Bucher Industries AG · SIX:BUCN
Bucher Industries — FY2009 Earnings Presentation
56 slides from Bucher Industries's earnings presentation, Mar 16, 2010
Slide 1: Annual press conference and annual analyst conference
Annual press conference and annual analyst conference 16 March 2010 Annual press conference and annual analyst conference 1616 March March 2010 2010 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 16 March 2010 Page 2
Slide 3: Group at a glance
Group at a glance • 2009 dominated by the economic crisis - Sales down by 23%, organically by 25% - From coping with growth to coping with the crisis - Exceptional operational challenges • Economic slump necessitated goodwill impairment charges of CHF 86 million • All divisions posted an operating p
Slide 4: Group at a glance (continued)
Group at a glance (continued) • Crisis seen as an opportunity, strengthening the Group - Improved cost structure: employment costs reduced by CHF 88 million and other operating expenses by CHF 75 million - Expenditure of CHF 76 million on R&D with no cuts - Acquisition of balers, bale wrappers and d
Slide 5: Key figures
Key figures CHF million 2009 2008 % change Order intake 1 797 2 792 -35.6 Net sales 2 142 2 789 -23.2 Order book 507 843 -39.9 Operating profit (EBITDA) 190 342 -44.5 as % of net sales 8.9% 12.2% Operating profit (EBIT) before impairment 112 276 -59.5 as % of net sales 5.2% 9.9% Operating profit (EB
Slide 6: Net sales by division and region in 2009
Net sales by division and region in 2009 CHF 2 142 million Kuhn Group 44% Europe 65% Bucher Municipal 21% Switzerland 6% Bucher Hydraulics 15% Americas 15% Emhart Glass 14% Asia 8% Bucher Process 6% Other 6% Annual press conference and annual analyst conference 16 March 2010 Page 6
Slide 7: Employee numbers
Employee numbers 2009 2008 % change At 31 December 7 183 8 373 -14.2 Average during year 7 618 8 176 -6.8 Excluding acquisitions: At 31 December 6 929 8 373 -17.2 Average during year 7 311 8 176 -10.6 Annual press conference and annual analyst conference 16 March 2010 Page 7
Slide 8: Investing in the future
Investing in the future CHF million 2009 2008 % change Development costs 76 78 -2.8 Capital expenditure on property, plant 59 131 -55.3 and equipment Acquisitions 173 150 15.3 Annual press conference and annual analyst conference 16 March 2010 Page 8
Slide 9: Our businesses
Our businesses Kuhn Group Bucher Municipal Bucher Hydraulics Emhart Glass Bucher Specials World’s leading World leading supplier International leader in World’s leading Independent businesses: manufacturer of of municipal vehicles the design and manu- supplier of advanced winemaking equipment; speci
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 16 March 2010 Page 10
Slide 11: Kuhn Group Key figures
Kuhn Group Key figures CHF million 2009 2008 % change Order intake 735 1 224 -39.9 Net sales 948 1 106 -14.2 Order book 246 432 -43.1 Operating profit (EBITDA) 109 157 -30.3 as % of net sales 11.5% 14.2% Operating profit (EBIT) before impairment 71 137 -48.1 as % of net sales 7.5% 12.4% Operating pr
Slide 12: Kuhn Group 2009 highlights
Kuhn Group 2009 highlights • Massive slump in business activity - Falling prices for milk, meat and other agricultural produce - Farmers’ lower income caused uncertainty - All regions affected, with Eastern Europe coming to a virtual standstill - Goodwill impairment charges of CHF 64 million • Manpo
Slide 13: Kuhn Group Outlook for 2010
Kuhn Group Outlook for 2010 • No rapid market recovery expected - Continued pressure on farmers’ income - Destocking heightening the pricing pressure - Reluctance in lending expected to continue • North America should have bottomed out; the main European markets only likely to reach this point in th
Slide 14: Bucher Municipal: Sweepers and winter maintenance equipment
Bucher Municipal Sweepers and winter maintenance equipment Compact sweepers Truck mounted sweepers Spreaders Snow blowers Refuse collection vehicles Annual press conference and annual analyst conference 16 March 2010 Page 14
Slide 15: Bucher Municipal Key figures
Bucher Municipal Key figures CHF million 2009 2008 % change Order intake 437 528 -17.4 Net sales 452 579 -21.9 Order book 91 115 -20.5 Operating profit (EBITDA) before restructuring 39 51 -24.4 as % of net sales 8.5% 8.8% Operating profit (EBIT) before restructuring 1) 30 38 -19.9 as % of net sales
