Bucher Industries Ag · SIX:BUCN
Bucher Industries — Investor Presentation (March 2013)
68 slides from Bucher Industries's investor presentation, March 2013
Slide 1: Group presentation
Group presentation Group presentation March 2013 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 glass container machinery and equip- specialised agricultural
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 Group presentation March 2013 Page 5
Slide 6: Group strategy
Group strategy • Increase in company value RONOA >> WACC • Diversified group focused on mechanical and vehicle engineering • Strengthening of existing operating segments - Continuous product innovation - Operational efficiency with flexible structures - Internal growth and targeted acquisitions • Cl
Slide 7: Medium-term earnings targets
Medium-term earnings targets EBIT margin targets 2012 2011 2010 2009 2008 Kuhn Group 11 12.4 11.3 9.2 7.5 12.4 Bucher Municipal 8 9.3 7.0 7.3 3.9 7.6 Bucher Hydraulics 11 8.9 8.7 9.9 4.3 11.3 Emhart Glass 9 0.2* 4.5 1.2 4.0 8.4 Bucher Specials 9 8.1 6.1 4.6 5.4 10.7 Bucher Industries 9 8.8 8.1 7.4 5
Slide 8: Group at a glance
Group at a glance • Varied market environment - Favourable conditions in agricultural machinery - Stable demand for municipal vehicles and glass-forming machinery - Weakening of market for hydraulic systems in second half of 2012 - Stagnation in winemaking equipment - Currency effects remained margi
Slide 9: Group at a glance (continued)
Group at a glance (continued) • Continuity in investments - CHF 96 million for internal growth - CHF 43 million for small but important acquisitions in Bucher Hydraulics and Bucher Specials • Solid financial basis - High degree of independence thanks to CHF 480 million in cash and cash equivalents -
Slide 10: Net sales by division and region in 2012
Net sales by division and region in 2012 CHF 2 609 million Kuhn Group 47% Europe 58% Bucher Municipal 16% Switzerland 5% Bucher Hydraulics 15% Americas 22% Emhart Glass 14% Asia 9% Bucher Specials 8% Other 6% Group presentation March 2013 Page 10
Slide 11: Number of employees by region in 2012
Number of employees by region in 2012 Total 10’166 France 28% North America 15% China 12% Switzerland 9% Germany 7% UK 5% Sweden 4% Brazil 5% Netherlands 4% Italy 4% Australia 2% Other 5% Group presentation March 2013 Page 11
Slide 12: Key figures
Key figures CHF million % change 2012 2011 % %1) %2) Order intake 2 490 2 588 -3.8 -3.7 -6.9 Net sales 2 609 2 336 11.7 11.7 8.6 Order book 795 923 -13.8 -13.6 -14.6 Operating profit (EBITDA) 304 260 17.1 as % of net sales 11.7% 11.1% Operating profit (EBIT) 229 190 20.5 as % of net sales 8.8% 8.1%
Slide 13: Investing in the future
Investing in the future CHF million 2012 2011 % change Development costs 81 74 8.6 Capital expenditure 96 118 -18.4 Acquisitions 3 60 Group presentation March 2013 Page 13
Slide 14: Results by operating segment
Results by operating segment 2012 2011 CHF million EBIT EBIT margin EBIT EBIT margin Kuhn Group 152 12.4% 116 11.3% Bucher Municipal 39 9.3% 27 7.0% Bucher Hydraulics 36 8.9% 35 8.7% Emhart Glass 1 0.2% 15 4.5% Bucher Specials 17 8.1% 12 6.1% Other/consolidation -16 -15 Bucher Industries 229 8.8% 19
Slide 15: Net sales and number of employees
Net sales and number of employees CHF m Empl. 3500 12000 10383 3000 2789 9380 10000 2500 7618 7639 2609 8000 8176 2336 2000 2142 2034 6000 1500 4000 1000 500 2000 0 0 2008 2009 2010 2011 2012 Net sales Average number of employees during year Group presentation March 2013 Page 15
Slide 16: Net sales and results
Net sales and results CHF m CHF m Net sales Results 3000 2789 360 2609 2500 342 2336 300 2142 2034 304 2000 260 240 246 224 229 1500 180 190 190 1000 145 151 154 120 127 500 98 60 0 26 0 -500 -24 -60 2008 2009 2010 2011 2012 Profit for the year EBITDA EBIT Net sales Group presentation March 2013 Pag
Slide 17: Net operating assets (NOA) and RONOA after tax
Net operating assets (NOA) and RONOA after tax CHF m % 1200 60 52.0 1000 50 1114 41.8 970 800 891 849 40 828 35.4 37.2 600 30 31.9 18.5 17.0 16.8 400 20 12.4 200 10 1.5 0 0 2008 2009 2010 2011 2012 Net operating assets (4-q. average) as % of net sales RONOA Group presentation March 2013 Page 17
