Bucher Industries Ag · SIX:BUCN
Bucher Industries — Investor Presentation (July 2008)
66 slides from Bucher Industries's investor presentation, July 2008
Slide 1: Group presentation
Group presentation Group presentation July 2008 page 1
Slide 2: Technology group founded in 1807
Technology group founded in 1807 • Group specialised in mechanical and vehicle engineering • Strategy of technology and market leadership - product innovation - sales network and high service levels - good price/performance ratios for customers - taking advantage of industry consolidation • Markets
Slide 3: Five divisions
Five divisions Kuhn Group Bucher Municipal Bucher Process Bucher Hydraulics Emhart Glass Machinery for hay and Municipal vehicles for Machinery and equip- Custom hydraulic drive Machinery, com- silage making, cleaning and removing ment for wine and fruit and control systems for ponents, systems and
Slide 4: No. 1 market positions
No. 1 market positions • Kuhn Group worldwide in fodder harvesting machinery and feed mixer • Bucher Municipal in Europe in street sweepers • Bucher Process worldwide in fruit juice and wine production plants • Bucher Hydraulics in Europe in special segments of hydraulics • Emhart Glass worldwide in
Slide 5: Manufacturing sites worldwide
Manufacturing sites worldwide Group presentation July 2008 page 5
Slide 6: Group and division earnings targets
Group and division earnings targets EBIT margin in % Targets 2007 2006 2005 2004 2003 Kuhn Group 11 11.6 5.3 8.4 8.3 7.6 Bucher Municipal 8 6.6 5.4 4.2 2.2 0.5 Bucher Process 9 10.9 7.6 5.9 4.1 -2.3 Bucher Hydraulics 11 15.1 12.6 9.9 8.6 3.9 Emhart Glass 9 7.9 7.0 5.2 6.9 6.3 Bucher Industries 9 9.3
Slide 7: Net sales by divisions and regions 2007
Net sales by divisions and regions 2007 CHF 2 459 m Kuhn Group 38% Europe 67% Bucher Municipal 22% Switzerland 5% Emhart Glass 17% Americas 16% Bucher Hydraulics 16% Asia 7% Bucher Process 7% Other 5% Group presentation July 2008 page 7
Slide 8: Number of employees by region 2007
Number of employees by region 2007 France 34% Americas 16% Switzerland 13% Germany 10% United Kingdom 7% Sweden 6% Italy 5% Australia 4% Asia 3% Other 2% Group presentation July 2008 page 8
Slide 9: Net sales and number of employees
Net sales and number of employees CHF m Empl. 2459 2500 10000 2000 7261 8000 1500 6000 1000 4000 500 2000 0 0 2003 2004 2005 2006 2007 Net sales Number of employees Group presentation July 2008 page 9
Slide 10: Net sales and results 2007
Net sales and results 2007 CHF m CHF m 3000 286 300 2459 2500 250 2087 1948 229 2000 1641 200 1535 185 1500 166 171 150 148 124 118 124 91 1000 100 59 96 86 500 50 54 36 0 0 2003 2004 2005 2006 2007 Net sales EBITDA EBIT Profit for the year Group presentation July 2008 page 10
Slide 11: Group at a glance
Group at a glance • Best result ever in the company’s 200-year history • All divisions reach or exceed a 14% return on net operating assets after tax • Group sales up 18% to CHF 2.5 billion • High organic growth of 15% • Flexible organisation generates sales volume with existing infrastructure • Pro
Slide 12: Group at a glance (continued)
Group at a glance (continued) • Marked improvement in profitability - EBITDA margin up from 8.8% to 11.6% - EBIT margin up from 5.9% to 9.3% - RONOA after tax up from 14.3% to 23.8% • Divisions strengthened - Bucher Hydraulics: by Monarch Hydraulics in the USA - Emhart Glass: by ICS / Inex and R&D c
Slide 13: Key figures
Key figures CHF million 2007 2006 % Change Order intake 2 704 2 163 25.0 Net sales 2 459 2 087 17.8 Order book 871 605 44.0 Operating profit (EBITDA) 286 185 54.9 as % of net sales 11.6% 8.8% Operating profit (EBIT) 229 124 85.4 as % of net sales 9.3% 5.9% Profit for the year 171 96 79.1 as % of net