Slide 16: Bucher Municipal 2009 highlights
Bucher Municipal 2009 highlights • Rapid adjustment to lower volume • Continued product development: - Launch of a new 1m3 compact sweeper on the market in early 2010 - Prototype test for new generation of truck mounted sweepers - Prototype of a hydrogen fuel cell powered compact sweeper • Snowy win
Slide 17: Bucher Municipal Outlook for 2010
Bucher Municipal Outlook for 2010 • Bucher Landtechnik AG (2009: sales of CHF 66 million) transferred to Bucher Specials • Demand situation remaining tense - Great uncertainty surrounding effects of high national debt and anticipated lower tax revenues - Possible impetus from economic stimulus packa
Slide 18: Bucher Process: Wine and fruit juice production equipment
Bucher Process Wine and fruit juice production equipment Destemmers Pneumatic tank presses CF filtration systems Reverse osmosis systems Mills Hydraulic presses Ultrafiltration systems Evaporators Annual press conference and annual analyst conference 16 March 2010 Page 18
Slide 19: Bucher Process Key figures
Bucher Process Key figures CHF million 2009 2008 % change Order intake 116 168 -30.6 Net sales 122 195 -37.5 Order book 33 40 -17.3 Operating profit (EBITDA) 7 26 -73.9 as % of net sales 5.6% 13.4% Operating profit (EBIT) 5 24 -80.5 as % of net sales 3.9% 12.3% Number of employees at 31 December 459
Slide 20: Bucher Process 2009 highlights
Bucher Process 2009 highlights • Slump in demand in the wake of the economic slump - Wine producers waiting for the EU subsidy programme to be released - Fruit juice producers suffering from high inventories and low prices - No large-scale projects at all • Closure of manufacturing facilities in Ita
Slide 21: Bucher Hydraulics: Custom drive solutions
Bucher Hydraulics Custom drive solutions Agricultural Mining / tunnelling Wind energy Mechanical Municipal machinery engineering equipment Construction Materials handling Elevator hydraulics Marine / offshore Power engineering equipment Annual press conference and annual analyst conference 16 March
Slide 22: Bucher Hydraulics Key figures
Bucher Hydraulics Key figures CHF million 2009 2008 % change Order intake 277 473 -41.5 Net sales 320 497 -35.7 Order book 46 85 -46.6 Operating profit (EBITDA) 34 76 -55.6 as % of net sales 10.6% 15.4% Operating profit (EBIT) before impairment 14 56 -75.7 as % of net sales 4.3% 11.3% Operating prof
Slide 23: Bucher Hydraulics 2009 highlights
Bucher Hydraulics 2009 highlights • Adjustment to a substantially lower volume - Rapid slump in demand in all segments - Reduction of manpower by 20%; closure of the French manufacturing facility - Supply capability maintained by the introduction of short-time working • Integration and expansion of
Slide 24: Bucher Hydraulics Outlook for 2010
Bucher Hydraulics Outlook for 2010 • The low expected to have bottomed out at the end of 2009 - North America: increase in demand in late 2009 - Western Europe: positive signs in early 2010 - Orders with short delivery times due to customers’ low inventory levels - Demand rising in the energy sector
Slide 25: Emhart Glass: Glass container manufacturing equipment
Emhart Glass Glass container manufacturing equipment Gob forming Glas 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 16
Slide 26: Emhart Glass Key figures
Emhart Glass Key figures CHF million 2009 2008 % change Order intake 232 399 -41.7 Net sales 304 418 -27.4 Order book 92 171 -46.6 Operating profit (EBITDA) 21 44 -52.0 as % of net sales 7.0% 10.6% Operating profit (EBIT) 12 35 -65.1 as % of net sales 4.0% 8.4% Number of employees at 31 December 871
Slide 27: Emhart Glass 2009 highlights
Emhart Glass 2009 highlights • Abrupt decline in capital spending - Economic slump slowed down sales of glass containers - Insufficient capacity utilisation in the glass container industry - Projects scaled back, deferred and cancelled • Excess capacities of glass container manufacturers reduced sal
Slide 28: Emhart Glass Outlook for 2010
Emhart Glass Outlook for 2010 • Limited visibility in the glass container industry - Glass container manufacturers’ capacity utilisation remaining unsatisfactory - Few capital investment projects in the first half of the year, better outlook for the second half - Financing of capital-intensive proje
Slide 29: Bucher Specials: Independent businesses