Slide 18: Shareholders' equity and return on equity
Shareholders‘ equity and return on equity CHF m % 1000 25 916 800 846 20 793 814 748 600 16.9 17.8 15 16.3 400 12.7 10 200 5 0 0 -3.0 -200 -5 2008 2009 2010 2011 2012 Shareholders' equity Return on equity Impairment charges: 2008 CHF 39 million, 2009 CHF 86 million Group presentation March 2013 Page
Slide 19: Operating free cash flow
Operating free cash flow CHF m Group presentation March 2013 Page 19
Slide 20: Net cash/debt and free cash flow
Net cash/debt and free cash flow Net cash/debt Free cash flow CHF m CHF m 201 200 181 200 150 110 150 100 100 50 1 19 50 0 0 -50 -72 -19 -50 -185 -100 -111 -118 -100 -139 -150 -150 -223 -185 -209 -200 -200 -250 -250 2008 2009 2010 1st half- 2nd half- 1st half- 2nd half- year 2011 year 2011 year 2012
Slide 21: Total assets and equity
Total assets and equity CHF m 2500 2248 2256 2125 2000 2068 1985 1500 1000 846 916 793 748 814 41% 37% 36% 500 38% 41% 0 2008 2009 2010 2011 2012 Total assets Equity Group presentation March 2013 Page 21
Slide 22: Shareholders' equity / Intangible assets
Shareholders‘ equity / Intangible assets CHF m 1000 916 846 800 793 814 748 600 400 200 89 174 75 131 165 60 135 53 159 73 0 2008 2009 2010 2011 2012 Shareholders' equity Intangible assets Thereof goodwill Group presentation March 2013 Page 22
Slide 23: Group outlook for 2013
Group outlook for 2013 • No fundamental change in economic environment • Highly indebted Western industrial economies continue to seek means to stimulate economic growth • Sustained growth in Asia and South America • Confidence in markets served by Bucher Industries: - Agricultural machinery: contin
Slide 24: Kuhn Group: Specialised agricultural machinery
Kuhn Group Specialised agricultural machinery Ploughing Tillage Seeding Fertilisation Manure spreaders Spraying Hay & forage Feed storage Bedding & feeding Landschaftspflege harvesting Group presentation March 2013 Page 24
Slide 25: Kuhn Group: Net sales and EBIT
Kuhn Group Net sales and EBIT CHF m CHF m 1400 210 1222 1200 1106 180 1026 1000 948 150 851 152 800 137 120 116 600 90 400 71 78 60 200 30 0 0 1) 2008 2009 2010 2011 2012 Net sales EBIT 1) Before impairment charges Group presentation March 2013 Page 25
Slide 26: Kuhn Group: Net sales and number of employees 2012
Kuhn Group Net sales and number of employees 2012 Net sales Number of employees CHF 1 222 million 4 495 employees Europe 65% France 56% Americas 30% North America 21% Asia 3% Brazil 10% Other 2% Netherlands 8% Other 5% Group presentation March 2013 Page 26
Slide 27: 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 28: 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 29: 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 March 2013 Page 29
Slide 30: Kuhn Group: World regional farm equipment market
Kuhn Group World regional farm equipment market Europe 37% North America 27% China 16% Central and South America 6% India 8% Japan 2% Other 4% Group presentation March 2013 Page 30
Slide 31: Kuhn Group: 2012 highlights
Kuhn Group 2012 highlights • Division sales pass one-billion euro mark for the first time • Outstanding profitability • Positive market trend - High prices for agricultural produce increased farmers’ incomes - Exceptional drought in the southern USA • Additional driver pushing up maize and wheat pri
Slide 32: Kuhn Group: Outlook for 2013
Kuhn Group Outlook for 2013 • Long-term prospects still good • Market environment still positive and stable at a high level - Favourable income situation for farmers expected to continue - Moderate increase in production costs at most farming enterprises - Good conditions in main markets of North/So
Slide 33: 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 March 2013 Page 33
Slide 34: Bucher Municipal: Net sales and EBIT
Bucher Municipal Net sales and EBIT CHF m CHF m 600 60 512 500 50 424 387 373 380 400 40 39 39 300 30 25 27 26 200 20 100 10 0 1) 2) 0 2008 2009 2010 2011 2012 Net sales EBIT 1) Before impairment charges 2) Before restructuring costs Group presentation March 2013 Page 34
