Wacker Neuson Se · XETR:WAC
Wacker Neuson — Shareholder Meeting (May 2017)
61 slides from Wacker Neuson's shareholder meeting presentation, May 30, 2017
Slide 1: Executive Board
Executive Board Areas of responsibility Cem Peksaglam Wilfried Trepels Alexander Greschner Martin Lehner CEO CFO CSO CTO Strategy, HR, legal matters, Finance, audit, IT Sales, logistics, service, Procurement, production, compliance, real estate, marketing technology, quality investor relations, corp
Slide 2: 2017 Annual General Meeting of Wacker Neuson SE
2017 Annual General Meeting of Wacker Neuson SE Executive Board Report May 30, 2017 2
Slide 3: Content
Content Fiscal 2017 Financial indicators and Annual General Meeting share Q1 2017 & Outlook Sales & Logistics Technology and Innovation 3
Slide 4: Highlights of fiscal 2016
Highlights of fiscal 2016 FY revenue at PY’s level (€ 1,36bn; -1% in €, adjusted by Challenging market environment in energy sector (oil & gas), currency effects +0.3%) agricultural and mining sector as well as persisting market Solid revenue growth in Europe (+4%; € > 1bn) weakness in Latin A
Slide 5: 5-year-comparison
5-year-comparison Revenue and EBIT margin 2012–2016 (in € m) (in %) +25% € 508m EBIT over the last five years, average of € 102m per year 5
Slide 6: Global construction machinery lowest in 5 years
Global construction machinery lowest in 5 years Global unit sales of construction equipment Development since 2012 Construction equipment sold in 2016 represented the (Units) bottom of the industry’s economic cycle -30% Global unit sales -30% Trends 2016 Sales were affected by weak economic gr
Slide 7: 2016: Comparison with peer group (construction equipment)
2016: Comparison with peer group (construction equipment) Revenue (2016 vs. 2015) in local currency Company Change revenue 2017 vs. 2016 in local currency Peer 1 (in ¥) 6% Peer 2 (in €) 3% Wacker Neuson (in €) -1% Peer 3 (in SEK) -1% Peer 4 (in SEK) -3% -3% Peer 5 (in ¥) -8% Peer 6 (in ¥) -9% Peer 7
Slide 8: Global agricultural machinery -10% in 4 years
Global agricultural machinery -10% in 4 years Global market volume for agricultural machinery Development since 2012 (Volume in € bn) 2016 represented the bottom of the industry’s economic cycle for agricultural machines 110 -10% Global market volume -10% +3% Trend 2016 100 High saturation lev
Slide 9: 2016: Comparison with peer group (agricultural equipment)
2016: Comparison with peer group (agricultural equipment) Revenue (2016 vs. 2015) in local currency Company Change revenue 2017 vs. 2016 in local currency Peer 11 (in US-$) -1% Wacker Neuson Agriculture (in €) -4% Peer 12 (in €) -5% Peer 13 (in US-$) -8% Peer 14 (in US-$) -8% 9
Slide 10: Development of strategic alliance with HAMM AG
Development of strategic alliance with HAMM AG Expansion of product line/international roll-out Tandem rollers (1.8 – 4.5 t) and compactors (weighing up to 12 t) 10
Slide 11: First production of compact equipment in the US
First production of compact equipment in the US Skid Steer loaders (SSL) relocation of R&D and production from Wacker Neuson Austria to the existing plant in Wisconsin, USA in 2015 Difficulties in ramp-up of production were solved in 2017 11
Slide 12: North America biggest market for skid steer loaders (SSL)
North America biggest market for skid steer loaders (SSL) Units-Split 2016e Forecast 2016e – 2020e (Global market 2016: 105.700) (Units) Globally, the North American market has accounted for ~70% of the global units sold 140000 +23% (2016e: 74,000 units) 130.000 120000 The global market will gro
Slide 13: New production of mobile generators in Brazil
New production of mobile generators in Brazil Located in Itatiba, São Paulo, Brazil Building on local/regional presence, target market: Latin America Products tailored to local market’s need, engineering and production “in the region – for the region” Generator production (models: 50-70 kilo
Slide 14: Breaking ground for new plant in China
Breaking ground for new plant in China Located in Pinghu, 30 km from Shanghai city border Building on local/regional presence demand for repair and maintenance work on infrastructure is growing, especially in large cities Starting with the production of compact excavators for local market, m
Slide 15: Focus on employee and management development
Focus on employee and management development Programs / Actions Apprenticeship and training as success factors Global Leader Summit: regular management meetings world wide Leadership-Excellence-Program in cooperation with TUM1 (since 2015: 23 employees have completed the program, 32 currently pa
Slide 16: Content
