Wacker Neuson Se · XETR:WAC
Wacker Neuson — 9M 2024 Earnings Presentation
20 slides from Wacker Neuson's earnings presentation, Nov 14, 2024
Slide 1: Wacker Neuson Group – 9M/2024 Earnings Call & Webcast
Wacker Neuson Group – 9M/2024 Earnings Call & Webcast Dr. Karl Tragl (CEO), Christoph Burkhard (CFO) November 14, 2024
Slide 2: Overview Q3/2024 // 9M/2024
Overview Q3/2024 // 9M/20241 Q3/2024 9M/2024 Revenue EBIT margin NWC ratio2 FCF Revenue EBIT margin NWC ratio2 FCF € 517.6 m 4.8% 39.0% € 87.0 m € 1,722.4 m 6.3% 39.0% € 91.5 m (-20.1% YoY) (py: 9.8%) (py: 35.5%) (py: € -10.4 m) (-14.5% YoY) (py: 11.9%) (py: 35.5%) (py: € -40.9 m) ✓ Revenue 9M
Slide 3: Lower market demand in all regions
Lower market demand in all regions [€ m] +21% 1,506.1 -12% 77% of 1,323.5 Group revenue1 1,242.2 2% 21% 9M/22 9M/23 9M/24 of Group revenue1 of Group revenue1 EUROPE [€ m] +34% -20% 447.1 -8% [€ m] -30% 356.5 333.1 65.7 60.7 42.4 9M/22 9M/23 9M/24 9M/22 9M/23 9M/24 APAC AMERICAS 1 9M/2023: Americas 2
Slide 4: Net working capital development
Net working capital development As of September 30, 2024 NWC ratio (annualized) 35.5% 33.9% 38.7% 37.0% 39.0% NWC ratio (LTM) 35.0% 32.8% 35.6% 36.3% 34.2% [€ m] 950 919 918 906 900 870 850 819 808 800 775 780 750 726 700 665 650 30.09.2023 31.12.2023 31.03.2024 30.06.2024 30.09.2024 Net working cap
Slide 5: Positive free cash flow momentum
Positive free cash flow momentum € 92 million € 390 million Free cash flow Net financial debt1 1.5 Net financial debt / EBITDA2 1 Net financial debt = Non-current financial liabilities + Current liabilities to banks + Current portion of non-current liabilities - Cash and cash equivalents. 2 Net fina
Slide 6: Our measures to be Fit for 2025
Our measures to be Fit for 2025 Actions for earnings improvement and addressing current market dynamics 9M/2024 Measures Q4/2024 Additional Measures Costs • Adjustment of production output • Short-time working extension • Lower personnel expenses • Further FTE reduction of production as well as SG&A
Slide 7: Strategy 2030
OUR VISION Our innovative solutions drive technological change. STRATEGY 2030 We make a strong contribution OUR PURPOSE to sustainable construction and agriculture. We make our customers OUR MISSION more productive than anyone else in the market. STRATEGIC PERSPECTIVES > 11 % € 4 billion ≤ 30 % EBIT
Slide 8: Milestones in the implementation of the Strategy 2030
Milestones in the implementation of the Strategy 2030 Strategic Levers 2030 Time to Market & Innovation M&A Securing strategic leadership through product Further core business optimization: innovations: • Compact Machinery B.V.: strengthening of • EnergyDecentral Innovation Award from the DLG1 for s
Slide 9: Action items per strategic lever ensure strategy execution
Action items per strategic lever ensure strategy execution Wacker Neuson Group Strategic Levers 2030 2023 2024 2025 2026 … 1) Light Equipment Introduction of Introduction of new Battery One Reach light equipment market share target, Market Leadership new rollers and plates rammers implementation esp
Slide 10: Business outlook
Business outlook Order intake Still high dealer CEMA1 remains low stocks Business climate index for the European agricultural machinery sector remains negative, further turnover decreases expected Adjusted guidance for 2024: ▪ Revenue between € 2,200 and € 2,300 million CECE1 (prev.: between € 2,300
Slide 11: Nobody is perfect, but a team can be!
Nobody is perfect, but a team can be! Wacker Neuson SE, Q3/2024 Earnings Call & Webcast, November 14, 2024 11
Slide 12: Financial calendar and contact
Financial calendar and contact November 25-27, 2024 German Equity Forum 2024, Frankfurt January 22, 2025 Kepler German Corporate Conference 2025, Frankfurt March 26, 2025 Publication of Annual Report with Annual/Consolidated Financial Statements 2024, Earnings Call March 27, 2025 Jefferies 5th Pan-E
Slide 13: Appendix
Appendix Wacker Neuson SE, Q3/2024 Earnings Call & Webcast, November 14, 2024 13
Slide 14: Revenue and profitability – Q3/2024
Revenue and profitability – Q3/2024 Declining growth and profitability, strained market Comments on Q3/2024 Revenue EBIT -20.1% Revenue -20.1% YoY (adj. for FX effects -19.9%) [€ m] margin ▪ Weak market environment continues to burden the results 800 20% 667 699 648 641 ▪ No sustainable order intake
Slide 15: Revenue and profitability – 9M/2024
Revenue and profitability – 9M/2024 Declining growth and profitability, strained market Comments on 9M/2024 Revenue EBIT -14.5% Revenue -14.5% YoY (adj. for FX effects -14.4%) [€ m] margin ▪ Weak market environment continues to burden the results 800 20% 667 699 648 641 ▪ Both construction and agric
Slide 16: Development of regions and business areas
Development of regions and business areas Lower market demand in all regions Comments on 9M/2024 Revenue [€ m] Revenue Europe (EMEA) -12.1% YoY (adj. for FX effects -12.2%) Share YoY EBIT1 Europa 1,323.5 77% -12% 77.1 ▪ Revenue decreases in Germany, France an United Kingdom could not be offset by re
Slide 17: Inventory reduction continues in Q3 2024
Inventory reduction continues in Q3 2024 Inventories Trade receivables Inventory DIO1 Trade receivables DSO2 [€ m] [Days] [€ m] [Days] 1,000 400 500 200 783 819 780 405 393 742 774 377 387 384 800 726 400 343 347 673 679 665 300 318 150 301 600 300 143 154 141 157 143 152 200 100 133 135 137 400 200
Slide 18: Successful free cash flow generation
Successful free cash flow generation Net Working Capital Operating cash flow Net working capital Net working capital Operating cash flow 9M/2024: [€ m] [as % of revenue]1 [€ m] € 173 m 1,000 884 919 918 906 100% 150 870 9M/2023: 802 808 110 761 719 € 43 m 800 80% 100 60 70 61 22 29 600 60% 50 36% 39
Slide 19: Still robust financial structure with slightly higher equity ratio
Still robust financial structure with slightly higher equity ratio Net financial debt1 and gearing2 Net financial debt/EBITDA3 Gearing2 Net financial debt1 Net financial debt/ [€ m] EBITDA3 466 1.6 1.5 500 100% 90% 1.4 1.3 1.3 402 390 1.2 400 376 366 80% 1.2 353 70% 1.0 0.9 0.8 300 254 258 60% 0.8 0
Slide 20: The Wacker Neuson SE share
The Wacker Neuson SE share Share price development vs. relevant indices1 Dividend payout 300% 4.00 41% -23% 48% 53% 0% 48% 42% 45% 3.50 135% 3.00 2.73 120% 2.50 2.10 3 2.06 1.99 105% 2.00 0.65 90% 1.50 1.25 1.26 1.15 1.10 1.00 1.00 0.50 0.90 75% 0.60 0.60 0.50 1.41 0.20 60% 0.60 0.00 0.00 2017 2018