Slide 35: Bucher Municipal: Net sales and number of employees 2012
Bucher Municipal Net sales and number of employees 2012 Net sales Number of employees CHF 424 million 1 429 employees Europe 67% UK 30% Switzerland 4% Australia 17% Australia 20% Switzerland 15% Asia 5% Latvia 11% Americas 4% Italy 10% Germany 6% Denmark 6% Other 5% Group presentation March 2013 Pag
Slide 36: 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 37: 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) Fayat Group (FR) * Elgin (USA) Dulevo (DE) Brock (DE) Tennant (USA) Epoke (DK) Acometis (FR) * Ravo,
Slide 38: Bucher Municipal: 2012 highlights
Bucher Municipal 2012 highlights • Record result, with EBIT margin of 9.3% • Smooth processing of the major order from the city of Moscow, with CHF 50 million contribution to sales • Maximum capacity utilisation in first half of 2012 • Demand stable overall at low level in Europe; no major tenders •
Slide 39: Bucher Municipal: Outlook for 2013
Bucher Municipal Outlook for 2013 • Since the record year of 2008, market volumes down by 30% • Stabilisation of demand at 2012 level, excluding Moscow order • No prospect of demand recovering in southern Europe • Division’s capacities aligned with current level of market • Sales, operating profit a
Slide 40: Bucher Hydraulics: Customised drive systems
Bucher Hydraulics Customised drive systems Agricultural Mining/ Wind energy Industrial Municipal Lift gates machinery tunnelling vehicles Construction Materials Marine/offshore Elevator High-voltage Dyna-Lift equipment handling technology switch gear Group presentation March 2013 Page 40
Slide 41: Bucher Hydraulics: Net sales and EBIT
Bucher Hydraulics Net sales and EBIT CHF m CHF m 497 500 100 399 407 371 400 80 320 300 56 60 37 200 35 36 40 100 14 20 0 0 1) 1) 2008 2009 2010 2011 2012 1) Before impairment charges Net sales EBIT Group presentation March 2013 Page 41
Slide 42: Bucher Hydraulics: Net sales and number of employees 2012
Bucher Hydraulics Net sales and number of employees 2012 Net sales Number of employees CHF 407 million 1 647 employees Europe 63% Germany 33% Switzerland 4% Switzerland 27% Americas 25% Americas 20% Asia 8% Italy 11% Asia 7% Other 2% Group presentation March 2013 Page 42
Slide 43: 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 44: 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 45: Bucher Hydraulics: Growth per market segment
Bucher Hydraulics Growth per market segment Sales index 250 200 150 100 50 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Hydraulics Engineering Bucher Hydraulics Source: VDMA Group presentation March 2013 Page 45
Slide 46: Bucher Hydraulics: 2012 highlights
Bucher Hydraulics 2012 highlights • Varied market environment - Western Europe: market positive in agricultural machinery and materials handling, weakening in construction machinery and industrial hydraulics - USA: general level of demand good - China: government reins in construction activity • Sli
Slide 47: Bucher Hydraulics: Outlook for 2013
Bucher Hydraulics Outlook for 2013 • Continued flattening of demand in Europe, except in agricultural machinery segment • Series production projects offset slowdown in Europe • Market environment in the USA still positive • China and India could recover • Significantly higher sales expected thanks t
Slide 48: 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 March 2013 Page 48
Slide 49: Emhart Glass: Net sales and EBIT
Emhart Glass Net sales and EBIT CHF m CHF m 500 50 418 400 35 367 40 345 304 300 259 30 200 15 20 12 8 9 100 10 0 0 1) 1) 2008 2009 2010 2011 2012 1) Before restructuring costs Net sales EBIT Group presentation March 2013 Page 49
Slide 50: Emhart Glass: Net sales and number of employees 2012
Emhart Glass Net sales and number of employees 2012 Net sales Number of employees CHF 367 million 2 027 employees Europe 35% China 56% Asia 41% Sweden 19% Americas 18% Americas12% Africa 5% Malaysia 5% Other 1% Switzerland 4% Other 4% Group presentation March 2013 Page 50
Slide 51: Emhart Glass: Market position