Content Fiscal 2017 Financial indicators Annual General Meeting and share Q1 2017 & Outlook Sales & Logistics Technology and Innovation 16
Slide 17: Business performance – sales split by region 2016
Business performance – sales split by region 2016 Revenue by region1,2 Europe All-time high: revenue above EUR 1bn; +4% to EUR 1,021 m despite (in € m) weak agriculture market, difficulties in Turkey, Russia and South Africa 1,375 Special projects central logistics, eStore, R&D relocation to +3%
Slide 18: Business performance – sales split by business segments 2016
Business performance – sales split by business segments 2016 Revenue by business segment1, 2 (in € m) Light equipment Difficult market environment (oil & gas, emerging markets) revenue decrease by 9% to EUR 378m 20% 284 +5% (+6%) 297 21% Solid performance in Europe but weak demand in the US Co
Slide 19: Development of revenue and profitability 2016
Development of revenue and profitability 2016 Income statement (extract) and number of employees (in € m) Comparison of EBIT vs. previous year 2015 2016 Change 2016 in % 2015 in % in % Gross profit: Revenue 1,361.4 100.0 1,375.3 100.0 -1.0 Volume effect: € -3.9m vs. PY Gross profit 376.2 27.6 38
Slide 20: Key figures from balance sheet – excellent credit standing
Key figures from balance sheet – excellent credit standing Equity (before minority interests) FY 2016 (in € m) (as %) 1.200 1.087 80% Equity increased slightly by 2% to € 1,087 m vs. 2016 1.064 1.012 78% 1.000 915 936 76% Equity ratio of 69% 800 74% 71% 70% 72% Net financial debt € 206m (Geari
Slide 21: Business performance: Increase of free cash flow in 2016
Business performance: Increase of free cash flow in 2016 Free cash flow (qoq 2015 – 2016) Inventories (qoq 2015 – 2016) (in € m) (in € m) (DIO) 46 495 494 514 50 475 464 250 35 500 445 448 443 30 400 200 15 19 11 146 128 124 134 127 10 3 300 117 115 150 107 -10 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3
Slide 22: Wacker Neuson Share
Wacker Neuson Share Share price development 2016 % 15.42€ 15.98€ 12.34€ 14.23€ Adaption of FY guidance Termination CAT alliance KPIs (€) 2015 2016 Earnings per share FY 0.94 0.81 Book value per share Dec. 31 15.17 15.52 Market capitalization Dec. 31 (€m) 998.1 1,081.2 22
Slide 23: Content
Content Fiscal 2017 Financial indicators and Annual General Meeting share Q1 2017 & Outlook Sales & Logistics Technology and Innovation 23
Slide 24: Central Logistics Facility for Spare Parts, Attachments and Accessories
Central Logistics Facility for Spare Parts, Attachments and Accessories Consolidation of customer orders Central location for bundling the flow of goods Reduced storage footprint for same parts Leveraging synergies in storage and procurement 24
Slide 25: Launch of Wacker Neuson e-partner portal and e-store
Launch of Wacker Neuson e-partner portal and e-store For distribution partners, key accounts, etc. For B2B customers* www.shop.wackerneuson.com www.shop.wackerneuson.com *In Germany, France, UK Strong, digital image – covers the entire product portfolio 25
Slide 26: 2016 Industry Highlight: Trade show Bauma in Munich
2016 Industry Highlight: Trade show Bauma in Munich World’s largest construction equipment tradeshow – 3,425 exhibitors – 583,736 visitors Over 5,300 m2 exhibition space for the Wacker Neuson and Kramer brands Over 250 products on display – demo shows attracted the crowds – interactive stand con
Slide 27: Highlights of 2016 in South America
Highlights of 2016 in South America Production in Brazil – five sales affiliates in Chile, Mexico, Brazil, Peru, Colombia Increasing brand awareness and establishing ties with new dealerships Wacker Neuson took part in various trade shows in South America in 2016 Wacker Neuson Chile celebrated
Slide 28: North America 2016: Further Development of Sales Structures
North America 2016: Further Development of Sales Structures Focus on diversification of sales channels and industries Focus on contracted dealer network for compact and small machines More pro-active relationship management with key account rental customers and construction companies Light equ
Slide 29: China: Expansion of Sales Network and Bauma China Trade Show
China: Expansion of Sales Network and Bauma China Trade Show Development of compact equipment market – Bauma in Shanghai – start of construction at Pinghu Successful development of compact equipment market through expansion of the dealer network Difficult environment for light equipment and in t
Slide 30: Presence in the Agricultural Sector in 2016