Slide 14: Investment for the future
Investment for the future CHF million 2007 2006 % Change Product development 71 65 8.9 Capital expenditure on PPE 128 58 121.0 Group presentation July 2008 page 14
Slide 15: Division results
Division results 2007 2006 CHF million EBIT EBIT-margin EBIT EBIT-margin Kuhn Group 108 11.6% 42 5.3% Bucher Municipal 37 6.6% 29 5.4% Bucher Process 19 10.9% 11 7.6% Bucher Hydraulics 59 15.1% 39 12.6% Emhart Glass 33 7.9% 23 7.0% Other/consolidation -27 -20 Bucher Industries 229 9.3% 124 5.9% Grou
Slide 16: Kuhn Group: Specialised agricultural machinery
Kuhn Group Specialised agricultural machinery Ploughing Soil preparation Seeding Fertilisation Manure spreaders Spraying Landscape Shredding Hay & silage making Bedding & feeding maintenance Group presentation July 2008 page 16
Slide 17: Kuhn Group: Net sales and EBIT
Kuhn Group Net sales and EBIT CHF m CHF m 1000 150 900 135 800 120 700 105 600 90 500 75 400 60 300 45 200 30 100 15 0 0 2003 2004 2005 2006 2007 Net sales EBIT Group presentation July 2008 page 17
Slide 18: Kuhn Group: Net sales and number of employees 2007
Kuhn Group Net sales and number of employees 2007 Net sales Number of employees CHF 929 m 2 956 persons Europe 72% France 69% Americas 24% USA 16% Asia 2% Brazil 11% Other 2% Other 4% Group presentation July 2008 page 18
Slide 19: 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 20: Kuhn Group: Complete product range under one brand
Kuhn Group Complete product range under one brand Competitors fodder harvesting hedge feed soil equipment seeders sprea- spray- trac- harvesters mowers tedders rakes balers cutters mixers animated non-animated drilling precision ders ers tors selfpropelled Kuhn Group John Deere CNH AGCO Claas Renaul
Slide 21: Kuhn Group: World market for agricultural machinery
Kuhn Group World market for agricultural machinery 2005 2015 Total USD 42 billion Total USD 45 billion Western Europe 40% Western Europe 32% North America 30% North America 27% Eastern Europe 9% Eastern Europe 12% South America 8% South America 12% China 3% China 5% Other 10% Other 12% Group present
Slide 22: Kuhn Group: Highlights in 2007
Kuhn Group Highlights in 2007 • 19% sales growth • Order intake up 30%, exceeding CHF 1 billion for the first time • All geographical markets contributed to the growth • Successful transfer of seed drill production • One-off gains of approx. CHF 9 million from sale of the Kuhn Nodet property, and un
Slide 23: Kuhn Group: Outlook for 2008
Kuhn Group Outlook for 2008 • Continuing favourable market environment • Higher prices for agricultural products and increasing bioenergy production to spur capital spending by farmers • “Food against energy” triggering policy debate • Weakness of the US dollar against the euro weighing on operating
Slide 24: 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 Group presentation July 2008 page 24
Slide 25: 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 2003 2004 2005 2006 2007 Net sales EBIT Group presentation July 2008 page 25
Slide 26: Bucher Municipal: Net sales and number of employees 2007
Bucher Municipal Net sales and number of employees 2007 Net sales Number of employees CHF 557 m 1 508 persons Europe 64% Great Britain 30% Switzerland 16% Switzerland 21% Australia 17% Australia 13% Germany 13% Asia 4% Italy 7% Americas 3% Other 12% Group presentation July 2008 page 26
Slide 27: Bucher Municipal: Market position
Bucher Municipal Market position • Europe’s leading manufacturer of compact and truck mounted sweepers, large snow removal equipment for roads and airports • Market share in Europe: compact sweepers 35% truck-mounted sweepers 60% • Complete product line for municipal applications • Main competitors:
