Bucher Industries Ag · SIX:BUCN
Bucher Industries — Investor Presentation (July 2010)
68 slides from Bucher Industries's investor presentation, July 2010
Slide 1: Group presentation
Group presentation Group presentation July 2010 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: 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 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: Manufacturing sites worldwide
Manufacturing sites worldwide Group presentation July 2010 Page 5
Slide 6: Group's short- to medium-term strategy
Group’s short- to medium-term strategy • Strengthening the existing divisions and independent businesses, primarily through organic growth and secondarily through selective acquisitions • Concentrating on improving operational efficiency - Weathering the downturn as best as possible - Getting ready
Slide 7: Group and division earnings targets
Group and division earnings targets EBIT margin Goals 2009 2008 2007 2006 2005 Kuhn Group 11 *7.5 12.4 11.6 **9.3 8.4 Bucher Municipal 8 3.9 *7.6 6.9 5.5 4.0 Bucher Hydraulics 11 *4.3 *11.3 15.1 12.6 9.9 Emhart Glass 9 4.0 8.4 7.9 7.0 5.2 Bucher Specials 9 5.4 Bucher Industries 9 5.2 8.8 9.3 5.9 6.0
Slide 8: 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 9: 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 10: 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% Group presentation July 2010 Page 10
Slide 11: Number of employees by region in 2009
Number of employees by region in 2009 France 33% Switzerland 12% North America 12% Germany 9% United Kingdom 6% Sweden 5% Brazil 5% Italy 4% Netherlands 4% Australia 4% Asia 3% Other 3% Group presentation July 2010 Page 11
Slide 12: 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 13: 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 Group presentation July 2010 Page 13
Slide 14: Division results
Division results 2009 2008 CHF million EBIT EBIT margin EBIT EBIT margin Kuhn Group 71 7.5% 137 12.4% 7 0.8% 137 12.4% Bucher Municipal* 20 4.5% 43 7.4% 20 4.5% 38 6.6% Bucher Process 5 3.9% 24 12.3% Bucher Hydraulics* 13 4.3% 56 11.4% -9 -2.7% 31 6.3% Emhart Glass 12 4.0% 35 8.4% Other/consolidatio
Slide 15: Net sales and number of employees
Net sales and number of employees CHF m Empl. 3000 9000 7618 2500 7500 2000 6000 2142 1500 4500 1000 3000 500 1500 0 0 2005 2006 2007 2008 2009 Net sales Number of employees Group presentation July 2010 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 1948 2087 2142 2000 342 400 286 1500 300 229 246 185 190 1000 166 200 118 124 171 112 500 145 100 86 96 62 0 0 2005 2006 2007 2008 2009 Net sales EBITDA EBIT Profit for the year Group presentation July 2010 Page 16
Slide 17: 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 (Q4 average) RONOA Group presentation July 2010 Page 17
Slide 18: Equity and return on equity (ROE) before impairment
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 Equity Return on equity Group presentation July 2010 Page 18
Slide 19: Operating free cash flow
Operating free cash flow CHF m 200 183 180 160 140 120 100 101 80 60 62 40 43 20 -15 0 -20 2005 2006 2007 2008 2009 Group presentation July 2010 Page 19
Slide 20: 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 21: Total assets and equity
Total assets and equity CHF m 2500 2130 2068 2125 1840 2000 1675 1500 873 846 793 1000 639 725 500 38.1% 39.4% 41.0% 40.9% 37.3% 0 2005 2006 2007 2008 2009 Total assets Equity Group presentation July 2010 Page 21
Slide 22: Equity/intangible assets
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 Equity Intangible assets Thereof goodwill Group presentation July 2010 Page 22
Slide 23: 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 24: 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 July 2010 Page 24
Slide 25: 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 2005 2006 1) 2007 2008 20092) 1) Before restructuring 2) Before impairment Net sales EBIT Group presentation July 2010 Page 25
Slide 26: Kuhn Group: Net sales and number of employees 2009
Kuhn Group Net sales and number of employees 2009 Net sales Number of employees CHF 948 m 3 152 people Europe 76% France 63% Americas 19% Brazil 12% Asia 3% Nord America 12% Other 2% Netherlands 8% Other 5% Group presentation July 2010 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 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 30: 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 31: 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 32: 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 July 2010 Page 32
Slide 33: 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 2005 2006 2007 20081) 20092) 1) Before impairment 2) Before restructuring Net sales EBIT Group presentation July 2010 Page 33
Slide 34: Bucher Municipal: Net sales and number of employees 2009
Bucher Municipal Net sales and number of employees 2009 Net sales Number of employees CHF 387 m 1 318 people Europe 68% United Kingdom 29% Switzerland 7% Switzerland 20% Australia 18% Australia 19% Asia 4% Germany 12% Italy 7% Other 3% Denmark 5% Latvia 3% Other 5% Group presentation July 2010 Page
Slide 35: 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 36: 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 July 2010 Page 36
