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Cem Peksaglam (CEO) Günther C. Binder (CFO) August 4, 2015 Results Q2 2015

Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

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Page 1: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

Cem Peksaglam (CEO) – Günther C. Binder (CFO)

August 4, 2015

Results Q2 2015

Page 2: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

Agenda

2

Outlook

Overview Q2/15

and H1/15

Financials Q2/15

and H1/15

Page 3: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

Q2 and H1/15 at a glance – High and Low Lights At a glance

Increase in revenue despite market crises in many countries mainly outside of Europe and US (revenue share light equipment ↓)

Change in product and regional mix impacted margins (revenue share compact equipment ↑; high margin service business ↓)

Strengthening position in core markets

Increase in agricultural business despite negative market development

Further increase of working capital leads to negative free cash flow for H1

Q2/15: Strong increase in revenue; investment in further growth effect profit

Revenue: +16% yoy to EUR 382 m (adjusted for currency effects: +10%); Q2/qoq +18%

EBITDA: -11% yoy to EUR 51 m; margin: 13.3% (Q2/14: 17.3%)

EBIT: -18% yoy to EUR 34 m; margin: 8.9% (Q2/14: 12.6%)

EPS: -15% yoy to EUR 0.34 (Q2/14: EUR 0.40)

H1/15: Peaks in revenue and earnings

Revenue: +14% yoy to EUR 706 m (adjusted for currency effects: +8%)

EBITDA: +6% yoy to EUR 98 Mio. Euro; margin: 13.9% (H1/14: 15.0%)

EBIT: +4% yoy to EUR 66 Mio. Euro; margin: 9.3% (H1/14: 10.2%)

EPS: +6% yoy to EUR 0.64 (H1/14: EUR 0.61)

3

New record in H1 revenue and earnings

Page 4: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

Worldwide sales construction machinery Q1/15

4

Europe:

+6%

Rest of Asia:

-10%

North America:

+14%

Latin America:

-24%

China:

-40%

India:

+/-0%

Russia:

-70%

Oceania:

-8%

Africa:

-13%

Sales of earth-moving machinery; Source: VDMA, ISC-Statistics

Growth only in North America and Europe

Page 5: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

H1/15: Strong revenue growth in Euros1

459,2510,3

H1/14 H1/15

5

Europe2

+11% (+10%)

203,4 213,2

H1/14 H1/15

Light equipment3

+5% (-6%)

143,4

175,0

H1/14 H1/15

Americas2

+22% (+3%)

297,2

370,2

H1/14 H1/15

Compact equipment3

+25% (+22%)

17,421,1

H1/14 H1/15

Asia-Pacific2

+21% (+8%)

127,9 133,4

H1/14 H1/15

Services3

+4% (-0%)

1 In brackets: adjusted for currency effects; 2 Nominal, after cash discounts; 3 Nominal, before cash discounts

(€ million)

(€ million)

(€ million)

(€ million)

(€ million)

(€ million)

Page 6: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

Three year comparison

257292

324 329 328

382

586620

706

0,0%5,0%10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%50,0%55,0%60,0%65,0%70,0%75,0%80,0%85,0%90,0%95,0%100,0%

0

100

200

300

400

500

600

700

800

Q1/13 Q1/14 Q1/15 Q2/13 Q2/14 Q2/15 H1/13 H1/14 H1/15

6

Exceptional high EBIT Margin in Q2/14

(Revenue in € million)

EBIT Margin 4.3% 7.6% 9.8% 8.9% 12.6% 8.9% 6.9% 10.2% 9.3%

Page 7: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

(Revenue in € million; EBIT Margin as a %)

Long term growth on track

7

Revenue and EBIT Margin H1 (2011–2015)

+14%

+6%

+5%

+17%

+48%

Revenue EBIT

+35%

Page 8: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

(€ million) H1/11 H1/12 H1/13 H1/14 H1/15 CAGR H1/15 vs. H1/11

Revenue 478.7 558.1 586.1 620.0 706.4 10.2% 47.6%

EBIT 48.6 49.2 40.4 63.4 65.7 7.8% 35.2%

Net income 31.5 30.9 24.9 42.5 45.2 9.4% 43.5%

CFI1 -52.5 -59.1 -49.6 -51.9 -54.7

CFI – D&A2 -29.5 -32.1 -20.2 -22.4 -22.3

Total assets 1,130.4 1,323.6 1,393.9 1,403.4 1,615.8 9.3% 42.9%

Equity3 839.6 902.7 913.0 951.9 1,045.9 5.6% 24.5%

Dividend4 11.9 35.1 21.0 28.1 35.1

Market Capitalization 833.3 732.3 725.9 1,204.3 1,318.6 12.2% 58,2%

Number of employees 3,285 3,907 4,093 4,217 4,573 8.6% 39.2%

Long term growth on track

8

5 years comparison

1 Cash flow from investment activities; 2 Depreciation & Amortization; 3 before minority interests; 4 for the previous FY

