Bucher Industries Ag · SIX:BUCN
Bucher Industries — Investor Presentation (August 2012)
70 slides from Bucher Industries's investor presentation, August 2012
Slide 1: Group presentation
Group presentation Group presentation August April 2011 2010 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 manu- glass container machinery and equip- specialised agricu
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 August 2012 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 Goals 2011 2010 2009 2008 2007 Kuhn Group 11 11.3 9.2 7.5 12.4 11.6 Bucher Municipal 8 7.0 7.3 3.9 7.6 6.9 Bucher Hydraulics 11 8.7 9.9 4.3 11.3 15.1 Emhart Glass 9 4.5 1.2 4.0 8.4 7.9 Bucher Specials 9 6.1 4.6 5.4 10.7 9.2 Bucher Industries 9 8.1 7.4 5.2 9.9
Slide 8: Group at a glance 2011
Group at a glance 2011 • Positive business environment in most of the main markets - Very favourable conditions in agricultural machinery and glass container industry - Hydraulic components very strong in first half, then flattening out - Municipal vehicles surprisingly stable, added boost from majo
Slide 9: Group at a glance 2011 (continued)
Group at a glance 2011 (continued) • Continued investment in the future - Important strategic strengthening of Kuhn Group and Emhart Glass - Modernisation, automation and expansion of production sites - Continuity in research and development • Solid financial situation, despite CHF 178 million inves
Slide 10: Net sales by division and region in 2011
Net sales by division and region in 2011 CHF 2 336 million Kuhn Group 44% Europe 59% Bucher Hydraulics 17% Switzerland 5% Bucher Municipal 16% Americas 20% Emhart Glass 15% Asia 9% Bucher Specials 8% Other 7% Group presentation August 2012 Page 10
Slide 11: Number of employees by region in 2011
Number of employees by region in 2011 France 27% North America 14% China 12% Switzerland 10% Germany 7% UK 5% Sweden 4% Brazil 4% Netherlands 4% Italy 4% Australia 3% Other 6% Group presentation August 2012 Page 11
Slide 12: Key figures
Key figures CHF million % change 2011 2010 % %1) %2) Order intake 2 588 2 217 16.7 29.3 24.7 Net sales 2 336 2 034 14.9 27.2 22.0 Order book 923 663 39.2 55.0 41.6 Operating profit (EBITDA) 260 224 16.1 as % of net sales 11.1% 11.0% Operating profit (EBIT) 190 151 25.6 as % of net sales 8.1% 7.4% Pr
Slide 13: Investing in the future
Investing in the future CHF million 2011 2010 % change Development costs 74 73 1.6 Capital expenditure 118 66 79.8 Acquisitions 60 1 n.a. Group presentation August 2012 Page 13
Slide 14: Results by operating segment
Results by operating segment 2011 2010 CHF million EBIT EBIT margin EBIT EBIT margin Kuhn Group* 116 11.3% 78 9.2% Bucher Municipal 27 7.0% 27 7.3% Bucher Hydraulics* 35 8.7% 37 9.9% Emhart Glass 15 4.5% 3 1.2% Bucher Specials 12 6.1% 9 4.6% Other/consolidation -15 -3 Bucher Industries* 190 8.1% 151
Slide 15: Net sales and number of employees
Net sales and number of employees CHF m Empl. 3000 2789 9380 10000 2459 2500 7618 7639 8000 8176 7261 2336 2000 2142 2034 6000 1500 4000 1000 500 2000 0 0 2007 2008 2009 2010 2011 Net sales Number of employees Group presentation August 2012 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 2366 500 2142 2034 2000 342 400 286 276 1500 260 300 229 224 190 190 1000 151 200 171 184 112 500 127 100 98 62 0 0 2007 2008 2009 2010 2011 Net sales EBITDA EBIT Profit for the year Group presentation August 2012 Page 16
Slide 17: Net operating assets and RONOA after tax
Net operating assets and RONOA after tax CHF m % 52.0 1200 54 1000 1114 41.8 45 35.4 800 891 36 27.9 849 828 600 31.9 27 687 400 23.8 18 18.5 17.0 200 1.5 12.4 9 0 0 2007 2008 2009 2010 2011 Net operating assets (4q-average) in % of net sales RONOA Group presentation August 2012 Page 17
Slide 18: Shareholders' equity and return on equity