Bucher Specials Independent businesses Fruit juice processing systems Agricultural distributorship Winemaking equipments and drying equipments for Switzerland Horizontal grape presses Hydraulic presses New Holland tractor Micro-filtration systems Filtration systems Round balers Annual press conferen
Slide 30: Bucher Specials Key figures
Bucher Specials Key figures CHF Mio. 2009 pro forma Order intake 182.1 Net sales 187.7 Order book 42.9 Operating profit (EBITDA) 12.4 as % of net sales 6.6% Operating profit (EBIT) 10.0 as % of net sales 5.4% Number of employees at 31 December 506 Average number of employees during year 537 Annual p
Slide 31: Bucher Specials Outlook for 2010
Bucher Specials Outlook for 2010 • Winemaking equipment - Marked increase in sales fuelled by EU subsidies - Main markets of France and Italy should see brisk demand - Modernisation of customers’ facilities with product innovations • Fruit juice equipment expects a difficult year without large-scale
Slide 32: Group outlook for 2010
Group outlook for 2010 • Demand not expected to recover fast - A subdued year anticipated for agricultural machinery in Europe - Municipal vehicles facing great uncertainty surrounding effects of national debt and low tax revenues - Hydraulic components expect increased demand - Glass forming machin
Slide 33: Financial report 2009
Financial report 2009 Annual press conference and annual analyst conference 1616 March March 2010 2010 Page 33
Slide 34: Order book, order intake and net sales
Order book, order intake and net sales .4% CAGR net sales 2 CHF m CHF m 2792 2800 2704 1400 2789 2500 1200 2163 2459 2142 2200 1000 1947 1900 2087 871 800 1948 843 1600 1797 600 605 1300 524 507 400 1000 200 700 0 2005 2006 2007 2008 2009 Order book Order intake Net sales Annual press conference and
Slide 35: From coping with growth to coping with the crisis
From coping with growth to coping with the crisis currency adjusted +19.5% Net sales 25% 20% +3.5% -6.1% 15% +16.0% currency adjusted 10% -18.9% +13.4% 5% 0% -5% -23.2% -10% -24.8% -15% +5.9% -4.3% -20% -25% 2008 2009 Internal Acquisitions Currency Total Annual press conference and annual analyst co
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 788 936 745 908 792 800 800 843 662 669 670 785 638 617 600 600 648 470 508 416 403 616 522 507 563 521 493 400 400 442 200 200 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 -23% -45% -60% 2789 342 276 2142 190 112 1) Net sales EBITDA EBIT 2009 2008 1) before impairment Annual press conference and annual analyst conference 16 March 2010 Page 37
Slide 38: Consolidated income statement (1)
Consolidated income statement (1) CHF million 2009 2008 Change in %-points Net sales 2 142 100.0% 2 789 100.0% Changes in inventories of finished goods and work in progress -121 -5.6% 78 2.8% Raw materials and consumables -1 038 -48.4% -1 574 -56.5% +8.1 Employment costs -536 -25.0% -624 -22.4% -2.6
Slide 39: Consolidated income statement (2)
Consolidated income statement (2) CHF million 2009 2008 Change in % Operating profit (EBITDA) 190 342 -44.5 Depreciation -61 -55 Amortisation -17 -11 Operating profit (EBIT) 112 276 -59.5 before impairment Impairment -86 -30 Operating profit (EBIT) 26 246 -89.5 Net financial items -19 -29 Income tax
Slide 40: Net financial items
Net financial items CHF million 2009 2008 +/- Net interest expense -16 -9 -7 Net gain on short-term investments 7 11 -4 Foreign exchange gains and losses -7 -23 16 Impairment on associates - -9 9 Other financial items -3 1 -4 Net financial items -19 -29 10 Annual press conference and annual analyst
Slide 41: Foreign exchange result
Foreign exchange result CHF million 2009 2008 +/- Foreign currency hedges in EBIT 8 - 8 Foreign exchange gains/losses in net financial items -7 -23 16 Total foreign exchange gains and losses 1 -23 24 Annual press conference and annual analyst conference 16 March 2010 Page 41
Slide 42: Income tax
Income tax CHF million 2009 2008 +/- Result before tax 7 217 -210 Income tax -31 -72 -41 Tax rate before impairment 33.8% 33.0% Annual press conference and annual analyst conference 16 March 2010 Page 42
Slide 43: Net operating assets (NOA) and NOA in % of net sales
Net operating assets (NOA) and NOA in % of net sales CHF m % 1000 50 900 45 923 -146 800 40 33.1 41.9 700 777 35 28.7 28.1 897 600 25.8 30 500 559 538 692 25 400 20 300 15 200 10 100 5 0 0 1) 2005 2006 2007 2008 2009 2009 Net operating assets (closing date) In % of net sales 1) acquisition adjusted