Presence in the Agricultural Sector in 2016 EuroTier – Kramer and Weidemann at the world’s most important agricultural equipment exhibition Network of Kramer dealers successfully established in the agricultural sector International expansion of the Weidemann brand outside of Europe 30
Slide 31: GaLaBau in Nuremberg – September 2016
GaLaBau in Nuremberg – September 2016 Trade show for the gardening and landscaping sector with over 64,000 visitors Focus on zero emissions solutions from Wacker Neuson and Kramer A first for the construction sector: Indoor demo show becomes huge crowd puller 31
Slide 32: Satisfied Customers are the Best Advertisement
Satisfied Customers are the Best Advertisement Gardening and landscaping in Sanssouci park, DE Hospital modernization, IT In action at Copenhagen Zoo, DK In action at Linz Zoo, AT In action in agriculture, AT Working at the EU Parliament, Strasbourg, FR Renovation of Kocher Viaduct, DE City rail tun
Slide 33: Content
Content Fiscal 2017 Financial indicators and Annual General Meeting share Q1 2017 & Outlook Sales & Logistics Technology and Innovation 33
Slide 34: Emissions standards in Europe
Emissions standards in Europe EU Stage V from 2019 Particle mass threshold will be reduced by 40%: from the present 25 to 15 mg/kWh EU Stage IV is the current emissions standard for non-road mobile machinery in Europe. To date, emissions of nitrogen oxides and particulate matter have been reduced by
Slide 35: Impact on cost: New emission regulations for diesel engines
Impact on cost: New emission regulations for diesel engines * Non-harmonized engine emission regulations – a cost driver and resource consumer * from 2019/2020 onwards 35
Slide 36: Strengthening position as innovation leader with AS30e/AS50e
Strengthening position as innovation leader with AS30e/AS50e Focus on operator safety and environmental protection Up to 55 percent savings in operation and maintenance compared with conventional rammers 2016: Euro Test Prize from Berufsgenossenschaft Bau New batteries (since March 2017) extend oper
Slide 37: Further development of successful Weidemann 1160 eHoftrac
Further development of successful Weidemann 1160 eHoftrac® 1160 eHoftrac® in series production since 2015 New absorbent glass mat (AGM) battery technology Less susceptible to changes in temperature Less heat build-up when charging and in operation Increased efficiency and improved performance Onboar
Slide 38: Leading alternative drive technologies
Leading alternative drive technologies 2016 38
Slide 39: Electric wheel loader: 5055e
Electric wheel loader: 5055e 100% emission-free: with two electric engines, one for work hydraulics and one for drive system Mobility, maneuverability and operational comfort are similar to the conventional models Proven lead-acid battery to run the electric engines Battery lasts for at least 5 work
Slide 40: Megatrend Digitalization
Megatrend Digitalization 40
Slide 41: Digitalization @ Wacker Neuson
Digitalization @ Wacker Neuson Connected Smart Factory Construction Site Smart Office Horizontal Integration Smart Production Smart Products (CAD Data) Vertical Integration Smart Logistics Internet of Things (Middleware) Digital Factory Smart Services Digital Processes New technologies, data analyti
Slide 42: Digitalization along the value chain of Wacker Neuson
Digitalization along the value chain of Wacker Neuson Product Management Procurement Work Preparation Production Sales Customer Service Engineering Logistics Supportive Functions (Marketing, HR, …) Real-time diagnosis Digital Kanban Virtual Prototyping Digital Twin in Production Digital Logistics Pr
Slide 43: Customer benefit is the focus in the digitization
Customer benefit is the focus in the digitization Predictive maintenance Higher quality and product improvements New functionality On-demand retrieval of product information Remote diagnosis of error codes Advanced theft protection Availability of new services Convenient maintenance & administration
Slide 44: Content
Content Fiscal 2017 Financial indicators and Annual General Meeting share Q1 2017 & Outlook Sales & Logistics Technology and Innovation 44
Slide 45: Review of Q1/17
Review of Q1/17 Record revenue in Q1: +7 % yoy (€ 339m, currency adjusted +6%) Revenue in Asia/Pacific -45% yoy, due to one-off effect in China in Solid revenue growth in Europe (+9% yoy) Q1/16 (dealers stocking up compact equipment) High demand from construction and ag industry Challengin
Slide 46: Group revenue (Q1 year comparison 2013-2017)
Group revenue (Q1 year comparison 2013-2017) Revenue and EBIT margin Q1/13-Q1/17 (in Mio. €) (in %) +7% 338.5 324.3 316.4 291.6 257.1 7.8 6.4 5.5 4.8 4.3 4.0 4.2 Revenue EBIT margin in % EBIT margin in % adjusted for one-off effects Record revenue in Q1/17, profit impacted by one-off effects Note: C