Shareholders’ equity and return on equity CHF m % 1000 30 800 873 24 846 793 814 748 600 21.4 18 16.9 400 16.3 12 12.7 200 6 0 0 -200 -3.0 -6 2007 2008 2009 2010 2011 Shareholders' equity Return on equity Impairment charges: 2008 CHF 39 million, 2009 CHF 86 million Group presentation August 2012 Pag
Slide 19: Operating free cash flow
Operating free cash flow CHF m 200 202 183 150 100 55 50 43 -15 0 -50 2007 2008 2009 2010 2011 Group presentation August 2012 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 320 280 240 181 210 160 102 140 164 80 1 19 70 0 0 -111 -185 -72 -80 1 -118 -70 -160 -140 -240 -179 -210 -320 -223 -280 -400 -350 2007 2008 2009 2010 1st half- year 2nd half- year 2011 2011 Net liquidity Free cash flow Group p
Slide 21: Total assets and equity
Total assets and equity CHF m 2248 2500 2130 2068 2125 1985 2000 1500 873 846 793 814 1000 748 41% 41% 37% 38% 36% 500 0 2007 2008 2009 2010 2011 Total assets Equity Group presentation August 2012 Page 21
Slide 22: Shareholders' equity / Intangible assets
Shareholders’ equity / Intangible assets CHF m 1000 873 846 793 814 748 800 600 400 165 135 174 131 200 79 61 89 60 53 75 0 2007 2008 2009 2010 2011 Shareholders' equity Intangible assets thereof goodwill Group presentation August 2012 Page 22
Slide 23: Group outlook for 2012
Group outlook for 2012 • Continued downturn in the world economy with no prospect of a rapid recovery • Trends in our markets - Agricultural machinery: positive business development - Municipal vehicles: big Moscow order brings growth; demand otherwise stable at a low level - Hydraulic components: w
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 August 2012 Page 24
Slide 25: Kuhn Group Net sales and EBIT
Kuhn Group Net sales and EBIT CHF m CHF m 1200 1106 150 1026 1000 929 948 125 137 851 800 116 100 108 600 75 78 71 400 50 200 25 0 0 2007 2008 2009 1) 2010 2011 Net sales EBIT 1) Before impairment Group presentation August 2012 Page 25
Slide 26: Kuhn Group Net sales and number of employees 2011
Kuhn Group Net sales and number of employees 2011 Net sales Number of employees CHF 1 026 m 4 230 people Europe 68% France 56% Americas 27% North America 20% Asia 3% Brazil 11% Other 2% Netherlands 10% Other 3% Group presentation August 2012 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 August 2012 Page 2
Slide 30: Kuhn Group World farm equipment market by region
Kuhn Group World farm equipment market by region Europe 37% North America 27% China 16% Central and South America 6% India 8% Japan 2% Other 4% Group presentation August 2012 Page 30
Slide 31: Kuhn Group 2011 highlights
Kuhn Group 2011 highlights • Favourable market trend - Strong demand in all main markets - Farm incomes sound and rising, stimulating investment - Southern states of the USA and Brazil are an exception, affected by unfavourable climatic conditions, with severe drought - By contrast, outstanding cond
Slide 32: Kuhn Group 2011 highlights
Kuhn Group 2011 highlights • Expansion of strategic market position - Acquisition of Kuhn Krause, Inc., Kansas/USA, gaining Bild Krause entry to the North American grain farming market - Minority stake of 24% in Rauch machinery in Germany strengthens partnership in the seed drill and fertiliser spre
Slide 33: Kuhn Group Outlook for 2012
Kuhn Group Outlook for 2012 • 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 - Normal inventories at dealers - F
Slide 34: 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 August 2012 Page 34
Slide 35: Bucher Municipal Net sales and EBIT
Bucher Municipal Net sales and EBIT CHFm CHFm 600 60 491 512 500 50 387 373 380 400 40 39 300 34 30 27 26 200 25 20 100 10 0 0 2007 2008 1) 2009 2) 2010 2011 Net sales EBIT 1) Before impairment 2) Before restructuring Group presentation August 2012 Page 35
