Wacker Neuson Se · XETR:WAC

Wacker Neuson — Q2 2017 Earnings Presentation

22 slides from Wacker Neuson's earnings presentation, Aug 8, 2017

  1. Slide 1: Analyst and Investor Conference Call – Results H1 and Q2/17

    Wacker Neuson SE Analyst and Investor Conference Call – Results H1 and Q2/17 Cem Peksaglam (CEO), Wilfried Trepels (CFO) August 8, 2017

  2. Slide 2: Agenda

    Agenda Review H1/17 Outlook Financial Information 2

  3. Slide 3: Key figures

    Key figures Q2/17 H1/17 Revenue EBIT Revenue EBIT +11% +41% +9% +20% (425.2 m€) (margin: 11.0%, +2.3 PP) (763.7m€) (margin: 8.0%, +0.7 PP) Op. CF EPS Op. CF EPS +34% +31% +61% +15% (56.1 m€) (0.42 €) (57.7 m€) (0.55 €) June 30, 2017 NWC1 ratio: 34% DIO2: 130 days Equity ratio: 65% (-4.5 PP yoy) (-19

  4. Slide 4: Revenue (half year comparison 2013-2017)

    Revenue (half year comparison 2013-2017) Revenue and EBIT margin H1/13-H1/17 (in m€) +30% (in %) +9% 763.7 706.4 697.8 620.0 586.1 8.22 10.4 7.3 8.2 8.0 6.9 6.61 Revenue EBIT margin in % EBIT margin in % adjusted for one-off effects1,2 Record revenue in H1/17, profitability increasing Note: Currency

  5. Slide 5: Revenue (Q2 comparison 2013-2017)

    Revenue (Q2 comparison 2013-2017) Revenue and EBIT margin Q2/13-Q2/17 (in m€) (in %) +29% +11% 328.4 425.2 382.1 381.4 329.0 12.6 11.0 9.7 8.9 8.7 Revenue EBIT margin in % Best quarter in history, double digit EBIT margin Note: Currency effects resulting from the evaluation of receivables and payabl

  6. Slide 6: Agenda

    Agenda Review H1/17 Outlook Financial Information 6

  7. Slide 7: Business performance – Revenue and EBIT by region H1/17

    Business performance – Revenue and EBIT1 by region H1/17 Revenue by region2,3 Europe (in m€)  Strong growth especially in Germany, Austria, France, Scandinavia, Italy, Eastern Europe (despite of Turkey) 763.7  Upbeat mood in the European agricultural sector 697.8 -10% (-12%) 23.2 3.0%  EBIT of 71

  8. Slide 8: Business performance – Revenue by business segment H1/17

    Business performance – Revenue by business segment H1/17 Revenue by business segment1, 2 Light equipment (in m€)  Back on growth track (revenue +10% yoy) after weak 2016  Strong business with compaction equipment and worksite technology  Upturn in investments in key markets for light equipment su

  9. Slide 9: Development of revenue and profitability Q2/17

    Development of revenue and profitability Q2/17 Income statement (extract) and number of employees (in m€) Q2/17 Q2/16 Change in %  Gross Profit Revenue 425.2 381.4 11.5  Volume effect: +12.4 m€  Capacity utilization improved at production sites Gross profit (as a % of revenue) 122.4 (28.8) 108.0

  10. Slide 10: Development of revenue and profitability H1/17

    Development of revenue and profitability H1/17 Income statement (extract) and number of employees  Gross Profit  Volume effect: +18.4 m€  Capacity utilization (in m€) H1/17 H1/16 Change in % improved at production sites in H1/17 Revenue 763.7 697.8 9.4  Margin effect: +0.9 m€  Europe’s smaller

  11. Slide 11: 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% 255 256 258 1.3 245 1.2 1.2 250 40% 203 200 28% 0.9 0.9 24% 25% 23% 30% 150 21% 20% 100 50 10% 0 0% H1/13 H1/14 H1/15 H1/16 H1/17 H1/13 H1/14 H1/15 H1/16 H1/17 Equity

  12. Slide 12: 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) 46 495 514 50 475 464 35 500 445 448 443 462 240 428 27 211 30 400 220 15 19 11 188 200 180 10 3 300 168 170 172 161 180 149 160 -10 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1

  13. Slide 13: Agenda

    Agenda Review H1/17 Outlook Financial Information 13

  14. Slide 14: 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

  15. Slide 15: Recovery in the European agricultural business continues

    Recovery in the European agricultural business continues Business climate index of the agricultural machinery industry in Europe CBI = geometric mean of 1) evaluation of the current business situation and 2) turnover expectation, scale from -100 to +100 Source: CEMA Business Barometer, July 2017 15

  16. Slide 16: Strategic alliances and partnerships – ongoing internationalization

    Strategic alliances and partnerships – ongoing internationalization P OEM (global) OEM (South America) OEM (global)1 R O D U C T S HAMM produces for Wacker Neuson Randon produces for Wacker Neuson Wacker Neuson produces for Caterpillar1 Distribution partnership (EMENA & CIS2) Distribution partnershi

  17. Slide 17: Strategic alliance with John Deere in EMENA and CIS

    Strategic alliance with John Deere in EMENA and CIS1 Kramer‘s full range of material handling equipment for the agriculture industry  Cooperation covers entire agricultural portfolio including wheel loaders, telescopic wheel loaders and tele handlers  John Deere defined Kramer as preferred supplie

  18. Slide 18: 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 Located in Pinghu, 30 km from Shanghai city border July 2017  Plot of 130,000qm, 33,000 qm for modern production, offices and logistic facilities  Sustainability in focus: geothermal energy and s

  19. Slide 19: Changed forecast for 2017

    Changed forecast for 2017 Financial forecast (FC) 2017e 2016 Prev. FC 2017e1 New FC 2017e1 Mid term Revenue in bn€ 1.36 1.40 – 1.45 1.45 – 1.50 >2.0 EBIT margin as a % Mid of 6.5 7.5 – 8.52 >9.0 (operational) 7.5 – 8.52 Net Working Capital 42 <40 <40 <40 as a % of revenue Depending on CapEx in m€ 10

  20. Slide 20: Share price

    Share price Performance of share price since January 1, 2017 % +54% 160 150 € 23.991 140 Market Cap: € 1.683 bn1 130 120 110 € 15.60 100 90 80 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Wacker Neuson SDAX DAX Peergroup in € Q3/11 H1/16 H1/17 ISIN / WK DE000WACK012 / WACK01 Shareholder s

  21. Slide 21: Financial calendar and IR contact

    Financial calendar and IR contact Financial Calendar August 8, 2017 Publication of half-year report 2017; Analyst Conference Call September 18, 2017 Baader Investment Conference 2017, Munich September 20, 2017 German Corporate Conference 2017 (Berenberg / Goldman Sachs), Munich November 9, 2017 Publ

  22. Slide 22: 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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