Bucher Industries Ag · SIX:BUCN
Bucher Industries — FY2010 Earnings Presentation
52 slides from Bucher Industries's earnings presentation, Mar 16, 2011
Slide 1: Annual press conference and annual analyst conference
Annual press conference and annual analyst conference 16 March 2011 Annual press conference and annual analyst conference 1616 March March 2011 2011 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 2011 Page 2
Slide 3: 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 4: 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 5: 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 6: 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% Annual press conference and annual analyst conference 16 March 2011 Page 6
Slide 7: Employee numbers
Employee numbers 2010 2009 % change At 31 December 7 899 7 183 10.0 Average during year 7 639 7 618 0.3 Annual press conference and annual analyst conference 16 March 2011 Page 7
Slide 8: Investing in the future
Investing in the future CHF million 2010 2009 % change Development costs 73 76 -3.6 Capital expenditure 66 59 12.5 Annual press conference and annual analyst conference 16 March 2011 Page 8
Slide 9: 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 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 2011 Page 10
Slide 11: 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 12: Kuhn Group Key figures
Kuhn Group Key figures CHF million 2010 2009 % change Order intake 976 735 32.7 Net sales 851 948 -10.2 Order book 357 246 45.0 Operating profit (EBITDA) 113 109 3.4 as % of net sales 13.3% 11.5% Operating profit (EBIT) before impairment 78 71 10.0 as % of net sales 9.2% 7.5% Operating profit (EBIT)
Slide 13: 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 14: Bucher Municipal Sweepers and winter maintenance equipment
Bucher Municipal Sweepers and winter maintenance equipment Compact sweepers Truck mounted sweepers Spreaders Refuse collection vehicles Annual press conference and annual analyst conference 16 March 2011 Page 14
Slide 15: 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 16: Bucher Municipal Key figures
Bucher Municipal Key figures CHF million 2010 20091) % change Order intake 381 371 2.6 Net sales 373 387 -3.5 Order book 89 81 9.0 Operating profit (EBITDA) 35 23 53.7 as % of net sales 9.4% 5.9% Operating profit (EBIT) 27 15 82.0 as % of net sales 7.3% 3.9% Number of employees at 31 December 1 334
Slide 17: 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 18: 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 19: 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 20: Bucher Hydraulics Key figures
Bucher Hydraulics Key figures CHF million 2010 2009 % change Order intake 387 277 39.8 Net sales 371 320 16.1 Order book 63 46 37.9 Operating profit (EBITDA) 56 34 64.3 as % of net sales 15.0% 10.6% Operating profit (EBIT) before impairment 37 14 169.3 as % of net sales 9.9% 4.3% Operating profit (E
Slide 21: 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 22: 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 23: 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 24: Emhart Glass Key figures
Emhart Glass Key figures CHF million 2010 2009 % change Order intake 285 232 22.7 Net sales 259 304 -14.6 Order book 110 92 19.9 Operating profit (EBITDA) before restructuring 16 21 -24.4 as % of net sales 6.2% 7.0% Operating profit (EBIT) before restructuring 8 12 -34.4 as % of net sales 3.1% 4.0%
Slide 25: 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 26: 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 Annual press conference
Slide 27: 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 28: Bucher Specials Key figures
Bucher Specials Key figures CHF million 2010 2009 % change Order intake 188 182 3.3 Net sales 187 188 -0.4 Order book 45 43 4.9 Operating profit (EBITDA) 11 12 -11.3 as % of net sales 5.9% 6.6% Operating profit (EBIT) 9 10 -14.0 as % of net sales 4.6% 5.3% Number of employees at 31 December 535 506
Slide 29: 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 30: 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 31: Financial report 2010
Financial report 2010 Annual press conference and annual analyst conference 1616 March March 2011 2011 Page 31
Slide 32: Order intake, order book and net sales
Order intake, order book and net sales CHF m CHF m 2792 2704 2800 1400 2789 2500 1200 2163 2142 2217 2459 2200 1000 1900 2087 871 2034 800 843 1600 1797 600 663 605 1300 507 400 1000 200 700 0 2006 2007 2008 2009 2010 Order book Order intake Net sales Annual press conference and annual analyst confe
Slide 33: 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 800 800 683 616 524 566 522 600 648544 466 508 663 600 471 563 507 521 416 470 400 475 442 400 403 567 493 462 522 506 200 200 0 0 1. Quarter 2. Quarter 3. Quarter 4. Quarter 1. Quarter 2. Quarter 3. Q
Slide 34: Impact on net sales, EBITDA and EBIT
Impact on net sales, EBITDA and EBIT CHF m -5% +18% 2142 2034 224 +36% 190 151 112 Net sales EBITDA EBIT 1) 2010 2009 1) 2009 before impairments Annual press conference and annual analyst conference 16 March 2011 Page 34
Slide 35: Consolidated income statement (1)
