Reference (apr02)
Annual General Meeting 2013 – Management report
Munich, May 28 2013
Cem Peksaglam (CEO)
Reference (apr02) 2
Overview
Financial year
2012
bauma 2013
Annual General
Meeting
Strategy & Outlook
Share
Financials
Q1/13
Reference (apr02)
Summary – 2012: In line with guidance
3
Highlights
Successful placing of Schuldschein loan in the amount of EUR 120 m (oversubscribed 2,5 times)
New production in Austria, expansion of production capacity
Introduction of new M-series light equipment products for Asia (Bauma 2012 Shanghai)
Alliances with Caterpillar and Claas on track
Changes in Executive Board
Financials FY 2012 vs. 2011
Guidance 2012: appr. EUR 1.1 bn revenues, 13-15% EBITDA margin
Revenue growth: +10% yoy to EUR 1,092 m (record year)
EBITDA -13% yoy to EUR 142 m (margin 13.0%; 2011 16.4%)
EBIT -31% (-25% adjusted1) yoy to EUR 85 m (EBIT margin: 7.8%; 2011: 12.5%/adjusted: 11.4%)
Growth driver Americas (+20% yoy), solid growth in Europe despite difficulties (+7% yoy)
Solid financing structure, gearing end of year: 23%
Higher working capital due to revenue growth, better delivery capabilities and emission regulations
1 Compared 2011 figure adjusted for reversal of impairment in the amount of EUR 10.8 million.
Reference (apr02)
Executive Board and Supervisory Board
4
Executive Board
Hans Neunteufel (chairman)
Dr. Matthias Bruse
Dr. Eberhard Kollmar
Kurt Helletzgruber
Elvis Schwarzmair (employee representative)
Hans Haßlach (employee representative)
Cem Peksaglam
CEO
Strategy/M&A, Sales, Logistics,
Service, Marketing, Investor
Relations, Corporate
Communication, Compliance,
HR, Legal issues, Real Estate
Supervisory Board
Martin Lehner
CTO
Purchasing, Production,
Technology, Quality
Management
Günther C. Binder
CFO
Finance, Group auditing, IT
Reference (apr02)
2012: Record mark in revenue
(revenue in € million) (EBITDA margin as %)
Annual comparison 2009 - 2012
5
1,092
13.0%
992
16.4% 597
4.6%
758
10.3%
+83% +10%
Reference (apr02) 6
Income statement FY 12 (extract)
2012: Solid growth of revenues despite challenges
(in € million)
1 without other income/expenses 2 incl. PPA = Purchase Price Allocation on EBIT: 2012: EUR -4.0 million (2011: EUR -3.5 million), Q4/2012: EUR -0.9 million (Q4/2011: EUR -0.9 million) 3 without write-ups of brand impairment of EUR 10.8 million in 2011
2012 As %
of revenue 2011
As %
of revenue Change
Revenue 1,091.7 100.0 991.6 100.0 10.1%
Gross profit 331.5 30.4 323.1 32.6 2.6%
Sales and service expenses (160.6) (14.7) (139.5) (14.1) 15.1%
R&D expenses (26.8) (2.5) (21.9) (2.2) 21.9%
General administrative expenses (62.2) (5.7) (60.6) (6.1) 2.8%
Operating expenses1 (249.5) (22.9) (222.0) (22.4) 12.4%
EBIT2 84.9 7.8 123.8 12.5 (11.4)3 -31.4%
Net profit 54.1 5.0 85.8 8.7 -36.9%
Net profit per share in € 0.77 1.22 -36.9%
EBITDA 141.7 13.0 162.6 16.4 -12.9%
Reference (apr02) 7
Breakdown of operating cost: 2008–2012
Strict cost control
27.0%
34.0%
27.3%
(in € million) (in % of revenue)
22.4%
203 207 222
250
+6 %
Reference (apr02)
Profit 2012 was influenced by a number of factors
Alignment of the cost structure with higher
revenue levels and expected growth
(including an increase in headcount)
Increased depreciation due to higher
investment over previous years
The positive one-off item in 2011, whereby
an impairment reversal added an extra EUR
10.8 million to profit before interest and tax
(EBIT)1
Demand- and market-related effects
Group increasingly felt the impact of weak
demand in Europe (the Group’s core market)
Sales structure (product and regional mix)
shifted slightly
Group further increased efforts to penetrate
core and new markets – some of which are
extremely competitive
One-off effects in 2012
Relocation to new production facility,
delivery delays
Factors in 2012 Factors compared to 2011
1 In 2011, an impairment test carried out on the basis of projected figures revealed that a write-up in the amount of EUR 10.8 million was required on the
brand value following a comparison of the net book value of the Group’s goodwill and brands with the fair market value in 2011. This write-up did not affect
liquidity.
