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1 Wacker Neuson Group Working side by side with our customers

Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

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Page 1: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

1

Wacker Neuson Group – Working side by side with our customers

Page 2: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Why Wacker Neuson? 01

What makes us strong? 02

Where are we heading? 03

Appendix: Financial results 04

2

Page 3: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Why Wacker Neuson?

Page 4: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Maximum productivity & machine uptime

Comfortable & intuitive machine handling

Operator health & safety

Service, Partnership, Reliability

Attractive total cost of ownership

We align growth with our customers’ needs

4

Page 5: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

We drive innovation to improve our customers’ processes

5

Dual View Dumper Zero emissionVertical Digging System Onsite Box – mobile shop

Connected products Remote-control steeringHand-arm vibrations Modular design

Wireless handling with no

emissions

Cockpit rotatable by 180°

Shorter process

times due to exact vertical digging

On-site support for

our customers

Flexibility with one battery fitting 7

products

Give your machines a

voice!

Operating equipmentwithout any

time restrictions

Maximizing operator comfort

Page 6: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

We see our customers as our partners

6

Strong customer involvement in R&D

Sophisticated value engineering

Voice

of Customer

Technical

benchmarking

Early involvement

of all functions

Front Loading

With our accelerated

customer-oriented

product development

process, we provide our

customers with the right

features and the best

quality at the best price.

Teamwork at every step of the value chain

Research & Development

Page 7: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

We are a one-stop provider with an unrivaled offering

7

Light Equipment (LE) Compact Equipment (CE)

Different product groups

same customers

25%of Group sales1

55%of Group sales1

AcademyUsed Machines2Repair2 &

Maintenance2Rental Service2 Genuine PartsConcrete

solutions

Financial Solutions E-Store2 Telematics

Services

20%of Group sales1

1 FY 2019. 2 In selected countries.

Page 8: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Competitors include

Ammann

Bomag

Husqvarna

Weber MT

Customers trust in our longstanding expertise in LE

8

Demolition

Light Equipment (LE)

25%of Group sales1

CompactionConcrete technology

Power & Lighting Pumps

Heaters

€ 2,000Average price of an LE product1

In 1930, Wacker invented

the electric rammer. The

term "wacker packer" is still

used on construction sites.

1 FY 2019.

Page 9: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Customers opt for the advantages of compact equipment

9

Telehandlers Wheel loaders

Compact Equipment (CE)

55%of Group sales2

Dumpers Backhoe loaders Skid steers / Compact track loaders

Excavators

€ 36,000Average price of a CE product2

Urbanization,

limited space and

mechanization are

driving demand for

compact equipment

in construction and

agriculture.

Competitors include

Kubota

Takeuchi

Yanmar

Manitou

JCB

Bobcat (Doosan)

1 own estimates, based on underlying data from CECE and Off-Highway Research 2 FY 2019.

EUR 18 Bnexpected value of global compact

construction equipment market

accessible to Wacker Neuson in 20251

Page 10: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Market leaders trust in the WN Group’s high quality products

10

OEM (APAC)OEM (global2)Sales (EMENA & CIS1)

Wacker Neuson produces

for Caterpillar2

Kramer3 distributes

via JD’s dealer network

Wacker Neuson produces

for John Deere

1 Commonwealth of Independent States. 2 Not in Japan, phasing out. 3 Kramer “green line” only.

Page 11: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Service is key to our customers’ success

Academy

Used Machines2Repair2 &

Maintenance2

Financial Solutions

Rental Service2

E-Store2

Genuine Parts

Telematics

Concrete Solutions

Comprehensive services Collaborative relationship

We are there for our customers, listening,

sharing our expertise and working closely

with them to find the best solutions.

150 sales

and service

locations

Service, Partnership,Reliability

Customer proximity

20%of Group sales1

>550service technicians

in close proximity

to our customers

111 FY 2019. 2 In selected countries.

Page 12: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

12

What makes us strong?

Page 13: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

We serve our markets with three strong brands

13

Construction, gardening/landscaping, maintenance/repairs, etc. Agriculture, horse breeders, tree nurseries, etc.

