Wacker Neuson Se · XETR:WAC

Wacker Neuson — Q3 2017 Earnings Presentation

25 slides from Wacker Neuson's earnings presentation, Nov 9, 2017

  1. Slide 1: Analyst and Investor Conference Call – Results Q3/17

    Wacker Neuson SE Analyst and Investor Conference Call – Results Q3/17 Martin Lehner (CEO), Wilfried Trepels (CFO) November 9, 2017

  2. Slide 2: Agenda

    Agenda Review Q3/17 Outlook Financial Information 2

  3. Slide 3: Key figures

    Key figures Q3/17 9M/17 Revenue EBIT Adj. EBIT Revenue EBIT Adj. EBIT +20% +96% +111% +13% +42% +63% (378.7 m€) (margin: 10.6%) (margin: 11.4%) (1,142.4 m€) (margin: 8.8%) (margin: 9.5%) Op. CF FCF EPS Op. CF FCF EPS +26% +46% +171% +40% +357% +55% (73.9 m€) (50.4 m€) (0.46 €) (131.6 m€) (46.6 m€) (

  4. Slide 4: Revenue (Q3 comparison 2013-2017)

    Revenue (Q3 comparison 2013-2017) Revenue and EBIT margin Q3/13-Q3/17 (in m€) +37% (in %) Best 3rd quarter in history, double digit EBIT margin despite one-offs Note: Currency effects resulting from the evaluation of receivables and payables in foreign currencies and from the evaluation of cash and

  5. Slide 5: Revenue (9M comparison 2013-2017)

    Revenue (9M comparison 2013-2017) Revenue and EBIT margin 9M/13-9M/17 (in m€) +32% (in %) Record revenue in 9M/17, profitability increasing Note: Currency effects resulting from the evaluation of receivables and payables in foreign currencies and from the evaluation of cash and cash equivalents are

  6. Slide 6: Agenda

    Agenda Review Q3/17 Outlook Financial Information 6

  7. Slide 7: Business performance – Revenue and EBIT by region

    Business performance – Revenue and EBIT by region Revenue Q3/17 Revenue 9M/17 m€ m€ share yoy EBIT1 share yoy EBIT1 Europe 280 74% +17% 40 Europe 836 73% +10% 111 Americas 88 23% +32% -0 Americas 273 24% +26% 2 Asia-Pacific 10 3% +14% -3 Asia-Pacific 33 3% -4% -6 Total 379 100% +20% 40 Total 1,142 1

  8. Slide 8: Business performance – Revenue by business segment

    Business performance – Revenue by business segment Revenue1 Q3/17 Revenue1 9M/17 m€ m€ share yoy share yoy Light Equipment 103 27% +14% Light Equipment 326 28% +11% Compact Equipment 197 51% +27% Compact Equipment 601 52% +15% Services 87 22% +11% Services 234 20% +9% Total 379 100% +20% Total 1.142

  9. Slide 9: Ag business (Weidemann, Kramer, Claas)

    Ag business (Weidemann, Kramer, Claas) Revenue breakdown for 9M/17 Revenue 9M/17 vs. 9M/16 (in m€) +11% 152.4 137.2 9M/17 9M/16 Construction and other industries 67% 66% Agriculture 13% 13% Services 20% 21% Revenues ag business: Q1/17 vs. Q1/16: -2% Q2/17 vs. Q2/16: +9% Q3/17 vs. Q3/16: +31% 9M/16 9

  10. Slide 10: Development of revenue and profitability Q3/17

    Development of revenue and profitability Q3/17 Income statement (extract) and number of employees (in m€) Q3/17 Q3/16 Change in %  Gross Profit Revenue 378.7 315.7 20.0  Volume effect: +17.9 m€ Gross profit (as a % of revenue) 111.9 (29.5) 89.6 (28.4) 24.9 (1.1 PP)  Margin effect: +4.5 m€  Capac

  11. Slide 11: Development of revenue and profitability 9M/17

    Development of revenue and profitability 9M/17 Income statement (extract) and number of employees (in m€) 9M/17 9M/16 Change in %  Gross Profit Revenue 1,142.4 1,013.5 12.7  Volume effect: +36.2 m€ Gross profit (as a % of revenue) 326.3 (28.6) 284.6 (28.1) 14.7 (0.5 PP)  Margin effect: +5.5 m€ 

  12. Slide 12: Key figures from balance sheet – excellent credit standing

    Key figures from balance sheet – excellent credit standing Net financial debt and gearing1 Net financial debt/EBITDA2 (in m€) 300 50% 241 1.6 250 214 224 40% 1.5 199 195 1.3 200 23% 23% 30% 1.1 150 20% 21% 0.8 18% 20% 100 50 10% 0 0% 9M/13 9M/14 9M/15 9M/16 9M/17 9M/13 9M/14 9M/15 9M/16 9M/17 Equity