8
Reference (apr02) 9
2012: Each quarterly revenue exceeded 2011 levels
Revenue and EBITDA margin per quarter
(Revenue in € million) (EBITDA margin as %)
254
279 264
249
284 267 274
212
11.2
15.7 13.4
19.9
13.1
17.1
12.2 14.2
+29.3% +6.5%
+2.2% +5.7%
Reference (apr02)
+7%
36.7 39.1
10
Europe1
(in € million)
Americas1
(in € million)
Asia-Pacific1
(in € million)
Light Equipment2 Compact Equipment2
(in € million)
Services2
+7% 723.9 776.4 +20%
231.0 276.2
(in € million)
+8%
371.8 400.4
+12%
416.9 466.5
+11%
215.7 239.2
2011 2012 2011 2012 2011 2012
2011 2012 2011 2012 2011 2012
2012: Revenue growth in all regions and segments
(in € million)
1 after Cash Discounts 2 before Cash Discounts
Reference (apr02) 11
2012: Balanced revenue mix
As % (previous year)
Light Equipment 36 (37)
Compact Equipment 42 (42)
Services 22 (21)
Business segments Industries
As % (previous year)
Construction and various
industries 63 (63)
Agriculture 15 (16)
Services 22 (21)
As % (previous year)
Europe 71 (73)
Americas 25 (23)
Asia-Pacific 4 (4)
Regions
Industry, business segment and regional mix give the company a high degree of stability.
Agriculture, Asia Pacific and Emerging Markets with greatest potential.
Reference (apr02) 12
(jobs) +17% (+581 jobs)
3,514 4,096
2012: Growth of headcount according to increased sales
2011–20121
Adjusted by consolidation effect of Serbian factory, headcount grew by 10% yoy,
in line with revenue.
(jobs) +10% (+337 jobs)
3,514 3,851
2011 2012
2011–2012 excl. Serbia
1 Includes consolidation of Serbian production company as of January 1, 2012 (+245 jobs)
2011 2012
Reference (apr02)
Ready for growth: Capex of EUR 475 million (since 2007)
(in € million)
102
43
85
114
In 3 years: EUR 303 million
Total capex1: 2007–2012
104
13
84
1 in Property. Plant and equipment und intangible assets 2 Oct. 1, 2007 (Merger), capex group in Q4 2007 (Wacker and Neuson Kramer)
252
Reference (apr02)
Dec. 31, 12 Dec. 31, 11 Change vs. Dec. 31, 11
Equity ratio (before minorities) in % 68.0 74.2 -6.2 pp
Gearing in % 23.4 10.0 +13.4 pp
Net debt in EUR m 214.2 90.4 +136.9%
2012: Healthy financials – enhanced financial structure
14
High equity ratio in industry, low gearing
Net financial debt in €m
Equity before minority interests in €m
Gearing as a %
Equity ratio before minority interests
as a %
Reference (apr02)
Wacker Neuson events 2012
15
April: Intermat in Paris (one of 30 fairs 2012) (1)
June: Wacker Neuson opens doors at three facilities (2)
November: Bauma China 2012, Shanghai (3)
(1)
(2)
(2) (3)
Intermat, Paris (F)
Reichertshofen (D)
(3)
(4) Bauma China, Shanghai (CN)
Milwaukee (USA)
(2)
Weidemann in Korbach (D)
(2)
(3)
(3)
Reference (apr02) 16
Starting production in new facility in Hörsching, September 2012
Reference (apr02)
Relaunch Web Page, November 2012
„All-in-one“ internet presence over all entities
17
Light- and
Compact
Equipment on
one platform
Simple navigation
Fast access to
product
information
Customer focus:
access via sectors
In 13 languages
available
Reference (apr02) 18
Overview
Financial year
2012
bauma 2013
Annual General
Meeting
Strategy & Outlook
Share
Financials
Q1/13
Reference (apr02)
Summary – Q1/13: A weak European economy
19
At a glance
Ongoing macro-economical uncertainties and volatility in Europe
Harsh winter in northern hemisphere
Dragging development in the US-infrastructure sector
Time lag: many customers putting off orders until bauma exhibition in April
Q1/13 vs. Q1/12
Revenue dropped by 6% qoq to EUR 257 m
Comparison to a strong previous quarter Q1/12 (+29% to Q1/11)
Alignment of WN cost structure to higher budget revenue, activities to increase market
penetration and preparation for bauma fair impacted earnings:
EBITDA dropped by 36% qoq to EUR 25 m (margin: 9.7%, Q1/12: 14.2%)
EBIT dropped by 58% qoq to EUR 11 m (margin: 4.3%, Q1/12: 9.6%)
Reference (apr02)
Q1/13: High variations and less visibility
Quarterly comparison Q1/10–Q1/13
(Revenue in €m)
20
-6% +29%
+41%
+21%
+71%
9.7%
14.2%
12.2%
2.4%