Slide 36: Bucher Municipal Net sales and number of employees 2011
Bucher Municipal Net sales and number of employees 2011 Net sales Number of employees CHF 380 m 1 530 people Europe 62% United Kingdom 29% Switzerland 6% Australia 20% Australia 25% Switzerland 19% Asia 5% Latvia 10% Other 2% Italy 7% Germany 6% Denmark 5% Other 4% Group presentation August 2012 Pag
Slide 37: 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 38: 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 39: Bucher Municipal 2011 highlights
Bucher Municipal 2011 highlights • Surprisingly stable demand despite high level of debt at national and municipal level • No significant change in investment policy • Timely expansion of production and assembly plant In Latvia • Swiss plant hard hit by strong Swiss franc; currency effect mitigated
Slide 40: Bucher Municipal Outlook for 2012
Bucher Municipal Outlook for 2012 • Market volumes declined by 30% since record year of 2008 • Stable demand at a low level • Persistence of competitive pressure expected • Full capacity utilisation until mid-year thanks to major contract from Moscow, also contributing to improvement in sales and pr
Slide 41: Bucher Hydraulics: Custom drive solutions
Bucher Hydraulics Custom drive solutions Municipal vehicles Agricultural Mining/ Wind energy Industrial Municipal Liftgates machinery tunnelling vehicles Construction Materials Marine/ Elevator High-voltage Dyna-lift equipment handling offshore technology switch gear Group presentation August 2012 P
Slide 42: Bucher Hydraulics Net sales and EBIT
Bucher Hydraulics Net sales and EBIT CHF m CHF m 497 500 100 387 399 400 371 80 320 59 56 300 60 200 37 35 40 100 14 20 0 0 2007 2008 1) 2009 1) 2010 2011 1) Before impairment charges Net sales EBIT Group presentation August 2012 Page 42
Slide 43: Bucher Hydraulics Net sales and number of employees 2011
Bucher Hydraulics Net sales and number of employees 2011 Net sales Number of employees CHF 399 m 1 712 people Europe 63% Germany 33% Switzerland 5% Switzerland 28% Americas 22% Americas 19% Asia 10% Italy 11% Asia 8% Other 1% Group presentation August 2012 Page 43
Slide 44: 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 45: 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 46: Bucher Hydraulics Segment growth rates
Bucher Hydraulics Segment growth rates Revenue 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 August 2012 Page 46
Slide 47: Bucher Hydraulics 2011 highlights
Bucher Hydraulics 2011 highlights • High market dynamics overall - Strong first half thanks to a certain demand backlog - Flattening of growth in the second half - Brisk demand in construction and agricultural machinery - Subdued demand in materials handling and industrial hydraulics • Significant c
Slide 48: Bucher Hydraulics Outlook for 2012
Bucher Hydraulics Outlook for 2012 • Decrease in order intake • Slowdown in construction activity in China also affecting construction machine segment • Impetus from projects with globally active customers expected • Completion of expansion project at Klettgau manufacturing facility, Germany • Stabi
Slide 49: 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 August 2012 Page 49
Slide 50: Emhart Glass Net sales and EBIT
Emhart Glass Net sales and EBIT CHF m CHF m 500 50 420 418 400 345 40 304 300 33 35 259 30 200 15 20 12 8 100 10 0 0 2007 2008 2009 2010 * 2011 ** Before restructuring Net sales EBIT Group presentation August 2012 Page 50
Slide 51: Emhart Glass Net sales and number of employees 2011
Emhart Glass Net sales and number of employees 2011 Net sales Number of employees CHF 345 m 2 134 people Europe 35% China 55% Asia 33% Sweden 20% Americas 21% Americas 12% Africa 11% Malaysia 5% Switzerland 3% Other 5% Group presentation August 2012 Page 51