Slide 44: NOA and RONOA before impairment
NOA and RONOA before impairment CHF m % 1200 30 23.8 1155 1000 25 20.7 800 20 14.8 14.3 895 600 687 15 567 605 400 6.3 10 200 5 0 0 2005 2006 2007 2008 2009 Net operating assets (4q-average) RONOA Annual press conference and annual analyst conference 16 March 2010 Page 44
Slide 45: Cash flow statement
Cash flow statement CHF million 2009 2008 +/- Profit for the year -24 145 -169 Depreciation and amortisation 78 66 12 Change in provisions -4 -7 3 Change in working capital 105 -110 215 Other monetary positions -2 -30 28 Impairment 86 39 47 Net cash from operating activities 239 103 136 Annual press
Slide 46: Operating free cash flow / Free cash flow
Operating free cash flow / Free cash flow CHF million 2009 2008 +/- Net cash flow from operating activities 239 103 136 Purchases of property, plant and equipment (net) -55 -116 61 Purchases of intangible assets (net) -1 -2 1 Operating free cash flow 183 -15 198 Changes in financial assets and short
Slide 47: Net liquidity and free cash flow
Net liquidity and free cash flow Net liquidity Free cash flow CHF m CHF m 254 320 280 240 210 160 140 173 164 80 48 70 69 104 0 0 -80 2 1 -111 -118 -70 -145 -160 -253 -140 -271 -240 -210 -320 -368 -280 -400 -350 2005 2006 2007 1st half- 2nd half- 1st half- 2nd half- year 2008 year 2008 year 2009 yea
Slide 48: Shareholders' equity / Intangible assets
Shareholders’ equity / Intangible assets CHF m 1000 873 846 793 725 800 639 600 400 131 165 89 200 79 47 62 45 79 61 60 0 2005 2006 2007 2008 2009 Shareholders' equity Intangible assets Thereof goodwill Annual press conference and annual analyst conference 16 March 2010 Page 48
Slide 49: Shareholders' equity and return on equity (ROE) before impairment
Shareholders‘ equity and return on equity (ROE) before impairment CHF m % 1000 25 800 21.4 20 21.0 600 15 14.8 14.0 873 885 918 400 10 725 639 200 6.8 5 0 0 2005 2006 2007 2008 2009 Shareholders' equity Return on equity Annual press conference and annual analyst conference 16 March 2010 Page 49
Slide 50: Selected financial key figures
Selected financial key figures 2009 2008 Equity margin 37.3% 40.9% Equity margin (excl. excess liquidity of CHF 300 million) 43.4% Net tangible worth CHF million 732 757 (equity – goodwill) Fixed-assets-to-net-worth ratio 212% 181% Net liquidity CHF million -118 -111 Debt payback period 0.6 0.3 (net
Slide 51: Summary of financial review
Summary of financial review • High liquidity and solid balance sheet despite the crisis year - CHF 505 million in liquid assets and CHF 440 million in available committed credit facilities - Equity ratio of 37%; a reduction of CHF 300 million in surplus liquid assets would result in an equity ratio
Slide 52: Remuneration report 2010 annual general meeting
Remuneration report 2010 annual general meeting Annual press conference Bilanzmedien- und Analystenkonferenz and annual analyst 16. März conference 2010 16 March 2010 Page 52
Slide 53: 2009 remuneration report
2009 remuneration report • Board of directors: non-performance-related remuneration - Board reduced to 7 members - In view of the difficult financial year, the directors forwent payment of one third of their remuneration - Fixed base fee now paid half in cash and half in shares - Total remuneration
Slide 54: Board of directors' proposals
Board of directors’ proposals • Dividend policy - Steady payout ratio of between 30% and 35% - Assessment criteria for determining the dividend: reporting year, outlook for the current year and the Group’s financial position • 2010 dividend proposed for the 2009 financial year - CHF 2.00 per share -
Slide 55: Dividend / payout ratio
Dividend / payout ratio CHF m % 60 60 50 53 50 48 40 32.7 40 30.9 25.8 27.7 30 30 26 20 22 20 21 10 n.a. 10 0 0 2005 2006 2007 2008 2009 1) 1) Dividend Payout ratio Proposed by the board of directors Annual press conference and annual analyst conference 16 March 2010 Page 55
Slide 56: Financial calendar for 2010/2011
Financial calendar for 2010/2011 Annual general meeting 15 April 2010 Dividend payment 22 April 2010 Release of first quarter 2010 group sales 27 April 2010 Interim report 2010 10 August 2010 Release of third quarter 2010 group sales 27 October 2010 Release of 2009 group sales 2 February 2011 Annual