EBITDA margin in %
Reference (apr02)
Q1/12 Q1/13Q1/12 Q1/13Q1/12 Q1/13
Q1/12 Q1/13Q1/12 Q1/13Q1/12 Q1/13
+2%
8.1 8.3
21
Europe1
(in € million)
Americas1
(in € million)
Asia-Pacific1
(in € million)
Light Equipment2 Compact Equipment2
(in € million)
Services2
-8% 194.9 179.3
-2%
70.9 69.5
(in € million) -8%
102.0 93.7
-9%
127.5 116.6 +3%
48.2 49.7
Q1/13: Dampened revenues in core markets
(in € million)
1 Nominal, before Cash Discounts
2 Nominal, after Cash Discounts
Reference (apr02) 22
Q1/13
As % of
revenue
Q1/12
As % of
revenue
Change
in %
Revenue 257.1 100.0 274.0 100.0 -6.2
Gross profit 75.0 29.2 84.9 31.0 -11.6
Sales and service expenses 40.9 15.9 38.2 13.9 7.1
Research and development
expenses 7.2 2.8 6.3 2.3 13.5
General administrative expenses 18.7 7.3 15.4 5.6 21.7
Operating expenses1 66.8 26.0 59.9 21.9 11.5
EBITDA 24.8 9.7 38.8 14.2 -36.0
EBIT2 11.1 4.3 26.3 9.6 -57.9
Net profit 6.4 2.5 17.1 6.3 -62.4
Net profit per share in € 0.09 0.24 0.1 -62.4
Income statement (extract)
Q1/13: Revenue decrease and one-offs reduced margins
(€ million)
1 without other income/expenses 2 incl. PPA = Purchase Price Allocation on EBIT: Q1/13: EUR -0.9 million (Q1/12: EUR 0,9 million)
Reference (apr02) 23
(jobs)
+8% (+306 jobs)
3.806 4.112
Q1/12 Q1/13
(jobs)
+0,3% (+16 jobs)
4.096 4.112
Q4/12 Q1/13
Q1/13: Development of headcount
Q1/12–Q1/13
Cautious increase in headcount vs. 2012;
stable headcount since beginning of the year.
Q4/12–Q1/13
Reference (apr02) 24
Overview
Financial year
2012
bauma 2013
Annual General
Meeting
Strategy & Outlook
Share
Financials
Q1/13
Reference (apr02)
Bauma 2013 (April 15. – 21.)
25
Wacker Neuson: appr. 6.000 m² exhibition area
Reference (apr02)
Bauma 2013: 530.000 visitors (record high)
26
Impressions
Reference (apr02)
Excellent media response
27
Examples
Reference (apr02)
Innovations at bauma 2013
Light equipment (examples)
Compatec compaction
control RTx: two trench rollers in
one unit
The new EH 100 electric
demolition breaker
28
Reference (apr02)
Innovations at bauma 2013
29
LTN 6LV light tower
Light equipment (examples)
The new external
vibrator series
Gasoline-driven floor
saw series Light balloon LBS 80M
Reference (apr02)
Innovations at bauma 2013
30
Compact equipment (example)
803 mit dual power
The first series excavator by Wacker neuson with an electro-hydraulic drive Hydraulic
power unit (HPU)
Can be connected alternatively to the diesel engine via „plug & play“
Reference (apr02) 31
EZ28 Telematic
vds (vertical digging system)
vls (vertical lift system)
Compact Equipment
Alternative drive
systems for
compact machines
Innovations at bauma 2013
Reference (apr02)
ECO
ECO = ECOlogy + ECOnomy
Seal for particularly environmentally friendly and economic product solutions
Commitment to the Blue Competence sustainability initiative of VDMA
32
Innovations at bauma 2013
Reference (apr02)
Target group: users, machine operators
Exclusive club-benefits:
– Prize games
– Product- and company information
– Diverse club-events
– Own club-collection
33
New products for our customers
Wacker Neuson Club & Kids Collection
Emotional attention in the early age
Awake enthusiasm for our sector
Reference (apr02)
Wacker Neuson Sales-Team
34
Impressions
Reference (apr02) 35
Overview
Financial year
2012
bauma 2013
Annual General
Meeting
Strategy & Outlook
Share
Financials
Q1/13
Reference (apr02)
Strategy
36
Increasing penetration in core markets (e.g. leveraging cross selling opportunities)
Focus on diversification (e.g. different industries)
Tap on synergies (e.g. between light and compact equipment)
Expand international footprint: in the long run, revenues outside of Europe appr. 50%
Further alliances
Profitable growth
Reference (apr02)
Diversification through target markets
37
Energy Gardening, landscaping Maintenance
Logistics Events
37
Demolition
Reference (apr02)
Different brands for different markets
Construction industry, gardening and
landscaping, municipal bodies, industrial and
recycling sectors, etc.
