedly positive market recovery - In all main sales regions (Europe, the USA, India, China) - Inventory cycle in full swing: leading to shortages in the supply chain with lengthening delivery times - Particularly strong rebound in the construction equipment
Slide 49: Bucher Hydraulics: Outlook for 2011
Bucher Hydraulics Outlook for 2011 • Positive market conditions expected to continue - Main markets in Europe, the USA, India and China - Years of development work culminating in new customer projects • High level of project activity for large customers thanks to - Many years of collaboration - Cust
Slide 50: 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 Group presentation June 2011 Page 50
Slide 51: 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 2006 2007 2008 2009 2010 * ** Before restructuring Net sales EBIT Group presentation June 2011 Page 51
Slide 52: Emhart Glass: Net sales and number of employees 2010
Emhart Glass Net sales and number of employees 2010 Net sales Number of employees CHF 259 m 874 people Europe 51% Sweden 43% Asia 22% Americas 30% Americas 20% Asia 10% Africa 6% Switzerland 8% Other 1% Italy 3% Other 6% Group presentation June 2011 Page 52
Slide 53: 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 54: Emhart Glass: World's leading machinery manufacturer
Emhart Glass World’s leading machinery 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 Sanjin Bottero (IT) BDF (IT) O-I (USA) Sklostroj (CZ) GPS (G
Slide 55: Emhart Glass: Per capita glass consumption
Emhart Glass Per capita glass consumption 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 56: Emhart Glass: 2010 highlights
Emhart Glass 2010 highlights • Late-cycle market environment - Highly capital-intensive glass container industry - Very low demand until the beginning of the fourth quarter - Ten-year low reached • Past the trough - Glasstec in Düsseldorf triggered a trend reversal; Emhart Glass showed by far the mo
Slide 57: Emhart Glass: Outlook for 2011
Emhart Glass Outlook for 2011 • Pent-up demand in the glass container industry - Rapid and substantial rise in demand for glass containers - Modernisation necessary due to increased quality requirements - Very high level of project activity • As the market leader, Emhart Glass will benefit from the
Slide 58: Bucher Specials: Independent businesses
Bucher Specials Independent businesses Fruit juice processing systems Agricultural distributorship Winemaking equipment and drying equipment for Switzerland Horizontal grape presses Hydraulic presses New Holland tractor Micro-filtration systems Filtration systems Round balers Group presentation June
Slide 59: Bucher Specials: Net sales and EBIT
Bucher Specials Net sales and EBIT CHF m CHF m 300 35 250 30 25 200 20 150 15 100 10 50 5 0 0 2006 2007 2008 2009 2010 Net sales EBIT Group presentation June 2011 Page 59
Slide 60: Bucher Specials: Net sales and number of employees 2010
Bucher Specials Net sales and number of employees 2010 Net sales Number of employees CHF 187 m 535 people Europe 45% France 60% Switzerland 39% Switzerland 27% Americas 8% Chile 6% Asia 5% Italy 2% Other 3% Other 5% Group presentation June 2011 Page 60
Slide 61: Bucher Vaslin: Market position
Bucher Vaslin Market position • World market leader in winemaking equipment • Strong global distributor network • Specialised production facilities in France and Chile • Market share: 35% to 50% worldwide • Main competitors: Pera (FR), Della Toffola (IT), Diemme (IT), Velo (IT) and other Italian and
Slide 62: Bucher Vaslin: World market leader
Bucher Vaslin World market leader Wine production Competitors Reception Crushing Pressing Fermentation Filtration Filling Bucher Vaslin Pera (FR) Diemme (IT) Velo (IT) Della/Toffola (IT) Gai (IT) Group presentation June 2011 Page 62
Slide 63: Bucher Vaslin: Wine production
Bucher Vaslin Wine production Group presentation June 2011 Page 63
Slide 64: Bucher Unipektin: Market position
Bucher Unipektin Market position • World market leader in fruit, berry and vegetable juice processing equipment • Market share: 35% to 50% worldwide • Development of a new business segment for dewatering of municipal and industrial sludge • Main competitors: Flottweg (DE), GEA (DE), Alfa Laval (SE)
Slide 65: Bucher Unipektin: World market leader
Bucher Unipektin World market leader Juice production Competitors Reception Milling Mash Dejuicing Pasteuri- Filtration Adsorp- Evapo- heating zation tion ration Bucher Unipektin Flottweg (DE) Bauer & Partners (PL) GEA Group (DE) Alfa Laval (SE) Schmidt-Bretten (DE) Bellmer (DE) Kaimi (CN) Group pre
Slide 66: Bucher Unipektin: Apple production
Bucher Unipektin Apple production Million tonnes 80 70 60 50 40 Others South America 30 Northern America Southern Europe 20 Western Europe Eastern Europe 10 Southern Asia 0 Eastern Asia 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Group presentation June 2011 Page 66
Slide 67: Bucher Landtechnik: Market position (in Switzerland)
Bucher Landtechnik Market position (in Switzerland) • Distributorship of tractors and agricultural machinery • Well established among farmers and distributors • Professional distributor network • High quality of service • Wide range of tractors (New Holland, Case, Steyr), attachments (Kuhn) and whee
Slide 68: Bucher Landtechnik: Market leader in Switzerland
Bucher Landtechnik Market leader in Switzerland Competitors Hay and forage Hedge Feed Tillage equipment Seeders Sprea- Spray- Trac- Harvesters Wheel- Mowers Tedders Rakes Balers cutters mixers driven non- drilling precision ders ers tors self- loaders driven propelled Bucher Weide- Kuhn Kuhn Kuhn Ku
Slide 69: Bucher Specials: 2010 highlights
Bucher Specials 2010 highlights • Varying market conditions - Strong growth in demand for winemaking equipment fuelled by European Union subsidies and high product innovation - Weak fruit juice equipment business despite rising concentrate prices - New sludge projects delayed; first industrial appli
Slide 70: Bucher Specials: Outlook for 2011
Bucher Specials Outlook for 2011 • Market outlook for the independent businesses - Continued growth in winemaking equipment driven by EU subsidies and product innovation - Tentative recovery in fruit juice equipment business despite high concentrate prices; customers initially strengthening their ba
Slide 71: Group outlook for 2011
Group outlook for 2011 • Positive trend in demand expected to continue - Higher farmers’ income fuelling capital spending due to high prices of agricultural produce - Mobile hydraulic solutions benefiting from growth in several market segments and start of series production for some major projects -
Bucher Industries — Investor Presentation (June 2011) on 6ix