Page 9: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

Agenda

9

Outlook

Overview Q2/15

and H1/15

Financials Q2/15

and H1/15

Page 10: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

Q2/15: Revenue increase

10

Q2/15 As % of

revenue

Q2/14 As % of

revenueChange in %

Revenue 382.1 100.0 328.4 100.0 16.4

Gross profit 111.1 29.1 100.9 30.7 10.1

Sales and service expenses 48.6 12.7 41.3 12.6 17.7

Research and development expenses 9.3 2.4 6.9 2.1 34.8

General administrative expenses 17.8 4.7 14.9 4.5 19.5

Operating expenses1 75.6 19.8 63.0 19.2 20.0

EBITDA 50.8 13.3 56.8 17.3 -10.6

EBIT 34.0 8.9 41.3 12.6 -17.7

Net profit 23.9 6.3 28.2 8.6 -15.2

Net profit per share in € 0.34 0.40

Number of employees 4,573 4,217 8.4

Income statement (extract) and number of employees

(€ million)

1 without other income/expenses

Page 11: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

H1/15: Revenue increase

11

H1/15 As % of

revenue

H1/14 As % of

revenueChange in %

Revenue 706.4 100.0 620.0 100.0 13.9

Gross profit 207.5 29.4 186.7 30.1 11.1

Sales and service expenses 93.9 13.3 83.3 13.4 12.7

Research and development expenses 17.4 2.5 13.8 2.2 26.1

General administrative expenses 35.2 5.0 30.7 4.9 14.7

Operating expenses1 146.5 20.7 127.8 20.6 14.6

EBITDA 98.2 13.9 93.0 15.0 5.6

EBIT 65.7 9.3 63.4 10.2 3.6

Net profit 45.2 6.4 42.5 6.9 6.4

Net profit per share in € 0.64 0.61

Number of employees 4,573 4,217 8.4

Income statement (extract) and number of employees

(€ million)

1 without other income/expenses

Page 12: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

Cost structure

12

Operating expenses: 21% of group revenue

257

329

276297 292

328316

348

324

382

15,9%14,2% 13,9% 13,7% 14,4%

12,6% 13,2% 13,1% 13,9%12,7%

2,8% 2,1% 2,4% 1,7% 2,4% 2,1% 2,3% 2,2% 2,5% 2,4%

7,3%

4,8% 5,2% 6,1% 5,4% 4,5% 5,0% 4,9% 5,4% 4,6%

26,0% 21,1% 21,5% 21,6% 22,2%

19,2%20,6% 20,1%

21,8%19,8%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

0

50

100

150

200

250

300

350

400

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15

Revenue Sales expenses, R&D costs &General and administrative expenses

Sales expenses R&D costs General and administrative expenses

(€ million; as % of revenue)

1 before capitalized expenses; H1/15 incl. capitalized expenses 3.2%

1

H1/13: 23.2% H1/15: 20.7%H1/14: 20.6%

Page 13: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

H1/15: Development of profit per region

13

EBIT-change by region H1/15 vs. H1/14

(€ million)

0

10

20

30

40

50

60

70

80

EBIT H1/14 Europe Americas Asia-Pacific Consolidation EBIT H1/15

H1/15 vs. H1/14 Europe Americas Asia-Pacific Total

Revenue +11% +22% +21% +14%

EBIT +13% +25% +166% +4%

EBIT Margin (H1/14)1 8.2% (8.4%) 2.6% (2.6%) 3.6% (1.8%) 9.3% (10.2%)

63.4

+8.2 +2.4 +0.8 -9.1

65.7

1 EBIT Margin of regions on total external sales

Page 14: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

H1/15: Working capital development

14

213,3327,6 338,8 355,6

494,9177,5

176,3210,3 204,1

234,4

-69,0 -67,7 -62,4 -72,0 -98,7

June 30, 2011 June 30, 2012 June 30, 2013 June 30, 2014 June 30, 2015

Inventories Trade receivables Trade payables

Working Capital ratio (3M annualized revenue)

30.1% 38.4% 37.0% 37.1% 41.3%

Increase of inventories enables flexibility for short-term demand support revenue increase

(€ million)