Page 14: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Our diversified sales organization responds to regional needs

Direct sales &

rent to sell1 DealersKey accounts

& rental firmseCommerce1

Country-specific sales with long-standing customer relationships

1 In selected countries.14

Page 15: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

We drive electrification in our industry

EZ17e

DW15e

DT10e

AP1840e AP2560e

AS60e

AP1850e

ACBe

Full portfolio of zero emission products

ChangeWe are well prepared for the

shift to zero emission

construction sites

“If we learn early enough that

ambitious climate demands will

be imposed, we can drive

innovation forward by

demanding zero-emission

solutions from machinery

manufacturers, equipment

suppliers and contractors.”1

1 Ole Henrik Ystehede, director of EBA (Contractors Association - Building and Construction) for Oslo/Akershus/Østfold.

Through a smart and

innovative procurement

strategy, the City of Oslo

reduces climate gas

emissions at

construction sites.

15

Page 16: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Digitalization creates new opportunities for our business

Connected products –

always a step ahead

Pinpointing location –

connected jobsites

Give your machines a voice

Increasing runtime –

predictive maintenance

Transparency –

Real-time data analysis

Increasing efficiency –

smart products

Optimizing utilization

16

Page 17: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Our diversified business dampens cyclical fluctuations

17

Focus on maintenance & repair

of infrastructure large infrastructure

projects have no major impact on our

business

Rental equipment as buffering alternative to purchasing new

machines maximum flexibility for customers

Only small investment volumes

required

Broad customer base, diversified target industries

Different cycles in agriculture & construction

Resilience to cyclical

fluctuations

1 Source: Off-Highway Research, August 2019. 2 FY 2019

16%of Group sales

from agriculture2

>10different target

industries

0

400

800

1,200

1,600

2,000

0

200,000

400,000

600,000

800,000

1,000,000

Global equipment sales (units) Revenue WN Group (€ million)

-33%

1

+39%

[units] [€ m]

Page 18: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Where are we heading?

Page 19: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

We strive for long-term stable growth

Revenue development

758

992 1,0921,160

1,2841,375 1,361

1,5341,710

1,901

CAGR +10.8%[€ m]

19

>2 Bnrevenue

Strategy

2022targets

2 timesmarket growth

Page 20: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

+15%

Internationalization – plenty of room to grow

20

357.5

401.3

459.5

2017 2018 2019

1,129.8 1,248.9

1,379.0

2017 2018 2019

46.6

59.862.6

2017 2018 2019

+10%

+5%

73%of Group sales1

3%of Group sales124%

of Group sales1

AMERICAS

EUROPE

APAC

[€ m]

[€ m]

[€ m]

1 FY 2019.

Page 21: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Financing programs set up to enable future growth

Extension of anchor dealer network for LE

& CE

Skid steers as door opener for compact equipment

Large potential for

further market share gains

Americas – Anchor dealer strategy to accelerate our growth

21

Light Equipment

Compact Equipment

Services

1 Source: CECE, 2020. 2 John McClelland, ARA vice president, Nov. 2019.

Skid steer market North America1 (units)

60 yearsin the US light equipment market with

high market shares

“The equipment [...] rental industry is growing

and continues to expand faster than the

overall economy. […] In the U.S.,

construction equipment rental revenue is

expected to grow another 2.3 percent in

2020, 3.0 percent in 2021, 3.7 percent in

2022 and 3.1 percent in 2023 to reach

$43.9 billion.”2

2019

2019

109,000

Page 22: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Europe – We are striving to increase market shares

22

Light Equipment

Compact Equipment

Services

2019

Further strengthening of

our market position

Gaining significant market shares in UK &

France (i.a.)

Expansion in agriculture with Weidemann and

Kramer

Game changer

We have redefined

safety and accelerated our

customers’ processes with

our Dual View dumpers

“The 2019 Market Report shows

encouraging growth across

Europe. A key driver being the

increasing pressure on the

industry to improve their CSR

credentials, with the

sustainability benefits of

equipment rental being realised

across industries. […].”1

1 Michel Petitjean, Secretary-General of the ERA, ERA Market Report 2019.

Major market shares in DACH –

plenty of room for growth

in other regions

Page 23: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Europe – We are growing our business in the ag sector

23

All-wheel steering

Articulated steering

Our customers are mainly dairy and

cattle farmers who work in confined

spaces such as stables.

They require small, highly

maneuverable machines with a

minimal turning radius and

outstanding stability.