Slide 37: 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 38: 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 39: Bucher Hydraulics: Custom drive solutions
Bucher Hydraulics Custom drive solutions Municipal vehicles Agricultural Mining/ Wind energy Industrial Municipal Liftgates machinery tunnelling vehicles Construction Material Marine/ Elevator High voltage Dyna-lift equipment handling offshore technology switch gear Group presentation July 2010 Page
Slide 40: 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 2005 2006 2007 2008 * 2009 * Net sales EBIT * Before impairment charges Group presentation July 2010 Page 40
Slide 41: Bucher Hydraulics: Net sales and number of employees 2009
Bucher Hydraulics Net sales and number of employees 2009 Net sales Number of employees CHF 320 m 1 317 people Europe 63% Switzerland 31% Switzerland 5% Germany 30% Americas 20% Americas 17% Asia 11% Italy 12% Other 1% Asia 8% Other 2% Group presentation July 2010 Page 41
Slide 42: Bucher Hydraulics: Market position
Bucher Hydraulics Market position • Leading specialist in mobile, industrial and elevator hydraulics across Europe; built up presence in USA • Market share: 10% to 20% in specialised areas of hydraulic engineering • Focused on customised drive solutions • Main competitors: Bosch-Rexroth (DE), Sauer
Slide 43: Bucher Hydraulics: Leading market position in Europe
Bucher Hydraulics Leading market position in Europe 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- (Ceto
Slide 44: 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 Hydraulics Engineering Bucher Hydraulics Source: VDMA Group presentation July 2010 Page 44
Slide 45: 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 46: 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 47: 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 Group presentation July 2010 Page 47
Slide 48: 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 2005 2006 2007 2008 2009 Net sales EBIT Group presentation July 2010 Page 48
Slide 49: Emhart Glass: Net sales and number of employees 2009
Emhart Glass Net sales and number of employees 2009 Net sales Number of employees CHF 304 m 871 people Europe 48% Sweden 44% Asia 24% Americas 30% Americas 18% Switzerland 8% Africa 9% Asia 8% Other 1% Italy 4% Other 6% Group presentation July 2010 Page 49
Slide 50: 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 51: 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 Bottero (IT) BDF (IT) O-I (USA) Sklostroj (CZ) GPS (DE) Heye
Slide 52: 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 53: 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 54: 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 55: 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 July
Slide 56: 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 2005 2006 2007 2008 2009 Net sales EBIT Group presentation July 2010 Page 56
Slide 57: Bucher Specials: Net sales and number of employees 2009
Bucher Specials Net sales and number of employees 2009 Net sales Number of employees CHF 188 m 506 people Europe 44% France 63% Switzerland 40% Switzerland 23% Americas 8% Chile 6% Asia 4% Italy 2% Other 4% Other 6% Group presentation July 2010 Page 57
Slide 58: 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 59: 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 July 2010 Page 59
Slide 60: Vaslin: World wine production
Bucher Vaslin World wine production Million hl Italy 18% 400 350 Americas 19% 295 300 284 261 265 269 268 268 300 France 18% 250 Spain 14% 200 Rest of Europe 12% 150 Asia 6% 100 50 Oceania 5% 0 Africa 4% prov. 2007 1976-1980 1981-1985 1986-1990 1991-1995 1996-2000 2002 2003 2004 2005 2006 Forecast 2
Slide 61: Bucher Foodtech/Drytech: Market position
Bucher Foodtech/Drytech 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), Unipektin
Slide 62: Bucher Foodtech/Drytech: World market leader
Bucher Foodtech/Drytech World market leader Juice production Competitors Reception Milling Mash Dejuicing Pasteuri- Filtration Adsorp- Evapo- heating zation tion ration Bucher Foodtech/ Drytech Unipektin (CH) Flottweg (DE) Bauer & Partners (PL) GEA Group (DE) Alfa Laval (SE) Schmidt-Bretten (DE) Bel
Slide 63: Bucher Foodtech: World apple production 1960–2008
Bucher Foodtech World apple production 1960 – 2008 Million tonnes 70 60 50 40 other 30 South America 20 North America Asia 10 Europe 0 1960 1970 1980 1990 2000 2006 Apple juice (2008) Apple juice production: approx. 80% concentrate, 15% pure juice, 5% cider Group presentation July 2010 Page 63
Slide 64: 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 (CNH), attachments (Kuhn), wheel loaders (Weidmann) and
Slide 65: Bucher Landtechnik: Market leader in Switzerland
Bucher Landtechnik Market leader in Switzerland Competitos 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 CNH / Weide- Kuhn Kuhn Ku
Slide 66: Bucher Specials: 2009 highlights
Bucher Specials 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 - Landtechnik Schweiz not badly affected • Closure of manufacturing faciliti
Slide 67: 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 • Fruit juice equipment expects a difficult year without large-scale projects and low prices for concentrated apple juice • Systems fo
Slide 68: 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
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