Slide 47: Latest developments: Possible one-off income from sale of real estate company in 2017
Latest developments: Possible one-off income from sale of real estate company in 2017 A: Site for sale B: Site of Group headquarters B A 47
Slide 48: Latest developments: Conexpo, Las Vegas (March 7–11, 2017)
Latest developments: Conexpo, Las Vegas (March 7–11, 2017) Wacker Neuson in the US for 60 years, in Canada for 50 years Introduction of new skid steer and compact track loaders (mid frame) 128,000 visitors, more than 2,800 exhibitors Positive mood among customers and exhibitors 48
Slide 49: Latest developments: Opening of new R&D center Reichertshofen
Latest developments: Opening of new R&D center Reichertshofen Creation of a global competence center fro compaction technology Engineering & Admin. Research & Testing Production Training facility Area: 1.200 m² Area: 3.000 m² Area: 25.000 m² Area: 4.500 m² Engineering, Purchasing, Calcul
Slide 50: Latest developments: Cooperation between Randon and Wacker Neuson in Latin America
Latest developments: Cooperation between Randon and Wacker Neuson in Latin America Wacker Neuson launched two backhoe loader models BL744 and BL742 (both 6 to 7 tons operating weight) Specifically developed to fit the needs of the Latin American market Manufacturing of backhoe loaders in Rando
Slide 51: Latest developments: Collaboration between Everdigm and Wacker Neuson in South Korea
Latest developments: Collaboration between Everdigm and Wacker Neuson in South Korea Everdigm Corporation: Leading, listed manufacturer of concrete pumps, attachments, cranes, mining equipment Distribution partner for Wacker Neuson wheel loaders Attended CONEX KOREA in May with dedicated WN st
Slide 52: Outlook: global construction machinery sales bottomed out in 2016
Outlook: global construction machinery sales bottomed out in 2016 2016–2020 machinery sales CAGR: 6% Wacker Neuson’s expectations -30% +25% Europe main growth driver, esp. Central Europe Market recovery in North America stronger +7% revenues from SSL, no more one-off effects expected Latin A
Slide 53: Outlook: Improved mood in agriculture sector
Outlook: Improved mood in agriculture sector Opinion barometer for economic outlook concerning agriculture business in Germany Source: German Farmers’ Association, March 2017 53
Slide 54: Outlook: Optimistic forecast for 2017
Outlook: Optimistic forecast for 2017 Financials Forecast 2017e 2016 FYe 20171 Mid term Revenue EUR bn 1.36 1.40 – 1.45 >2.0 EBIT margin % 6.5 7.5 – 8.52 >9.0 (operational) Working Capital 42 <40 <40 as % of revenue Depending on CapEx EUR 107 m 120 m growth Free cash flow 29 m better better 1 Assume
Slide 55: Share – 2011 to today
Share – 2011 to today Development since Q4/2011 +139% Share price May 29, 2017: Share price Oct 1, 2011: 20.32 € € 8.51 Market capitalization: Market capitalization: € 1,425.2m € 596.9m KPIs (€) Q3/11 Q1/17 Share price end of period 8,51 21,02 Book value per share end of period 12,45 15,69 IPO Wacke
Slide 56: Content
Content Fiscal 2017 Annual General Financial indicators and Meeting share Q1 2017 & Outlook Sales & Logistics Technology and Innovation 56
Slide 57: 2017 Annual General Meeting (AGM)
2017 Annual General Meeting (AGM) On Tuesday, May 30, 2017 at 10 a.m. in the Hanns Seidl Foundation, Munich Brief explanation of items on the AGM agenda Agenda item 1: Presentation of the Annual Financial Statements - The Annual Financial Statements have been available since March 16, 2017. - This y
Slide 58: Dividend proposal to AGM (May 30, 2017)
Dividend proposal to AGM (May 30, 2017) Dividend payouts 2014 2015 20161 € 0.50 per share Total payout (€ million) 35.07 35.07 35.07 (payout of € 35.07m on June 2,2017) Payout ratio (as a %) 38.3 53.0 61.7 Keeping level of last two years, ensuring dividend Eligible shares (in m) 70.14 70.14 70.1
Slide 59: Brief explanation of items on the AGM agenda
Brief explanation of items on the AGM agenda Agenda item 6: Resolution regarding the creation of authorized capital in 2017 with the option of excluding subscription rights and regarding the corresponding changes to the Articles of Incorporation and Agenda item 7: Procurement of treasury shares – Th
Slide 60: Financial calendar and IR contact
Financial calendar and IR contact Financial Calendar May 30, 2017 AGM, Munich June 13, 2017 Roadshow, Frankfurt June 29, 2017 Roadshow, Paris August 8, 2017 Publication of half-year report 2017; Analyst Conference Call November 9, 2017 Publication of nine-month report 2017; Analyst Conference Call I
Slide 61: 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