Development of revenues in the ag sector1

Revenue in MIO. €

1 FY 2019.

+21%growth in CE for the

agricultural sector1

16%of Group sales

from agriculture1

0

100

200

300

2015 2016 2017 2018 2019

+12.6% CAGR

Page 24: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Ramping up production at

plant in Pinghu, China

Partnership with John Deere will

help improve utilization rate in

new plant

Even small market shares would leverage

our sales significantly

APAC – We benefit from structural market changes in China

24

Light Equipment

Compact Equipment

Services

1 Source: Off-Highway Research, Feb. 2020.

0%

20%

40%

60%

80%

100%

Crawler Excavators Wheeled LoadersMini Excavators Mobile CranesCompactors & Pavers Graders & Dozers

Changing market structure in China – compact equipment on the rise1

Mini excavator market China 2019 (units)1

2019

Cooperation with John Deere for the sale of

“Deere”-brand mini and compact excavators

initially in China, Australia and selected Southeast

Asian countries.

85,000

2019

Page 25: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

1 March 2020

APAC – In the region for the region

>20 yearsin the Chinese

light equipment market

Our R&D team in

China comprises

20engineers

working on

solutions tailored

to the region1

Excavator: EZ17.Key Chinese players Key International players

Sany

XuGong

(XCMG)

LiuGong

Caterpillar

Volvo

Hitachi

Kobelco

Kubota

Doosan

Hyundai

China – divided competitive landscape

Production and R&D center in Pinghu, China

25

Page 26: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

We benefit from megatrends

- Maintenance of

infrastructure

- Limited space

- Clean air

regulations

- Noise pollution

- Growing

middle class

- Food

- Mechanization

- Infrastructure

- Housing

- Energy efficiency

- Waste

management

- Process

optimization

- Telematics

- Smart products

- Building Infor-

mation Modeling

(BIM)

26

Page 27: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Solid Balance Sheet Structure

271 As at December 31, 2019.

56%Equity ratio1

1.7Net financial debt/

EBITDA1

Excellent basis

for further profitable growth

Page 28: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Clear-cut strategy and experienced management team

28

Martin Lehner

CEO

Responsible for strategy, procurement,

production, technology, quality, investor

relations, corporate communication,

sustainability, compliance, HR and legal

matters.

Alexander Greschner

CSO

Responsible for sales, service and

marketing.

Wilfried Trepels

CFO

Responsible for finance, controlling, audit,

IT & organization, Supply Chain and real

estate.

Page 29: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Customer-focused strategy

- Streamlining

production sites

29

- Focus on core

areas of expertise

- China as a

growth market

- Development of

digital solutions for

our customers

- Investment in

growth fund for

Industry 4.0

startups

- Expansion of zero

emission product

portfolio

- Employee

development

programs

- Better integration

of sales and

production

- Streamlining the

Group’s internal

supply chain

CUSTOMER CENTRICITY

Page 30: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Wrap up

30

Resilience to cyclicality

Focus on maintenance & repair of

infrastructure

Broad customer base, diversified target

industries

Solid base

Growth potentialMegatrends as

business driversGlobal trend towards compact equipment

Growth opportunitiesin Europe, North

America and APAC

Sales channelsDirect sales & rent

to sellDealers

Key accounts & rental firms

eCommerce

Products

Innovation- and market-leading position in light and compact equipment

Future-proof product portfolio

driven by innovation

One-stop shopPioneers in zero

emissionsolutions

Focus on theright products forthe right markets

High equity ratio, family as anchor

shareholders

Page 31: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

31

Appendix – Financial results

Page 32: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Key figures

321 Net Working Capital/annualized revenue for the quarter.

2 Days inventory outstanding = (inventory/annualized cost of sales for the quarter)*365.

NWC ratio1: 47.4%

(+1.7 PP yoy)

DIO2: 188 days

(+9 days yoy)

Equity ratio: 54.0%

(-3.7 PP yoy)

March 31, 2020

Revenue yoy

-5.6%

EBIT yoy

-6.8%

Op. CF

€ 22 m

FCF

€ 4 m

(margin: 7.0%)

Q1/20

(€ 411 m)

(Q1/19: € -142 m)(Q1/19: € -115 m)

Page 33: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

371

455416

469435

517468 480

411

6.2%

12.3%

10.1%8.9%

7.1%

10.7%

8.8%

5.4%7.0%

0%

5%

10%

15%

20%

0

100

200

300

400

500

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Revenue and earnings

33

-6%

Q1/20: COVID-19 pandemic leads to drop in revenue

Income statement (excerpt)