Slide 52: 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 53: 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 54: Emhart Glass Per capita glass consumption
Emhart Glass Per capita glass consumption The high correlation between GNI and glass consumption fosters growth in emerging markets Group presentation August 2012 Page 54
Slide 55: Emhart Glass 2011 highlights
Emhart Glass 2011 highlights • Marked upturn after ten-year low in 2010 - High capacity utilisation in glass container industry - Brisk demand in Europe, Asia, Middle East and South America - Normalisation of demand towards end of year • High capacity utilisation in new and spare-parts business - Ex
Slide 56: Emhart Glass Outlook for 2012
Emhart Glass Outlook for 2012 • Market dynamic in the glass container industry, but at a lower level than the previous year • Distinct upturn in second half due to lively project activities • Growth, consolidation and integration of Sanjin as sales and earnings pillar • Good global set-up of divisio
Slide 57: 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 Augu
Slide 58: Bucher Specials Net sales and EBIT
Bucher Specials Net sales and EBIT CHF m CHF m 300 35 262 250 240 30 28 188 201 25 200 187 22 20 150 12 15 100 10 9 10 50 5 0 0 2007 2008 2009 2010 2011 Net sales EBIT Group presentation August 2012 Page 58
Slide 59: Bucher Specials Net sales and number of employees 2011
Bucher Specials Net sales and number of employees 2011 Net sales Number of employees CHF 201 m 511 people Europe 41% France 60% Switzerland 36% Switzerland 28% Americas 18% Chile 6% Asia 2% Italy 2% Other 3% Other 4% Group presentation August 2012 Page 59
Slide 60: 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 61: 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 August 2012 Page 61
Slide 62: Vaslin Wine production
Bucher Vaslin Wine production Million hl CAGR Million hl CAGR 50 35% 50 35% 24.9% 45 30% 45 30% 40 25% 40 25% 35 20% 35 20% 12.0% 30 -0.7% 15% 30 15% 25 0.2% 10% 25 4.6% 10% -3.6% 20 -1.0% -1.5% 0.4% 2.3% 3.7% 5% 20 0.1% 0.9% 5% -0.3% 15 -4.7% 0% 15 0% 10 -9.1% -5% 10 -5% 5 -4.1% -10% 5 -10% 0 -15%
Slide 63: 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 64: 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 65: Bucher Unipektin Apple production
Bucher Unipektin Apple production Million tonnes 80 70 60 50 Others South America 40 Northern America 30 Southern Europe Western Europe 20 Eastern Europe 10 Southern Asia 0 Eastern Asia 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Group presentation August 2012 Page 65
Slide 66: 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 67: 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 68: Bucher Specials 2011 highlights
Bucher Specials 2011 highlights • Differing market trends - Decline in winemaking equipment owing to suspension of subsidies in France - Marked upturn in processing equipment for fruit juice and instant products - Progress in sludge dewatering systems thanks to distribution agreement with Degrémont
Slide 69: Bucher Specials Outlook for 2012
Bucher Specials Outlook for 2012 • Market outlook for the independent businesses - Stabilisation of business with winemaking equipment, particularly in the key market of France - Good prices for apple juice concentrate underpins sales of equipment for fruit juice processing - Order intake for sludge
Slide 70: Group outlook for 2012
Group outlook for 2012 • Continued downturn in the world economy with no prospect of a rapid recovery • Trends in our markets - Agricultural machinery: positive business development - Municipal vehicles: big Moscow order brings growth; demand otherwise stable at a low level - Hydraulic components: w
Bucher Industries — Investor Presentation (August 2012) on 6ix