balance sheet press conference, stuttgart 13 december 2011

8/3/2019 Balance Sheet Press Conference, Stuttgart 13 December 2011

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Growing Profitably Securing the

FutureBalance Sheet Press Conference, Stuttgart, 13 December 2011


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Agenda

1. Highlights 2011 (Dr. Hubert Lienhard)

2. Financial Results 2011 (Dr. Hermann Jung)

3. Outlook (Dr. Hubert Lienhard)


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2011: Another Good Year

Orders Received Sales

Equity quota

6,358 million 5,594 million

22.1%

Net income

200 million

Operational result

416 million

Net debt

-52 million

= Net Assets

consolidated*

*Consolidated by figures from non-recurring results.

+ 20 % + 8 % + 18 %

+ 64 %+ 18 %


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Looking Back: Our Challenges for 2011


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Mastering Rapid Expansion

Investment in value creation continues on a high level with211 million worldwide.

Targeted workforce expansion in the Group continues.

2,100 employees trained internally to become specialists andsenior executives.


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Access to regional growth markets:turbine production in Manaus


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New turbine production plantin St. Plten, Austria


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Workforce Expansion in the GroupFocusing on Growth Markets


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Keeping the Speed of Innovation on a High Level


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Voith Development and Production Center for CFK inGarching near Munich


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Innovations Pay Off: With ATMOS Technology

Back to the Top of the Tissue Market

Revolution in tissue making 40 percent less investment costs

60 percent less energyconsumption

100 percent recyclable

Developed by Voith inSo Paulo, Brazil


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Opening up new markets:Worlds first commercial wave power plantenters service in Mutriku (Spain)


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Voith is one of the few companies of a comparablesize with a Corporate Service Center in Shanghai


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Intensifying Local Value Creation:Expansion of Voith Paper City Kunshan

2012 2012 2012


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Hybrid Development Center in the USA: Researchfor local requirements. Goal: Hybrid-drive buses for

the US-American market.


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Our Philosophy: Contributing to the Sustainable

Development of National Economies

Voith products are used in key positions of essential valueadded chains.

With our products and solutions we are making a vital

contribution to:

- Protecting resources- Providing good living conditions for millions of people- Further development of economy and society


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No Energy Transition Without Hydro Power

Major orders for classichydro power in growth andemerging markets:

Belo Monte, Teles Pires(Brazil)

Saratovskaya (RUS)Yang Qu, Yan Tan (China)

Orders for pumped storage

plants as a backbone of energytransition:

Frades II, PortugalHongrin-Lman, France


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No Sustainable Mobility Without

Public Transport

Orders for:Public transport projects in:Washington D.C. and Chicago,Monorail So Paulo,Helsinki Tram

DIWA transmissions for buses in:So Paulo, Panama, Singapore,Macao


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Resource-Sparing Production for Modern Paper

Mills First Voith Eco-Mill Enters Service

Bereit fr die Zukunft | Bilanzpressekonferenz | 13.12.2011


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Preserving Identity, Values and Universal

Management Structures

Voith an attractive employer

Binding social standards worldwide

Education and further training as an obligation


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Long-term staff loyalty worldwide:

313 Voithians in Shanghai celebrate 10 and

more years at Voith


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Focus on Employee Safety

Ziel

Oct 11

3.8

2010/11

4.7

2009/10

6.7

2008/09

13.9

2007/08

19.4

2006/07

22.8

Work Accidents per Million Working HoursVoith Group


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We are committed to training and education: Voithcelebrates 100 years of employee training and

openes career perspectives for approx. 1 250 young

people in 2011


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Conclusion 2011: Voith Has Utilized its Opportunities

and can continue to grow with its own strength

Achieved record results

Kept up high tempo

Preserved values and culture of the family-owned company

Voith:

We stayed true to ourselves.