Q1/20: Comments

Revenue -5.6% yoy (adj. for FX effects: -6.1%)

▪ Growth in Europe; Americas and Asia-Pacific significantly below prior year

▪ Services segment above prior year, rental and service business develop

positively

▪ Sustained above-average growth for compact equipment targeted at the

agricultural sector (+18% yoy)

Gross profit -2.3% yoy (gross profit margin +0.9 PP)

▪ Improved productivity in production facilities

▪ Favorable product mix thanks to strong services segment

EBIT -6.8% yoy (EBIT margin: -0.1 PP)

▪ Strict cost control measures: Operating costs 2.7% below prior year (does

not include restructuring costs under program to cut costs and improve

efficiency (CEP) in the amount of € 1.9 million)

▪ EBIT before restructuring costs from CEP: € 30.8 million (≙ margin of 7.5%)

Earnings per share -73.3% yoy

▪ Financial result clearly negative: FX effects (€ -10.7 million yoy) primarily

attributable to valuation effects related to a sharp decline in the value of

several currencies

▪ Tax rate at 64.7% (Q1/19: 30.4%): Aforementioned negative FX effects

cannot be recognized as operating expense, reversal or non-capitalization

of deferred tax assets, tax rate adjusted for these effects: 31.1%

Revenue

[€ m]

EBIT

margin

€ million Q1/20 Q1/19 Δ

Revenue 410.8 435.4 -5.6%

Gross profit 109.1 111.7 -2.3%

as a % of revenue 26.6% 25.7% +0.9 PP

Operating costs excl. other income/expenses -82.6 -82.9 -0.4%

as a % of revenue -20.1% -19.0% -1.1 PP

EBIT 28.9 31.0 -6.8%

as a % of revenue 7.0% 7.1% -0.1 PP

Financial result -12.2 -1.1 >1000%

Taxes on income -10.8 -9.1 18.7%

Profit for the period 5.9 20.8 -71.6%

Earnings per share (€) 0.08 0.30 -73.3%

Page 34: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Q1/20: Growth in services segment

410.8

7.5

76.9

326.4

Total Q1/20

Asia-Pacific

Americas

Europe

Business development by region and business segment

34

Q1/20: Growth in Europe, revenue losses in NA and China

Revenue Europe +3.1% yoy (adj. for FX effects: +2.8%)

▪ Demand for Weidemann- and Kramer-branded compact equipment for

agriculture remained strong (revenue +18% yoy)

▪ Sustained significant double-digit growth with dumpers, strong demand

for Dual View models

▪ DACH region develops positively; in contrast, significant revenue losses

in various regions including Southern Europe, Poland, France and the

UK as a result of the COVID-19 pandemic

▪ Several key accounts postpone orders, including rental chains

Revenue Americas -27.0% yoy (adj. for FX effects: -28.3%)

▪ Decline in investment activity among dealers due to current uncertainty

▪ Several key accounts postpone orders, including rental chains

Revenue Asia-Pacific -44.0% yoy (adj. for FX effects: -42.5%)

▪ Chinese production facility and Chinese dealer organization brought to a

temporary standstill due to the rapid spread of the COVID-19 virus

▪ Situation eases leading to a gradual ramp-up in March

79%

19%

2%

100%

+3%

-27%

-44%

-6%

Share yoy

49.1

-5.2

-1.4

28.9

EBIT1

Q1/20: Comments

Revenue [€ m]

414.0

90.4

227.4

96.2

Total Q1/20

Services

Compact equipment

Light equipment 23%

55%

22%

100%

-12%

-7%

+9%

-6%

Share yoy

1 EBIT for regions before consolidation.2 Revenue by business segment before cash discounts.

Revenue [€ m]2

Page 35: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

Decrease in net working capital

35

Inventory

Trade payables

Trade receivables

▪ Slight increase in inventory relative to the year-end due to a drop in

revenue; marked cut-back in production programs in response to the

COVID-19 pandemic; Group aims to reduce inventory by end of year

▪ Trade receivables continue to decrease; high levels in previous year

partly due to strong revenue growth especially during the first half of the

year

▪ Trade payables higher than year-end levels, Q3/19 and Q4/19

impacted by capacity reductions

→ Reduction of net working capital continues (see next slide)

1 Days inventory outstanding = (inventory/(cost of sales*4))*365 days; 2 Days sales outstanding =

(receivables/(revenue*4))*365 days; 3 Days payables outstanding = (payables/(cost of sales*4))*365 days.