Slide 28: Bucher Municipal: Complete product range
Bucher Municipal Complete product range Competitors Sweepers Airport Spreaders 1m3 2m3 4m3 5m3 6m3 8m3 SB SS RWS mounted towed Bucher (CH) Johnston (UK) Schmidt (DE) Boschung (CH) Hako (DE) Aebi MFH (CH) Faun (DE) Elgin (USA) Scarab (UK) Epoke (DK) Acometis (FR) SB = snow blowers SS = snow sweepers
Slide 29: Bucher Municipal: Highlights in 2007
Bucher Municipal Highlights in 2007 • Market recovery after several years of stagnation • Major orders for sweepers and airport equipment • High public tax revenues support capital spending needs • Continued expansion of the Latvian assembly plant • New generations of sweepers on track, providing ec
Slide 30: Bucher Municipal: Outlook for 2008
Bucher Municipal Outlook for 2008 • Stable market environment expected to continue - Stable demand in principal markets - Usual start-of-year uncertainties about large-scale contracts - Mild winter affecting spare parts sales • Integration of Gmeiner and realisation of synergies in the winter mainte
Slide 31: 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 Group presentation July 2008 page 31
Slide 32: Bucher Process: Net sales and EBIT
Bucher Process Net sales and EBIT CHF m CHF m 200 35 180 30 160 25 140 120 20 100 15 80 10 60 5 40 20 0 0 -5 2003 2004 2005 2006 2007 Net sales EBIT Group presentation July 2008 page 32
Slide 33: Bucher Process: Net sales and number of employees 2007
Bucher Process Net sales and number of employees 2007 Net sales Number of employees CHF 174 m 514 persons Europe 69% France 71% Switzerland 6% Switzerland 17% Americas 11% Italy 4% Asia 9% Americas 3% Other 5% Others 5% Group presentation July 2008 page 33
Slide 34: Bucher Process: Market position
Bucher Process Market position • World market leader in fruit, berry and vegetable juice processing equipment • World market leader in wine making equipment • Market share: 35% to 50% worldwide • Development of a new business segment for municipal sludge dewatering • Main competitors: Flottweg (DE),
Slide 35: Bucher Process: Leading worldwide position
Bucher Process Leading worldwide position Wine production Competitors Reception Crushing Pressing Fermentation Filtration Filling Bucher Process Pera (FR) Diemme (IT) Velo (IT) Della/Toffola (IT) Gai (IT) Juice production Competitors Reception Milling Mash Dejuicing Pasteuri- Filtration Adsorp- Evap
Slide 36: Bucher Process: World production of wine
Bucher Process World production of wine million hl 400 France 19% 350 Italy 17% 295 300 261 265 300 Spain 14% 250 rest of Europe 20% 200 Americas 16% 150 Asia 5% 100 Oceania 5% 50 Africa 4% 0 prov. Forecast 1976- 1981- 1986- 1991- 1996- 2002 2003 2004 1980 1985 1990 1995 2000 2005 Group presentation
Slide 37: Bucher Process: World apple production 1960 - 2006
Bucher Process World apple production 1960 - 2006 70 60 50 40 other 30 South America 20 Americas Asia 10 Europe 0 1960 1970 1980 1990 2000 2006 2006 juice production Juice production: approx. 70% concentrate, 20% fresh juice, 10% cider Group presentation July 2008 page 37
Slide 38: Bucher Process: Highlights in 2007
Bucher Process Highlights in 2007 • Buoyant market conditions - Recovery of the French wine production market - Wine consumption over wine production for the first time in a long time - Higher prices for quality wines, apples and apple juice concentrate • Major orders from the UK and China for equip
Slide 39: Bucher Process: Outlook for 2008
Bucher Process Outlook for 2008 • Demand expected to remain strong due to stable wine and apple prices at a high level • Major orders from the UK and China will favourably impact sales and operating profit • Realistic prospects of new orders for sludge dewatering equipment • Sales and operating prof