  13. Slide 13: Business performance: Increase of Free Cash Flow, reduction of inventory

    Business performance: Increase of Free Cash Flow, reduction of inventory Free Cash Flow Inventories (in m€) (in m€) (DIO2) 46 50 514 50 475 464 300 35 500 445 448 443 462 428 439 27 30 19 400 250 15 11 211 10 300 188 180 172 200 170 200 161 -10 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 1

  14. Slide 14: Share & Dividend

    Share & Dividend Share price development 2017 % +81% 200 180 28.31 €1 Market Cap > 1.9 bn€1 160 140 120 100 15.60 € 80 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Wacker Neuson SDAX DAX Peergroup 2 in € 9M/16 9M/17 ISIN / WK DE000WACK012 / WACK01 Shareholder structur

  15. Slide 15: Agenda

    Agenda Review Q3/17 Outlook Financial Information 15

  16. Slide 16: Business climate in construction industry on high level

    Business climate in construction industry on high level Barometer showing industry climate of the European manufacturers Source: CECE, September 2017. 16

  17. Slide 17: Global sales of construction machinery back on growth path

    Global sales of construction machinery back on growth path 2016–2020 machinery sales CAGR: 5,7% Wacker Neuson’s expectations -30% +25%  Europe and Americas main growth drivers  Europe: strong business in the construction +7% sector, upbeat mood in the agricultural sector  North America: stronger

  18. Slide 18: Recovery in the agricultural business continues

    Recovery in the agricultural business continues Barometer showing economic outlook for the agricultural sector in Germany Index: 0 baseline corresponds to mean value for years 2000 to 2006. Source: German Farmers’ Association, June 2017. 18

  19. Slide 19: Strategic alliances and partnerships leverage our sales

    Strategic alliances and partnerships leverage our sales Core Markets OEM (global) OEM (global) Distribution (EMENA & CIS2) Wacker Neuson produces for Caterpillar1 HAMM produces for Wacker Neuson Kramer3 distributes via JD‘s dealer network Latin America and Asia OEM (Latin America) Distribution (Kore

  20. Slide 20: Setting the base for further growth in China and Asia

    Setting the base for further growth in China and Asia New plant – Start of production planned for 2018 Mini excavator market China 2016 – 2020e (units) 40,000 CAGR 30,000 30,000 +11% 19,500 20,000 10,000 0,000 2016 2020e Located in Pinghu, 30 km from Shanghai city border. Excavator: EZ17 Source: Off

  21. Slide 21: Development of revenue and profit since Q1/15

    Development of revenue and profit since Q1/15 EBIT development Q1/15-Q4/17e – seasonal pattern Revenue (m€) EBIT margin (%) 450,00 425 20% 400,00 382 381 379 18% 358 348 358 350,00 324 339 16% 311 316 316 14% 300,00 11.0 10.6 12% 250,00 9.7 8.7 10% 200,00 7.4 6.4 6.8 08% 6.6 5.5 6.5 150,00 5.1 4.2 0

  22. Slide 22: Enhanced Forecast for 2017: more optimistic expectations

    Enhanced Forecast for 2017: more optimistic expectations Financial forecast (FC) 2017e 2016 FC 2017e1 (March) FC 2017e1 (Aug) FC 2017e1 (Nov) Mid term Upper end of Revenue in bn€ 1.36 1.40 – 1.45 1.45 – 1.50 >2.0 1.45 – 1.50 EBIT margin as a % Mid of Upper end of 6.5 7.5 – 8.52 >9.0 (operational) 7.

  23. Slide 23: Company's strategy in spring 2018

    New Management will communicate an update on the company’s strategy in spring 2018 Core aspects will be:  Concentrate on actions that create CUSTOMER BENEFIT  Organize and expand AFTERSALES  Define concrete goals regarding INTERNATIONALIZATION  Take advantage of DIGITIZATION in our processes as

  24. Slide 24: Financial calendar and IR contact

    Financial calendar and IR contact Financial Calendar November 9, 2017 Publication of nine-month report 2017; Analyst Conference Call November 15, 2017 Roadshow London November 16, 2017 Roadshow Duesseldorf & Cologne November 29, 2017 Equity Forum, Frankfurt December 19 & 20, 2017 Roadshow Copenhagen

  25. Slide 25: Disclaimer

    Disclaimer Cautionary note regarding forward-looking statements  The information contained in this document has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctn

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