Comments

Trade payables

[€ m]

Inventory

[€ m]

459 462500

553

633 645 663603 623

153130

151 144

179155

173147

188

0

100

200

300

400

0

100

200

300

400

500

600

700

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

DIO1

[days]

273

320 304 303

371413 400

359 345

67 64 6759

78 73 7868

77

0

50

100

150

200

0

100

200

300

400

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

149163 167

213 208 199

164150

189

50 46 50 56 5948 43 37

57

0

50

100

150

200

0

50

100

150

200

250

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Trade receivables

[€ m]

DPO3

[days]

DSO2

[days]

Page 36: Wacker Neuson Group Working side by side with our …...of Group sales from agriculture2 >10 different target industries 0 400 800 1,200 1,600 2,000 0 200,000 400,000 600,000 800,000

-45

57

-3 -9

-142

-42 -16

84

4

-160

-120

-80

-40

0

40

80

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Free cash flow slightly positive

36

Net working capital

Free cash flow

Cash flow from operating activities

▪ Reduction of net working capital continues (€ -33 m relative to Q4/19);

net working capital as a percentage of revenue slightly above the

previous year due to reduced business volume, +5 PP relative to Q4/19

▪ Positive free cash flow, normalization of inventory levels and further

reduction in trade receivables expected over the coming months

-41

6 10 10

-115

-28

2

120

22

-150

-100

-50

0

50

100

150

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Comments

Free cash flow

[€ m]

Cash flow from operating activities

[€ m]Net working capital

[€ m]

583 620 638 644

797858

899812 779

39%34%

38%34%

46%42%

48%42%

47%

0%

20%

40%

60%

80%

100%

0

200

400

600

800

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Net working capital

[as a % of revenue]1

1 Net working capital/annualized revenue for the quarter.

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1,122 1,170 1,200 1,221 1,242 1,188 1,217 1,225 1,235

65% 65% 65% 64%58%

53% 54% 56% 54%

0%

20%

40%

60%

80%

100%

0

200

400

600

800

1,000

1,200

1,400

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

193 188 193 205

358

484513

439 446

17% 16% 16% 17%

29%

41% 42%36% 36%

0%

20%

40%

60%

80%

0

100

200

300

400

500

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Gearing above prior year, liquidity secured

37

▪ Slight rise in net financial debt since the start of the year, planned

reduction through targeted decrease in net working capital over the

year

▪ Ratio of net financial debt to EBITDA increased due to a rise in

gearing relative to Q1/19

▪ Liquidity secured through existing credit lines

▪ Proposal to the Annual General Meeting: Suspension of dividend for

fiscal 2019 to further strengthen financial stability

1.2

0.60.8

0.7

1.61.5

1.91.7

2.0

0.0

0.5

1.0

1.5

2.0

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Net financial debt

[€ m]

Equity

[€ m]

Net financial debt and gearing1

Equity and equity ratio

Net financial debt/EBITDA2

1 Net financial debt/equity. 2 Net financial debt/annualized EBITDA for the quarter.

Gearing1

Equity ratio

Net financial debt/

EBITDA2 [x]

Comments

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Cost reduction and efficiency enhancement program

38

Key provisions

Reduction on material costs

Underabsorption

Purchasing costs

Restructuring costs (production affiliate USA)1

Discounts and impairment 1

Restructuring sales organization

Shipping costs

Restructuring costs (sales affiliate USA)

Reduction of inventory levels

1 Topics which burdened profitability in 2019. Impact in 2020 is estimated to fade.

Cost reduction and efficiency enhancement program covers all Group divisions.

4 focus topics each in production & purchasing and sales & administration

Production & Purchasing Sales & Administration

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25

50

75

100

125

150

175

Wacker Neuson SDAX DAX Peer group

1.30

0.940.81

1.25

2.06

1.26

0.50 0.50 0.500.60

1.10

0.00

38%53% 62%

48% 53%

0%

-200%

-150%

-100%

-50%

0%

50%

-0.20

0.30

0.80

1.30

1.80

2.30

2.80

2014 2015 2016 2017 2018 2019

EPS in € Dividend per share in € Payout ratio

Share Development

39

The share in 2019/20201

Key figures per share

COVID-19: Suspension of dividend payment proposed

1 As at May 1, 2020 2 Peer group: Ashtead, Atlas Copco, Bauer, Caterpillar, Cramo, Deutz, DoosanBobcat, Haulotte,

Husqvarna, John Deere, Komatsu, Manitou, Palfinger, Terex, United Rentals, Volvo. 3 As at May 25, 2020.