Slide 40: 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 Group presentation July 2008 page 40
Slide 41: Bucher Hydraulics: Net sales and EBIT
Bucher Hydraulics Net sales and EBIT CHF m CHF m 400 80 300 60 200 40 100 20 0 0 2003 2004 2005 2006 2007 Net sales EBIT Group presentation July 2008 page 41
Slide 42: Bucher Hydraulics: Net sales and number of employees 2007
Bucher Hydraulics Net sales and number of employees 2007 Net sales Number of employees CHF 387 m 1 259 persons Europe 79% Switzerland 38% Switzerland 6% Germany 34% Asia 9% Italy 15% Americas 6% Asia 6% Other 7% Group presentation July 2008 page 42
Slide 43: Bucher Hydraulics: Market position
Bucher Hydraulics Market position • Leading specialist in mobile, industrial and elevator hydraulics across Europe • Market share: 10% to 20% in specialised areas of hydraulic engineering • Focused on custom solutions • Main competitors: Bosch-Rexroth (DE), Sauer Danfoss (USA), Parker Hannifin (USA)
Slide 44: Bucher Hydraulics: Leading european position
Bucher Hydraulics Leading european position Pumps Valves Motors & Accessoires 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- (Cetop) spool
Slide 45: Bucher Hydraulics: Growth hydraulics and engineering
Bucher Hydraulics Growth hydraulics and engineering Revenue index 650 600 550 500 450 400 350 300 250 200 150 100 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 Hydraulics Engineering Bucher Hydraulics Source: VDMA Group presentation July 2008 page 45
Slide 46: Bucher Hydraulics: Highlights in 2007
Bucher Hydraulics Highlights in 2007 • Very high demand in all key market segments • Real boom in power engineering in China and in safety applications for mobile cranes • Capacity limits partly exceeded, targeted expansion started • High production flexibility, sometimes in provisional buildings •
Slide 47: Bucher Hydraulics: Outlook for 2008
Bucher Hydraulics Outlook for 2008 • No foreseeable change in high demand except in the USA • Expansion of application engineering and technical sales network • New production shops in Frutigen and Neuheim and selective automation in other plants • Development and expansion of Bucher Hydraulics Nort
Slide 48: Emhart Glass: Machinery glass container production
Emhart Glass Machinery glass container production Gob forming Glas forming machine Ware handling Inspection Furnace Forehearth Gob forming Palletizing Forming machine Lehr Lehr Inspection Ware handling Glass container manufacturing process Group presentation July 2008 page 48
Slide 49: 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 2003 2004 2005 2006 2007 Net sales EBIT Group presentation July 2008 page 49
Slide 50: Emhart Glass: Net sales and number of employees 2007
Emhart Glass Net sales by and number of employees 2007 Net sales Number of employees CHF 420 m 1 009 persons Europe 48% Sweden 42% Americas 26% Americas 34% Asia 23% Asia 8% Switzerland 7% Africa 3% Germany 3% Italy 3% Other 3% Group presentation July 2008 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: 45% 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: Worldwide leading manufacturer
Emhart Glass Worldwide leading manufacturer Hot End Cold End IS forming machine Competitors Batch Melter Fore- Feeder NIS AIS IS high IS IS Ware Lehr In- Palle- Wrap- char- (Furnace) hearth & shear tech stan- low hand- spec- tizing ping ger dard tech ling tion Emhart Glass Bottero (IT) BDF (IT) O-I
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 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 54: Emhart Glass: Highlights in 2007
Emhart Glass Highlights in 2007 • Shortage of glass containers worldwide • Rising prices for high-quality glass containers • High capital expenditure on modernisation and new facilities • Rise to become market leader in inspection machines through the acquisition of ICS / Inex, USA • Very high capac