Emhart Glass Market position • World’s leading supplier of machinery, equipment and services for glass container manufacturers • Market share: 50% worldwide for glass forming machines and services; 25% worldwide for inspection systems • Main competitors: Owens-Illinois (USA), Saint Gobain (FR), Bott
Slide 52: Emhart Glass: World's leading machinery manufacturer
Emhart Glass World’s leading machinery manufacturer Hot End Cold End IS forming machine Competitors Refrac- Fore- Feeder NIS BIS AIS IS Ware Lehr Inspec- Palle- Wrap- tory hearth & shear handling tion tizing ping Emhart Glass Sanjin Bottero (IT) Heye (DE) Sklostroj (CZ) GPS (DE) BDF (IT) O-I (USA) C
Slide 53: Emhart Glass: Glass consumption per capita
Emhart Glass Glass consumption per capita The high correlation between GNI and glass consumption fosters growth in emerging markets Group presentation March 2013 Page 53
Slide 54: Emhart Glass: 2012 highlights
Emhart Glass 2012 highlights • Marked project-related fluctuations in capacity utilisation • Recovery after weak first quarter, with shift of emphasis towards growth markets in Asia, the Middle East and South America • Trend in growth markets towards simpler glass-forming machinery • Decline in orde
Slide 55: Emhart Glass: Outlook for 2013
Emhart Glass Outlook for 2013 • Market environment stable overall • Growing demand for simpler, mid-range machines in emerging economies • High level of capacity utilisation at customer plants benefits spare parts and service business • Initial savings exceed restructuring costs • Sales to reach sim
Slide 56: 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 Marc
Slide 57: Bucher Specials: Net sales and EBIT
Bucher Specials Net sales and EBIT CHF m CHF m 300 35 262 250 30 28 201 206 188 187 25 200 20 150 17 15 100 12 10 10 9 50 5 0 0 2008 2009 2010 2011 2012 Net sales EBIT Group presentation March 2013 Page 57
Slide 58: Bucher Specials: Net sales and number of employees 2012
Bucher Specials Net sales and number of employees 2012 Net sales Number of employees CHF 206 million 506 employees France 58% Europe 35% Switzerland 30% Switzerland 42% Chile 6% Americas 9% Italy 3% Africa 9% Other 3% Asia 4% Other 1% Group presentation March 2013 Page 58
Slide 59: 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 45% worldwide • Main competitors: Pera (FR), Della Toffola (IT), Diemme (IT), Velo (IT) and other Italian and
Slide 60: 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 March 2013 Page 60
Slide 61: Vaslin: Wine production
Bucher Vaslin Wine production northern hemisphere southern hemisphere Million hl CAGR Million hl CAGR 50 35% 50 35% 45 30% 45 30% 40 25% 40 25% 35 20% 35 20% 30 15% 30 15% 0.9% 8.1% 6.5% 25 10% 25 10% 6.9% 4.3% 0.0% 2.0% 20 5% 20 1.1% 5% -0.8% 0.6% -4.4% -3.5% 15 -4.1% -3.1% -4.1% 0% 15 0% -3.7% 10
Slide 62: 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 63: 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 64: Unipektin: Apple production
Bucher Unipektin Apfelproduktion Million tonnes 80 Others 70 South America 60 Northern America 50 Southern Europe 40 30 Western Europe 20 Eastern Europe 10 Southern Asia 0 Eastern Asia 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Group presentation March 2013 Seite 64
Slide 65: 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 and high quality of service • Wide range of tractors (New Holland, Case, Steyr), attachments (Kuhn) and wh
Slide 66: 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 67: Bucher Specials: 2012 highlights
Bucher Specials 2012 highlights • Stable market environment overall • Winemaking equipment - Subdued demand in Western Europe, further decline in France - Buoyant demand in USA and southern hemisphere - Annual production lower than consumption, led to reduction in inventories • Fruit juice processin
Slide 68: Bucher Specials: Outlook for 2013
Bucher Specials Outlook for 2013 • Market outlook for the independent businesses - Backlog of deferred investments in winemaking equipment - Solid development of business with equipment for fruit juice processing and dewatering sewage sludge - Acquisition of Filtrox Engineering brings entry into bee
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