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27Ready for the Future | Balance Sheet Press Conference | 13/12/2011

Agenda

1. Highlights 2011 (Dr. Hubert Lienhard)

2. Financial Result 2011 (Dr. Hermann Jung)



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Orders Received: Robust Increase

Orders Received Group(in millions)

2008/2009 2010/2011

Good value of previous year topped byapprox. 20 percent

Book-to-bill rate continues to be >1

Orders in hand rise to 6 billion (previous

year 5.4 billion)

2009/2010

4,9585,300

6,358


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2008/2009

2009/2010

2010/2011

2008/2009

2009/2010

2010/2011

2,000

1,500

1,000

500

2,000

1,500

1,000

500

2,000

1,500

1,000

500

2,000

1,500

1,000

500

Strong New Business in All Four Group Divisions

Voith Hydro Voith Industrial Services

Voith Paper Voith Turbo

Orders Received Group Divisions

(in millions)

2008/2009

2009/2010

2010/2011

Voith Hydro benefits from positivedevelopment of hydro power market

Slight increase at Voith Industrial Services

Voith Paper on high level with stable new

business

Dramatic rise of orders received for Voith

Turbo, carried by Industry and Road2008/2009*

2009/2010*

2010/2011

*Values of previous year adapted due to modified reporting structure.


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Balanced Regional Distribution

2,000

1,500

1,000

500

2,000

1,500

1,000

500

2,000

1,500

1,000

500

2,000

1,500

1,000

500

Germany Other Europe

America Asia

Orders Received Regions*

(in millions)

2008/2009

2009/2010

2010/2011

2008/2009

2009/2010

2010/2011

2008/2009

2009/2010

2010/2011

2008/2009

2009/2010

2010/2011

Increase in Europe underlines strongposition of Voith in developed markets

Increase of region America due to major

hydro power projects in Brazil

Healthy regional distribution

*Without other regions.


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Sales: Continuous Growth

Growth accelerated compared to previousyears in light of positive development of

world economy

Voith benefits from balanced product

portfolio and broad regional positioning

5,0855,198

5,594

Sales Group

(in millions)

2008/2009 2010/20112009/2010


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Growth in All Four Group Divisions

2,000

1,500

1,000

500

2,000

1,500

1,000

500

2,000

1,500

1,000

500

2,000

1,500

1,000

500

Voith Hydro Voith Industrial Services

Voith Paper Voith Turbo

Sales Group Divisions

(in millions)

Voith Hydro benefits from strong marketposition in emerging markets

Voith Industrial Services grows owing to

positive development in nearly all

customer industries

Asia a key sales driver for Voith Paper

Voith Turbo with growth in all business

divisions

2008/2009

2009/2010

2010/2011

2008/2009

2009/2010

2010/2011

2008/2009

2009/2010

2010/2011

2008/2009*

2009/2010*

2010/2011

*Values of previous year adjusted due to modification of internalreporting structure.


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1,500

1,000

500

1,500

1,000

500

Broad Regional Distribution Significant Growth in

Germany and Asia

Germany Other Europe

America Asia

Sales Regions*

(in millions)

1,500

1,000

500

1,500

1,000

500

Early involvement in growth marketspays off

Europe (incl. Germany) remains important

sales market

*Without other regions.

2008/2009

2009/2010

201/2011

2008/2009

2009/2010

2010/2011

2008/2009

2009/2010

2010/2011

2008/2009

2009/2010

2010/2011


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Operational result before

non-recurring result Group

(in millions)

Operational Result: Operative Profitability in Group

Significantly Increased

Income grows disproportionately to sales All Group Divisions with two-digit increase

in income

2008/2009 2010/20112009/2010

324353

416


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Net Income Group

(in millions)

Net Income: Robust Growth in Profit

Profitability further improved: Net incomegrows by 64 percent

Increase driven by higher sales, improved

order situation and moderate cost

development

2008/2009 2010/20112009/2010

77

121

200


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132

Net Debt Group

(in millions)

Net Debt: Further Reduced

0

-52

2008/2009 2010/20112009/2010


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Investments and R & D Expenditure:

Continue on High Level

3.8 percent investment quota inproduction and market positioning

4.6 percent R&D quota

Just under 50 percent of investments in

Germany, other focal areas forinvestment: Asia and America

Research focus on: resource-sparing

technologies

Investments Group

(in millions)