+15%

WC: +29%

630.7

487.7

+37%

+39%

486.7436.2

321.8

Working capital H1/11 – H1/15

Page 15: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

H1/15: Investments and cash flow development

H1/14 H1/15

H1/14 H1/15

H1/14 H1/15

(€ million)

H1/14 H1/15

(€ million) (€ million)(€ million)

-1.0

-43.2-51.9

-54.7

29.632.5

52.9

11.5

Cash flow from

investment activitiesDepreciation

Cash flow from

operating activitiesFree cash flow

Decrease of operating cash flow due to investments in working capital positive free cash flow FY 2015 expected

+5%

+10%

15

-78%

Page 16: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

69

195255

203256

840907 913

952

1.046

8%

22%

28%

21%

25%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

200

400

600

800

1.000

H1/11 H1/12 H1/13 H1/14 H1/15

Net financial debt Equity before minority interests Gearing as a %

H1/15: Gearing and equity

16

High equity ratio of 65%, increase of net debt by 26% due to WC increase

(€ million)

Equity, net debt and gearing H1/11 – H1/15

+26%

Page 17: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

Share price development since Jan. 1, 2015

17

in € 2011 2012 2013 2014 H1/14 H1/15

Earnings per share 1.22 0.77 0.87 1.30 0.61 0.64

Dividend payment 0.50 0.30 0.40 0.50 – –

End of period 9.55 10.35 11.49 16.96 17.17 18.80

High 13.49 13.45 12.75 18.00 17.65 24.60

Low 8.35 9.06 9.24 11.49 11.73 16.30

Market capitalization (in € m) 669.8 725.9 805.6 1,189.2 1,204.3 1,318.6

ISIN / WK DE000WACK012 / WACK01

Reuters /

Bloomberg

WACGn.DE / WAC GR

Indices SDAX, DAXplus family, CDAX,

GEX, Classic All Shares

Share Prime All Share

Total shares 70.140.000

Shareholder

structure

63% Family; 37% Free float

(thereof management: 0.5)

* Manitou, Haulotte, Palfinger, Caterpillar, Terex,

Ramirent, Cramo, Atlas Copco, Bauer, Deutz*

Share price performance

Key figures share

+8%

Page 18: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

Agenda

18

Outlook

Overview Q2/15

and H1/15

Financials Q2/15

and H1/15

Page 19: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

0

5

10

15

20

25

30

0,0

200,0

400,0

600,0

800,0

1.000,0

1.200,0

1.400,0

1.600,0

2014 2015e

Forecast 2015 (unchanged)

17

(Revenue in € billion)

Revenue and Margins 2014–2015e Wacker Neuson Group H2/15e

1.28

+9-13%

EBIT margin

10.6%

1.40–1.45

EBIT margin

9.5-10.5%

Solid development in core markets (Europe, USA)

Greater penetration in core markets

(especially via cross-selling)

Growth in service segment with influence on margins

Full order book promises good visibility

New technologies and innovations

Focus on diversification (target groups)

Process optimization, leveraging synergies

Decrease of working capital, increase free cash flow

Less positive impact from FX effects

Regional drop in demand

(e.g. Brazil, Canada, Russia)

Industry crises (Mining, Ag, Oil & Gas)

Page 20: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

Financial calendar and IR contact

19

Financial Calendar 2015

August 04 Publication of half-year report 2015

September 10 Commerzbank Sector Conference 2015, Frankfurt

September 22 Baader Investment Conference 2015, Munich

September 23 Fourth German Corporate Conference 2015, Munich

November 12 Publication of nine-month report 2015,

Analyst Conference, Frankfurt

November 23-25 German Equity Forum 2015, Frankfurt

Numerous international trade fairs, roadshows and conferences

IR contact

Investor Relations Department

Preussenstrasse 41, 80809 Munich, Germany

Phone: +49-89-35402-713, Fax: +49-89-35402-298

[email protected]

Page 21: Results Q2 2015 - Wacker Neuson Group · 2019. 9. 20. · Results Q2 2015. Agenda 2 Outlook Overview Q2/15 ... 2012 June 30, 2013 June 30, 2014 June 30, 2015 Inventories Trade receivables

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 correctness of this information or opinions contained herein.

Certain statements contained in this document may be statements of future expectations and other forward

looking statements that are based on management‘s current view and assumptions and involve known and

unknown risks and uncertainties that could cause actual results, performance or events to differ materially

from those expressed or implied in such statements.

None of Wacker Neuson SE or any of its affiliates, advisors or representatives shall have any liability

whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its

content or otherwise arising in connection with this document.

This document does not constitute an offer or invitation to purchase or subscribe for any securities and neither

it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment

whatsoever.

DisclaimerCautionary note regarding forward-looking statements

20