Consolidated income statement (1) CHF million 2010 2009 Change in %-points Net sales 2 034 99.5% 2 142 106.0% Changes in inventories of finished 10 0.5% -121 -6.0% goods and work in progress Total operating revenue 2 044 100.0% 2 021 100.0% Material expenses -1 040 -50.8% -1 038 -51.4% +0.6 Personne
Slide 36: Consolidated income statement (2)
Consolidated income statement (2) CHF million 2010 2009 Change in % Operating profit (EBITDA) 224 190 18.0 Depreciation -57 -61 -7.0 Amortisation -16 -17 -7.1 Operating profit (EBIT) before impairment 151 112 35.5 Impairment - -86 -100.0 Operating profit (EBIT) 151 26 486.8 Net financial items -11 -
Slide 37: Net financial items
Net financial items CHF million 2010 2009 +/- Net interest expense -18 -16 -2 Net gain on short-term investments 11 7 +4 Foreign exchange gains and losses -1 -7 +6 Other financial items -3 -3 - Net financial items -11 -19 +8 Annual press conference and annual analyst conference 16 March 2011 Page 37
Slide 38: Currency fluctuations USD, EUR, SEK
Currency fluctuations USD, EUR, SEK Annual press conference and annual analyst conference 16 March 2011 Page 38
Slide 39: Income tax
Income tax CHF million 2010 2009 +/- Result before tax 141 7 +134 Income tax -43 -31 -12 Tax rate before impairment 30.5% 33.8% Annual press conference and annual analyst conference 16 March 2011 Page 39
Slide 40: Net operating assets (NOA) and NOA in % of net sales
Net operating assets (NOA) and NOA in % of net sales CHF m % 1200 48 41.9 1000 34.8 40 33.1 1155 800 28.1 32 25.8 895 849 600 687 24 605 400 16 200 8 0 0 2006 2007 2008 2009 2010 Net operating assets (4q-average) In % of net sales Annual press conference and annual analyst conference 16 March 2011 P
Slide 41: Net operating assets and RONOA
Net operating assets and RONOA CHF m % 1200 30 23.8 1155 1000 25 800 895 20 849 14.3 600 687 18.5 12.4 15 605 400 10 200 1.5 5 0 0 2006 2007 2008 2009 2010 net operating assets (4q-average) RONOA Annual press conference and annual analyst conference 16 March 2011 Page 41
Slide 42: Cash flow statement
Cash flow statement CHF million 2010 2009 +/- Profit for the year 98 -24 +122 Depreciation and amortisation 73 78 -5 Change in provisions -6 -4 -2 Change in net working capital 82 105 -23 Other monetary positions 13 -2 +15 Impairment - 86 -86 Net cash from operating activities 260 239 +21 Annual pre
Slide 43: Free cash flow
Free cash flow CHF million 2010 2009 +/- Net cash flow from operating activities 260 239 +21 Purchases of property, plant and equipment (net) -54 -55 +1 Purchases of intangible assets (net) -4 -1 -3 Operating free cash flow 202 183 +19 Changes in financial assets and short-term investments -4 36 -40
Slide 44: Net liquidity and free cash flow
Net liquidity and free cash flow Net liquidity Free cash flow CHF m CHF m 320 254 280 197 240 210 160 173 140 164 80 -16 70 104 19 0 0 -80 1 -111 -118 -70 -156 -160 -140 -253 -240 -210 -320 -223 -368 -280 -400 -350 2006 2007 2008 1st half- 2nd half- 1st half- 2nd half- year 2009 year 2009 year 2010
Slide 45: Shareholders' equity / Intangible assets
Shareholders’ 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 Shareholders' equity Intangible assets Thereof goodwill Annual press conference and annual analyst conference 16 March 2011 Page 45
Slide 46: Shareholders' equity and return on equity
Shareholders’ equity and return on equity CHF m % 1000 30 800 873 846 24 793 748 725 600 21.4 18 16.9 400 14.0 12 12.7 200 6 0 0 -200 -3.0 -6 2006 2007 2008 2009 2010 Shareholders' equity Return on equity Annual press conference and annual analyst conference 16 March 2011 Page 46
Slide 47: Selected financial key figures
Selected financial key figures 2010 2009 Equity margin 37.7% 37.3% Net tangible worth CHF million 694 732 (equity – goodwill) Fixed-assets-to-net-worth ratio 230% 212% Net liquidity CHF million 19 -118 Debt payback period -0.1 0.6 (net debt/EBITDA) Interest coverage ratio 13x 12x (EBITDA/net interes
Slide 48: Remuneration report 2011 annual general meeting
Remuneration report 2011 annual general meeting Annual press conference Bilanzmedien- und Analystenkonferenz and annual analyst 16. März conference 2010 16 March 2011 Page 48
Slide 49: 2010 remuneration report
2010 remuneration report • Board of directors: non-performance-related remuneration - No change in the remuneration package - Remuneration increased solely because the directors forwent payment of one third of their remuneration in the previous year - Total remuneration per director: approx. CHF 140
Slide 50: Board of directors' proposals
Board of directors’ proposals • Dividend policy - Consistent 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 • 2011 dividend proposed for the 2010 financial year - CHF 3.00 per sha
Slide 51: Dividend / payout ratio
Dividend / payout ratio CHF m % 60 60 50 53 50 48 40 32.7 34.4 40 30.9 33.2 27.7 30 32 30 26 20 20 21 10 10 0 0 2006 2007 2008 2009 1) 2010 2) 1) Before impairment 2) Proposed by the board of directors Dividend Payout ratio Annual press conference and annual analyst conference 16 March 2011 Page 51
Slide 52: Financial calendar for 2010/2011
Financial calendar for 2010/2011 Annual general meeting 14 April 2011 Dividend payment 21 April 2011 Release of first quarter 2011 group sales 28 April 2011 Interim report 2011 9 August 2011 Release of third quarter 2011 group sales 27 October 2011 Release of 2011 group sales 2 February 2012 Annual