Slide 55: Emhart Glass: R&D centre in 2007
Emhart Glass R&D centre in 2007 • CHF 22 million investment in technology leadership - Optimisation of glass container manufacturing process - Acceleration of product time-to-market with in-house testing facility - Better and faster verification of tempered glass project - Capability to perform clie
Slide 56: Emhart Glass: Outlook for 2008
Emhart Glass Outlook for 2008 • Good market conditions continuing at a very high level • Concentration of inspection machine production in Elmira, NJ and sales and engineering in Clearwater, FL • Expansion of low-cost assembly facility in Malaysia • New standard IS glass forming machine for Eastern
Slide 57: Group's short- to medium-term strategy
Group’s short- to medium-term strategy • Strengthening the existing five divisions by gearing measures towards sustained achievement of group targets • Concentrating on improving operational efficiency - Growth in sales and profit - EBIT margin as the key indicator of operating performance - RONOA a
Slide 58: Group outlook for 2008
Group outlook for 2008 • Performance continuing at the high 2007 level - Favourable prospects in the agricultural market - Municipal equipment at a stable high level - Buoyant situation in wine and fruit juice production equipment, also supported by the major orders in the UK and China - Slowdown in
Slide 59: Net sales and results
Net sales and results CHF m CHF m 3000 286 300 2459 2500 250 2087 1948 229 2000 1641 200 1535 185 1500 166 171 150 148 124 118 124 91 1000 100 59 96 86 500 50 54 36 0 0 2003 2004 2005 2006 2007 Net sales EBITDA EBIT Profit for the year Group presentation July 2008 page 59
Slide 60: Net operating assets (NOA) and RONOA
Net operating assets (NOA) and after-tax return on net operating assets (RONOA) CHF m % 800 40 700 35 687 600 30 568 605 23.8 500 567 25 503 400 20 14.8 14.3 300 12.1 15 200 6.9 10 100 5 0 0 2003 2004 2005 2006 2007 Net operating assets Return on net operating assets Group presentation July 2008 pag
Slide 61: Equity and return on equity (ROE)
Equity and return on equity (ROE) CHF m % 1000 25 21.4 800 873 20 14.8 725 600 15 639 525 14.0 488 400 10 10.7 7.9 200 5 0 0 2003 2004 2005 2006 2007 Equity Return on equity Group presentation July 2008 page 61
Slide 62: Operating free cash flow
Operating free cash flow CHF m 120 120 100 101 80 60 54 62 40 43 20 0 -20 -40 2003 2004 2005 2006 2007 Group presentation July 2008 page 62
Slide 63: Equity and total assets
Equity and total assets CHF m 2200 2130 2000 1840 1800 1675 1600 1494 1400 1401 1200 1000 800 600 400 488 34.8% 525 35.2% 639 38.1% 725 39.4% 873 41.0%200 0 2003 2004 2005 2006 2007 Shareholders' equity Total assets Group presentation July 2008 page 63
Slide 64: Equity / intangible assets
Equity / intangible assets CHF m 1000 873 725 800 639 488 525 600 400 200 68 38 49 25 79 47 62 45 79 61 0 2003 2004 2005 2006 2007 Equity Intangible assets Of which goodwill Group presentation July 2008 page 64
Slide 65: Net liquidity and free cash flow
Net liquidity and free cash flow Net liquidity Free cash flow CHF m CHF m 200 200 150 173 150 164 121 104 100 100 92 50 35 69 50 2 1 0 0 -29 -50 -50 2003 2004 2005 2006 2007 Net liquidity Free cash flow Group presentation July 2008 page 65
Slide 66: Market capitalisation and book equity
Market capitalisation and book equity CHF m % 2800 +686 e e pric s har 2400 in ea se I ncr 2000 1600 1200 800 400 0 Dec. 2003 Dec. 2004 Dec. 2005 Dec. 2006 Dec. 2007 30.06.2008 Equity Market capitalisation Group presentation July 2008 page 66
Bucher Industries — Investor Presentation (July 2008) on 6ix