2008/2009 2010/20112009/2010

Research and Development Group

(in millions)

255234

211

254 266 259

2008/2009 2010/20112009/2010


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Employees: Noticeable Workforce Expansion

Targeted and demand-oriented workforceexpansion in Germany and in Asian

growth regions

Training schemes strengthened further:

1,246 apprentices and students worldwide

Employees Group

as at September 30

2008/2009 2010/20112009/2010

39,32939,754

40,691


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2010-09-30

2,408

1,858

227

323

3,494

784

1,140

1,217

353

5,902

Consolidated Balance Sheet Assets

in millions

Non-current assets

Property, plant equipment and intangible assets

Financial assets

Other non-current assets

Current assets

Inventories

Trade receivables

Cash and marketable securities

Other current assets

Total assets

2011-09-30

2,478

1,881

322

275

3,338

822

1,151

977

388

5,816


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Consolidated Balance Sheet - Liabilities

in millions

Equity

Non-current liabilities

Provisions

Financial liabilities

Other non-current liabilities

Current liabilities

Provisions

Financial liabilities

Other current liabilities

Total liabilities

2010-09-30

1,107

2,015

573

1,180

262

2,780

362

296

2,122

5,902

2011-09-30

1,287

1,762

579

934

249

2,767

330

327

2,110

5,816


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Consolidated Statement of Income (1)

in millions 2010/11 2009/10

Sales 5 594 5 198

Increase in inventories and capitalized costs 27 -5

Total output 5 621 5 193

Cost of material -2 309 -2 081

Value added 3 312 3 112

HR expenses -1 983-1 851

Depreciation -189 -163

Other operating expenses (balance) -724 -745

Operational result before non-recurring result 416 353


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Consolidated Statement of Income (2)

in millions

Operational result before non-recurring result

+ Non-recurring result

Operational result

+ Income from investments/other financial income

+ Interest result (balance)

Income before taxes

Taxes

Net income

2009/10

353

-13

340

-35

-71

234

-113

121

2010/11

416

-14

402

2

-82

322

-122

200


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Consolidated Cash Flow Statement

in millions

Net income

+ Depreciation

+ Changes in provisions and accruals

+ Other non-cash items

+ Changes in other operating assets and liabilities

+ Gains/losses from sales of non-current assets and securities

Cash flow from operating activities

2009/10

121

206

6

16

44

-3

390

2010/11

200

192

-13

-20

-106

-9

244


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Voith 2011: Strong Figures Good Financial Basis

Financial power of the Group has been strengthenedsustainably solid foundation for financing future growth

Order books are well filled high utilization of our

capacities is secured

Profitability significantly improved continuation ofsustainable and profitable course for growth


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Agenda

1. Highlights 2011 (Dr. Hubert Lienhard)2. Figures 2011 (Dr. Hermann Jung)



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The Environment Remains Challenging

Continuation of Euro and US-Dollar debt crisis

Capital market environment remains unstable

Predicted slowdown of global economy


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Voith is Prepared

High order backlog

Emerged even stronger after the crisis in 2008

In financial health and independent


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Voith in comparison*

80

90

100

110

120

130

140

150

2011201020092008

Operational result Voith **

Sales Voith

GDP Germany

Even Stronger After the Crisis Result Quality Significantly Improved

* Indexed representation: value index : 2008=100; Source: Voith, Statistisches Bundesamt Deutschland, IMF.

** Adjusted by figures from non-recurring results.


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Significant Operative Improvements Since 2008

Net debt reduced to zero, i. e. net assets

Equity ratio increased to more than 22 %

Liabilities reduced by 300 million

Group sales rose by 685 million

Return on sales and on capital employed further increased


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Financial Healthy and Independent

Satisfactory liquidity Good equity base

Good access to loan capital


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Our Credo for the Next Few Months

What happens, happens

... Voith is prepared.

Operative and strategic freedom for Voith is secured.


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Outlook 2012: Another Good Year for Voith

Orders received Sales

Equity ratio Net income

Operational result

Net debt

0


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balance sheet press conference, stuttgart 13 december 2011

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