Agricultural industry
Reference (apr02)
Umbrella brand for overarching Group communication and brand differentiation
Conscious use of different typography to set apart from product brands
Logo is used as unifying element across all brands
Further brands (e.g. acquired through M&As) can be integrated easily and quickly
39
Introducing our umbrella brand
Clear delineation between product brands and Group`s umbrella brand
Reference (apr02)
Construction industry Agriculture
Strategic alliances
Reference (apr02) 41
Brazil India
Turkey China Russia
South Africa
Internationalization - Emerging Markets
Reference (apr02)
M-Series Light Equipment: Focus on market-conform product offering
42
The new series
has been developed for China
is made for local needs and robust, locally competetive
meets the high quality requirements of Wacker Neuson
to be distributed within other Emerging Markets in future
Products for Emerging Markets
Generator
Light Tower Vibratory Plate Rammer
Pump
Wacker Neuson China:
Hong Kong (1997) as well as
Shanghai, Peking und Shenzen
(2006)
Production Manila, Philippinen
Reference (apr02) 43
2013: Europe economic trends
Financial problems in eurozone curb growth in 2013
*BRICS= Brazil, Russia, India, China, South Africa, mean
Source: IWF-forecast, WEO April 2013
Change of GDP 2013 as in %
Reference (apr02)
Still headroom for Wacker Neuson to grow in Europe
44
Total Construction Output in Central Europe (D-A-CH)
Euroconstruct December 2012
(in € million at 2011 prices)
-2.0% +2.0%
+0.1%
+2.3%
+1.7% +1.0%
+4.7%
Reference (apr02) 45
US construction market
Market stil behind pre-crisis level
Source: McGraw-Hill Construction, Construction and Housing Review, February 2013
McGraw-Hill Construction’s (MHC): MHC starts turn up or down several months prior to movement in the Census spending data.
Further recovery
Reference (apr02)
0,0
200,0
400,0
600,0
800,0
1000,0
1200,0
1400,0
0
5
10
15
20
25
30
Outlook – Forecast 2013
(revenue in € million) (EBITDA-margin as %)
758
992
1,092
∿1,200
10.3%
16.4%
>13.0% 13.0%
2013: double-digit revenue growth
2013e 2012 2011 2010
cautiously optimistic
Make up the revenue shortfall of Q1/13 as
the year progresses
Europe stays a difficult market with high
regional differences
Solid development of US economy expected,
especially in last two quarters
High demand in Emerging Markets
Strategies of profitable growth are
implemented
Investments 2013: around € 80 million
46
Affirmation of the annual forecast 2013
Reference (apr02) 47
Overview
Financial year
2012
bauma 2013
Annual General
Meeting
Strategy & Outlook
Share
Financials
Q1/13
Reference (apr02)
Key figures share
in EUR
Q1/13
High 12.48
Low 10.35
Average 11.29
Book value per share (03/31/13) 13.09
Earnings per share 0.09
Book value above share price
ISIN DE000WACK012
WKN WACK01
Reuters WACGn.DE
Bloomberg WAC GR
Indices SDAX, DAXplus family, CDAX, GEX, Classic All Shares
Share Prime All Share
Shareholder structure
Free float
32.2
– thereof
management: 0.1
Family
67.8
(As a %)
Peer group performance since start of year (change)
Peergroup: Atlas Copco, Bauer, Caterpillar, Cramo, Deutz, Haulotte, Manitou, Palfinger, Ramirent, Terex
48
As of March 31,2013
80,0
90,0
100,0
110,0
120,0
130,0
140,0
150,0
160,0
Wacker Neuson SDAX DAX Peergroup
Reference (apr02) 49
Overview
Financial year
2012
bauma 2013
Annual General
Meeting
Strategy & Outlook
Share
Financials
Q1/13
Reference (apr02) 50
Annual General Meeting 2013 - Agenda
TOP 1: Presentation of the approved Annual Financial Statements
TOP 2: Resolution on the appropriation of the net profit for the year
TOP 3 and 4: Resolution to approve the actions of Executive /Supervisory Board
TOP 5: Appointment of the auditors for the Annual and Consolidated Financial
Statements for fiscal 2013
Overview
2012 2011 2010 2009 2008 2007
Distribution (in € million)
21.04 35.07 11.9 0 13.33 35.07
Payout ratio (as a %)
38.9 40.9 50.0 - 32.0 40.0
Volume in shares (in million)
70.14 70.14 70.14 70.14 70.14 70.14
Dividend payment (in €)
0.30 0.50 0.17 0 0.19 0.50
Earnings per share (in €) 0.77 1.22 0.34 -1.57 0.53 1.1
Reference (apr02)
Thank you for your attention.