Family 58%

Free float 42%

(Total shares: 70,140,000)

Coverage3 Shareholder structure

in € Q1/20 Q1/19

Earnings per share 0.08 0.30

Book value per share 17.62 17.71

Share price at end of period 10.04 21.20

Market capitalization (€ m) 704.2 1,487.0

0.50

0.60

Special dividend in €

Will be

proposed

to AGM

% +3%

2

-34%

Bank TP (€) Recom. Date

Hauck & Aufhäuser 21.00 Buy May 11, 2020

Warburg 17.00 Buy May 08, 2020

Jefferies 15.50 Buy May 15, 2020

Metzler 13.50 Buy May 08, 2020

Bankhaus Lampe 13.00 Buy May 08, 2020

Berenberg 12.50 Buy Apr 22, 2020

Commerzbank 10.00 Hold May 07, 2020

Kepler Cheuvreux 7.50 Reduce May 18, 2020

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Outlook for 2020

40

Business index for agriculture

Business index for construction Guidance for fiscal 2020 withdrawn

▪ Mood in the construction sector at an all-time low according to the

CECE business index

▪ Mood in the agricultural sector at its lowest point since the 2008/2009

financial crisis according to the CEMA business index

▪ Major uncertainty regarding the further spread of the coronavirus and

the extent of safety measures imposed by governments; operational and

financial risks have increased significantly

▪ April 21, 2020: Guidance for fiscal 2020 withdrawn

The economic situation deteriorated significantly towards the end

of Q1/20; revenue and order intake significantly below prior-year

levels in first half of April

Currently not possible to predict how the coronavirus pandemic

will effect customer demand, robustness of global supply chains

and the Group’s production output

Production programs have been cut back, vacation-related

shutdowns at production plants have been brought forward and

various short-time work models have been implemented

▪ Original guidance, published on March 16, 2020:

Revenue between € 1,700 and € 1,900 m

EBIT margin between 6.5 and 8.5%,

Investments of € 80 m to € 100 m,

Net working capital as a % of revenue to remain unchanged or be

slightly below the previous year

6,5 – 8,5%

Source: CECE, April 2020.

Source: CEMA, April 2020.

2012 2013 2014 2015 2016 2017 2018 2019 2020

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Financial calendar and contact

41

Disclaimer

This report contains forward-looking statements which are based on current estimates and assumptions made by corporate management at Wacker Neuson SE. Forward-looking statements are

characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate and similar formulations. Such statements are not to be understood as in any way

guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Wacker Neuson SE and its affiliated companies depend on a number of risks

and uncertainties and may therefore differ materially from forward-looking statements. Many of these factors are outside the Company's control and cannot be accurately estimated in advance, such as

the future economic environment and the actions of competitors and market players. The Company neither plans nor undertakes to update any forward-looking statements.

All rights reserved. Valid May 2020. Wacker Neuson SE accepts no liability for the accuracy and completeness of information provided in this brochure. Reprint only with the written approval of Wacker

Neuson SE in Munich, Germany. The German version shall govern in all instances.

Contact

Wacker Neuson SE

Contact IR: +49 - (0)89 - 354 02 - 427

[email protected]

www.wackerneusongroup.com

May 7, 2020 Publication of Q1 report 2020, investors & analysts call

May 11, 2020 Metzler eRoadshow, Germany

May 27, 2020 Berenberg eRoadshow, Spain

June 16, 2020 Commerzbank eRoadshow, Zurich

June 17, 2020 Jefferies eRoadshow, Milan/Lugano

June 23, 2020 Hauck & Aufhäuser eRoadshow, London

June 30, 2020 Virtual Annual General Meeting 2020, Munich

August 5, 2020 Publication of half-year report 2020, investors & analysts call

August 18, 2020 Bankhaus Lampe German Conference, Baden-Baden

November 5, 2020 Publication of nine-month report 2020, investors & analysts call